Deep Learning based Transferrable Supply Chain Stress Test

An AI based framework for evaluating and strengthening supply chains

Since the beginning of the 90s, global supply chains have been structured to prioritize cost minimization in a considerably disruption-free global economy. Consolidation of suppliers, applying lean principles, and reducing inventory levels have been the main objective for strengthening companies’ competitiveness. However, natural disasters/environmental changes and geopolitical disruptions such as the 2011 Japan Tsunami, COVID-19, the 2021 Suez Canal obstruction, and the ongoing war in Ukraine showed the vulnerability of the global supply chain. Therefore, a paradigm shift from “cost first” to “resiliency first” is being observed in supply chains. Furthermore, competitive product innovation, equipment and supplier reliability, demand fluctuations, sustainability concerns, and increasing energy prices are bringing additional stress. Therefore, the “collapse of a systematically important supply chain” and “supply chain disruptions and shortages” are listed as one of the biggest risks in the global economy for the next decade by the World Economic Forum and MHI. Hence, monitoring the supplier risks, anticipating potential disruptions, and preparing mitigation plans to minimize their impact are becoming essential business requirements to survive in supply chain turbulence for private and public organizations of any size. 

This project aims to develop a digital framework for diagnosing the vulnerability of multi-tier supply chain networks and strengthening their resilience. The framework will be developed in four phases as planned for SFI Digital for Resilience challenge. In the Concept phase, an extensive number of interviews and workshops will be conducted with Irish and international organizations for requirement analysis and elicitation. A prototype of the solution will be developed in the Seedling phase. The solution will be validated and made deployment-ready in Grow and Prize phases respectively. Utilization of the developed framework will have a direct impact on enhancing private and public organizations' resilience against disruptions. See SFI announcement for the project.