SCM and the fifth industrial revolution


How AI impacts the process management flow



By Mohamed MARZOUGUI, Barthélémy MENARD, Mathias SULLY,

Folachadé RAÏMI, Yassine E.

l’École supérieure de logistique industrielle – ESLI

Paris, France


We are almost a decade into the 5th industrial revolution. This revolution is driving digital and green transitions, that places worker well-being at the heart of the production process and productivity. This fifth revolution has had an impact on the management of the entire supply chain from point of manufacturing to consumption. Among other things, this revolution has enabled the use and development of artificial intelligences.

This article reflects on the implication of Artificial Intelligences in the process of managing supply chain flows. It is important to analyze the challenges of the transformation of the 5th revolution in the field of logistics. To do this, after a brief conceptual clarification, we present the different structural changes brought about by artificial intelligence in Supply Chain Management. This is supported by analyses and different case studies. This has allowed us to determine the link between AI and logistics. Subsequently, we have considered the best techniques in the usage of Artificial Intelligence in field of the Supply Chain management. In the medium and long term, AI will take the place of humans in companies. This will gradually eliminate certain jobs. Although we need Artificial Intelligence, we also need human to achieve better results, and in order to maintain its place in the chain, it is important for humans to reinvent and create new jobs.



Is it important to look at the relation between the evolution of the SCM and AI? Supply Chain Management is not just logistics. It is the flow from suppliers to customers. The flows are divided into three. The information flow, which is the brain behind the physical flow. Then the physical flow which is linked to all movements such as products and transport. The last flow is financial in order to pay and get paid. The fourth industrial revolution, also called 4.0, corresponds to the digitalization and connectivity of tools. The aim is to control and monitor a factory remotely. What is the 5th revolution? It is a new technology. It aims to let a factory manage itself autonomously without being human. This technology is artificial intelligence. Artificial intelligence is a process of imitating human intelligence which is based on dynamic computer algorithms.

The objective of AI is to automate any system by incorporating a dynamic (intelligent) computer algorithm. This algorithm can make the same decisions as a human. This means that the AI will make the best decision based on the incoming information it receives. By integrating this system, we can run a factory without humans. We also have immediate reactivity because the AI retrieves data in real time thanks to factory 4.0. The system is logically evolving. This means that it learns from past actions to better react in the future. The main challenge is to make companies even more efficient. In doing so, AI is a weapon against the competition.

The cause of all possible risk is the removal of any human action or control over an AI. We have 3 levels of risk. High risk with the most serious threats such as data hacking, data modification or taking control of everyday devices (car, plane, …). Critical risk threats concern human security and integrity. For example, the takeover of military robots or drones for criminal purposes. Scams or Cyber-attacks on vital systems. While the weakest risks are poor judgement or choice of AI, system blockages in the face of a new situation, data exploitation.

Based on current research and based upon real-world experiments, the importance of the supply chain in any organization is acknowledged and the advantage of using ai is also widely known. However, the implementation of both at the same time is not developed. Thus, we can see a gap: How AI impacts the process management flow?


La gestion des flux et l’Intelligence Artificielle

In logistics, flow management is constituted of all the activities between the manufacturing and distribution process of a product. The supply chain is divided into 3 flows: the information flow, the physical flow and the financial flow.

The information flow enables the various activities in the supply chain to be forecast, anticipated and planned.  This is to better channel the risks that may affect the system and cause unforeseen additional costs. Artificial Intelligence helps to revitalize the information processing system by identifying the important content from the superfluous. It makes forecasts more reliable. Let’s take the case of raw material supply. A good number of companies in search of economies of scale prefer to export from LCCs (Low-Cost Countries) rather than buy locally or in neighboring countries. But this purchase involves consideration of cost and time factors. Are we going to buy low cost with a long lead time or buy a little more expensive with a short lead time? What, when, how, where to buy? The decisions related to this questioning can be taken with Artificial Intelligence. Artificial Intelligence considers data factors such as need, purchasing power, personal data and customer experiences that feed the algorithms.


To read entire article, click here

Editor’s note: This paper was prepared for the course Supply Chain Tools and Project Management in Master’s degree in Secured & Intelligent Logistics – option: Defense and Private-Public ecosystems, l’École supérieure de logistique industrielle – ESLI, Paris campus. Reviewed by Mohamad-Fadl HARAKE, Affiliate Professor at ESLI Paris and Academic Head of the Logistics Programs.

How to cite this paper: Marzougui, M., Menard, B., Sully, M., Rami, F., Yassine, E. (2021). SCM and the fifth industrial revolution: How AI impacts the process management flow, PM World Journal, Vol. X, Issue XII, December. Available online at https://pmworldlibrary.net/wp-content/uploads/2021/12/pmwj112-Dec2021-Marzougui-Menard-Sully-Raimi-E-SCM-and-the-fifth-industrial-revolution.pdf

About the Authors


France / Morocco


Mohamed Marzougui is a student in the Higher School of Industrial Logistics in M2, intelligent secure logistics field. He is an engineer – specialized in Operational Research and Decision Support. He graduated in 2016 from the National Institute of Statistics and Applied Economics (INSEA) in Rabat, Morocco. After almost 4 years of experience in the Moroccan industry, he decided to continue his studies in France to confirm his skills in the field of Industry 4.0 and to be able to continue his career in this field in Europe. He can be reached via: mmarzougui@etu.campus-redon-industries.com


Barthélémy MENARD



Barthélémy Menard is a student at the school of ESLI Paris. He has an HND in quality logistics and management of organizations. Barthélémy can be contacted at: menardmailpro@gmail.com and bmenard@etu.campus-redon-industries.com


Mathias SULLY



Mathias Sully is a student at the school of ESLI Paris (master’s degree in logistics manager Industrial purchasing specializing in Secure Intelligent Logistics), in apprenticeship at Fountaine Pajot. He studied at the ITII at Vernon for 3 years (Master of Engineering degree in Industrial Logistics), and has did his apprenticeship at Autoliv. Mathias can be contacted at msully@etu.campus-redon-industries.com


Folachadé RAMI
Benin / France


Folachadé Rami is currently pursuing her master’s degree in logistics management specializing in Secure Intelligent Logistics. She holds a Bachelor in logistics and transportation and a master’s degree in Port and Maritime Management (with a focus on Production Management, logistics, and purchasing). This allowed her to have a vast experience in the fields of maritime transportation, logistics and the transit of oil-based derivatives. At the end of her studies, her ambition is to integrate the largest groups specializing in industry, transport, mass distribution and Non-Governmental Organizations-NGOs as a Supply Chain manager. Folachade can be contacted at folachaderaimi@gmail.com & araimi@etu.campus-redon-industries.com


Yassine E.



 Yassine E. is a student at the Graduate school of ESLI Paris. He has his bachelor’s degree in Logistics and Transport in a business school and is still passionate about the digitization of logistics and automation processes.