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AI-driven supply chain: investigating the impact of artificial intelligence on supply chain operations for the Egyptian retail and e-commerce market
Abstract
Purpose: This research aims to examine the impact of artificial intelligence implementation on supply chain operations, in particular demand forecasting and inventory management, in the Egyptian retail industry. In a modern supply chain, digitalization plays a vital role in integrating advanced technologies into supply chain processes. The use of digital technologies allows organizations to achieve better operational efficiency, monitor supply chain practices, make data-based decisions, and respond rapidly to market fluctuations.
Design/Methodology/Approach: The research design employed mixed methods; a qualitative research design was conducted through seven semi-structured interviews with people holding managerial and operational roles in selected retail companies that have incorporated artificial intelligence applications into their supply chain operations. A quantitative research design was conducted using online surveys sent to employees of retail firms that were currently using AI in their supply chains.
Findings: The findings of this study indicate that artificial intelligence implementation has a significantly positive impact on supply chain operations, which leads to better demand forecasting and inventory management. The results also imply improvements in decision-making and supply chain visibility, minimization of forecast errors, and optimization of inventory. The findings of the interviews align with this conclusion because industry experts stated that applying artificial intelligence improved supply chain performance.
Research implications/limitations: Due to the low adoption rate of artificial intelligence in the Egyptian retail sector, the sample size and participant availability were limited. Moreover, the focus on a single industry and geographic context limits the applicability of the findings. Future research must enlarge the proposed framework across various industries and regional samples to evaluate and validate the relevance of the results.
Practical implications/limitations: The study offers practical and visible benefits for retail organizations to use artificial intelligence tools for real-time data and prospective analysis. By achieving these results, organizations can reduce forecasting errors, improve inventory levels, and enhance operational efficiency across the supply chain.
Originality: The research presents a detailed analytical and in-depth understanding of how AI affects supply chain operations in the Egyptian retail industry. It recommends a framework for other developing countries aiming for smart supply chain transformation.
Keywords: Artificial Intelligence, Demand Forecasting, Egyptian Retail Sector, Inventory Management, Operational Efficiency, Supply Chain Management.
Received 13 July 2026
Accepted 09 September 2026
Published 27 September 2026
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DOI: https://dx.doi.org/10.21622/IBL.2026.06.2.2318
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Copyright (c) 2026 Shaza Alaa Tolba, Sahar Elbarky, Hebatallah Elmesmary
International Business Logistics
E-ISSN: 2735-5969
P-ISSN: 2735-5950
Published by:
Academy Publishing Center (APC)
Arab Academy for Science, Technology and Maritime Transport (AASTMT)
Alexandria, Egypt
