AI-Driven Supply Chain Decarbonization: Strategies for Sustainable Carbon Reduction
Abstract
1. Introduction
2. AI-Powered Methodologies for Achieving Supply Chain Decarbonization
| Decarbonization Lever | Primary AI Methodology | Key Data Inputs | Primary Carbon Impact | Key Implementation Challenge |
|---|---|---|---|---|
| Transportation and Logistics [24,25,26] | Vehicle Routing Problem (VRP) solvers; Heuristic Optimization (Genetic Algorithms, Enhanced Particle Swarm Optimization) | GPS coordinates, traffic feeds, order manifests, vehicle capacity, fuel consumption rates | Reduction in direct fuel consumption through optimized routing, improved fleet utilization, and lower idle times | High computational cost with 5–10% routing errors in rural Tunisia due to sparse GIS data; real-time integration failures in 3% of cases |
| Manufacturing and Production [29,30,31] | Convolutional neural networks (CNNs) for defect detection; Predictive Maintenance (LSTMs, Ensemble Models) | Production line imagery, IoT sensor readings (temperature, vibration, energy usage), machine logs | Reduction in embedded carbon via lower defect rates; minimized downtime and energy inefficiencies | Significant initial investment with 7–12% labeling errors in Tunisian textile imagery; IoT setup delays in 15% of facilities |
| Inventory and Demand Management [27,28,32] | Time-Series Forecasting (ARIMA, LSTMs); Stochastic Inventory Optimization Models | Historical sales records, promotional calendars, macroeconomic indicators, and supplier lead times | Reduced emissions from overproduction, obsolete stock waste, and unnecessary redistribution | Forecast accuracy drops under high volatility; errors can amplify upstream (bullwhip effect) |
| Sourcing and Supplier Management [33,34] | NLP for ESG report analysis; Supplier Risk Scoring Models (SVM, XGBoost) | Supplier ESG disclosures, audit reports, sustainability ratings, media coverage | Mitigation of Scope 3 emissions through selection of low-carbon suppliers; enhanced supply chain resilience | Dependence on unstructured, often unverifiable third-party data; susceptibility to “greenwashing” |
| System-Wide Network Design [35,36] | Digital Twins for supply chain simulation; Reinforcement Learning for strategic policy optimization | Facility geolocations, transport lanes, production capacities, regional carbon intensity of energy grids, and carbon pricing | Long-term structural emission avoidance via optimized network footprint and location strategy | Requires massive data integration; high financial and computational burden |
| Waste Management and Circular Economy [37,38] | AI-enabled waste classification (Computer Vision, ML classifiers); Predictive Waste Collection Optimization | Waste composition data, geospatial collection routes, and recycling facility throughput rates | Reduced landfill emissions and improved recycling rates through optimized collection and sorting | Variability in waste streams challenges model generalization; infrastructure readiness constraints |
| Energy Management in Transport [39] | AI-driven charging optimization for EV fleets; Energy Demand Prediction Models | Real-time battery state-of-charge, trip schedules, charging station availability, and electricity pricing | Reduced indirect CO2 emissions by integrating renewable energy in charging schedules; improved vehicle uptime | Grid integration complexity; need for synchronized vehicle and energy system data |
2.1. Operational Optimization Models
2.1.1. Logistics and Routing Optimization Models
2.1.2. Smart Energy Management Systems
2.1.3. Real-Time Process and Quality Control Models
2.2. Strategic Statistical and Machine Learning Models
2.2.1. Classical Time-Series Models
2.2.2. Persistence Models
2.3. Advanced Machine Learning Methods
2.3.1. Supervised Learning for Classification and Regression
2.3.2. Deep Learning and Ensemble Methods
2.4. Systemic and Hybrid AI Models
3. Results
3.1. Agri-Food and Textile Supply Chains
3.1.1. Context
3.1.2. Quantitative Outcomes
3.1.3. Efficiency Gains
3.1.4. Cost–Benefit Analysis
3.2. Port Logistics at Rades
3.2.1. Context
3.2.2. Quantitative Outcomes
3.2.3. Efficiency Gains
3.2.4. Cost–Benefit Analysis
3.3. Comparative Analysis and Scalability
3.3.1. Quantitative Comparison
3.3.2. Efficiency Gains
3.3.3. Scalability Potential
3.3.4. Indirect Contributions
4. Discussion
| Barrier | Impact on Decarbonization | Proposed Solutions or Best Practices |
|---|---|---|
| Data Quality and Accessibility [1,3,6] | Inaccurate, incomplete, or incompatible data lead to flawed AI models and ineffective decarbonization strategies. Poor interoperability between disparate data sources hinders decision-making. | Invest in robust data governance; deploy advanced data cleaning and validation techniques; implement data integration platforms with standardized formats. |
| High Computational Cost and Carbon Footprint of AI [4,8,12] | The high energy consumption of training and running complex AI models can offset the carbon savings achieved through supply chain optimization. | Adopt lightweight AI methods (TinyML, model pruning, knowledge distillation); use energy-efficient hardware; schedule intensive computations during periods of renewable energy availability. |
| Lack of AI Talent and Skills [2,7,15] | A shortage of professionals skilled in both AI and supply chain management delays or prevents successful model deployment. | Launch upskilling and reskilling programs; partner with universities for talent pipelines; leverage low-code/no-code AI solutions to reduce skill barriers. |
| Organizational Resistance and Lack of Trust [5,13,14] | Fear of job loss, limited understanding, and the “black box” nature of AI reduce stakeholder buy-in, slowing adoption. | Implement Explainable AI (XAI) frameworks; involve stakeholders in co-design and validation processes; start with small-scale pilots to demonstrate value. |
| System Integration and Legacy Systems [2,11,15] | Integrating AI with outdated IT infrastructure is complex, time-consuming, and costly, delaying operationalization. | Use a modular, API-first integration strategy; plan phased migration from legacy systems; adopt middleware to bridge compatibility gaps. |
| Economic Constraints and High Initial Costs [6,12,14] | Significant capital is needed for technology acquisition, training, and integration, creating barriers for SMEs and resource-limited organizations. | Conduct cost–benefit analyses; seek joint ventures, public–private partnerships, or innovation grants; implement AI in incremental phases to spread costs. |
| Change Management Challenges [5,13,15] | Without structured change management, resistance to process transformation can undermine AI implementation. | Develop formal change management frameworks; communicate benefits clearly; assign AI adoption champions within the organization. |
| Ethical and Social Implications [1,5,7] | Potential bias in AI algorithms, privacy concerns, and workforce displacement risks can damage organizational reputation and hinder adoption. | Establish ethical AI guidelines; perform algorithmic bias audits; implement transparent data usage policies; create workforce transition plans. |
5. Conclusions
Author Contributions
Funding
Institutional Review Board Statement
Informed Consent Statement
Data Availability Statement
Conflicts of Interest
Abbreviations
| Abbreviation | Definition |
| AI | Artificial Intelligence |
| ARIMA | Autoregressive Integrated Moving Average |
| CBAM | Carbon Border Adjustment Mechanism |
| CDR | Carbon Dioxide Removal |
| CNN | Convolutional Neural Network |
| ERP | Enterprise Resource Planning |
| ESG | Environmental, Social, and Governance |
| GHG | Greenhouse Gas |
| IoT | Internet of Things |
| LSTM | Long Short-Term Memory |
| MENA | Middle East and North Africa |
| NDC | Nationally Determined Contribution |
| NLP | Natural Language Processing |
| OCR | Optical Character Recognition |
| RL | Reinforcement Learning |
| SHAP | SHapley Additive exPlanations |
| SARIMA | Seasonal Autoregressive Integrated Moving Average |
| SVM | Support Vector Machine |
| VRP | Vehicle Routing Problem |
| XAI | Explainable Artificial Intelligence |
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| Model Type | Description | Strengths | Weaknesses | Typical Use Cases | Data Requirements | Computational Cost |
|---|---|---|---|---|---|---|
| Operational AI [40] | Focuses on real-time optimization of physical processes by embedding AI in control systems, often leveraging sensor data for instant decision-making. | Delivers immediate, quantifiable efficiency and avoided emissions reductions; excels in dynamic, stimulus-response environments. | Limited ability to address long-term systemic challenges; requires continuous access to high-quality, real-time data streams. | Logistics route optimization, industrial process control, and smart energy distribution. | High-frequency, granular operational data from IoT devices, GPS, and SCADA systems. | High |
| Strategic AI [41,42] | Employs AI to support long-term organizational goals, scenario analysis, and competitive positioning; integrates governance and ethical frameworks into planning. | Enhances forecasting accuracy, supports scenario modeling, and aligns technology adoption with corporate strategy. | Struggles with abrupt disruptions and volatile market conditions; requires strong stakeholder engagement. | Demand forecasting, inventory policy optimization, and strategic network design. | Large historical datasets, macroeconomic indicators, and structured performance records. | Low–Moderate |
| Hybrid AI [43,44,45,46] | Integrates multiple AI techniques (e.g., ML, rule-based systems, symbolic AI) to combine the precision of operational AI with the foresight of strategic AI; often includes human-in-the-loop decision-making. | Combines tactical precision with strategic insight; balances accuracy with interpretability; adaptable across domains. | High system integration complexity; very high computational requirements; requires multi-domain datasets. | AI-powered supply chain control towers, digital twins, and crisis management platforms. | Large-scale, heterogeneous datasets combining real-time and historical data. | Very High |
| Sector | AI Application | Carbon Impact | Challenges | Cost–Benefit (TND) |
|---|---|---|---|---|
| Agri-food exports | VRP logistics optimization | −12–15% fuel emissions (200–300 tCO2/year) | Limited rural GIS data; legacy system integration | 152,500 setup; 61,000–91,500/year savings |
| Cold-chain logistics | LSTM demand forecasting | −15–20% diesel; +60% solar (50–100 tCO2/year) | Seasonal variability; model retraining | 91,500 setup; 30,500–45,750/year savings |
| Textile industry | NLP-based LSTM analysis | −10–12% Scope 3 emissions | Limited ESG data; multilingual NLP constraints | 61,000 setup; 15,250–30,500/year savings |
| Parameter | Value | Unit | Source/Assumption |
|---|---|---|---|
| Annual truck visits | 250,000 | trips/year | Rades 2024 data [82] |
| Idle time reduction | 0.5 | h/trip | AI scheduling pilot [83] |
| Diesel consumption | 2.0 | L/h | Heavy-duty truck average |
| Emission factor | 2.68 | kg CO2/L | IPCC default |
| CO2 avoided per truck | 2.68 | kg CO2/trip | Calculation |
| Annual CO2 avoided | ~670,000 | kg CO2/year (670 tCO2) | Validated by TOS pilot [84] |
| Case Study | Scope | Annual CO2 Avoided (t) | Key Driver |
|---|---|---|---|
| Agri-food/textile (VRP, LSTM, NLP) | Firm-level | 10.8–300 | Reduced distance, energy use, and Scope 3 emissions |
| Port of Rades (RL, OCR, Digital Twin) | System-level | 670–1000 | Reduced idling, systemic optimization |
| Case Study | AI Type | Scope | Normalized KPI | Payback Period (Years) |
|---|---|---|---|---|
| Agri-food (VRP) | Operational | Firm-level | ≈90 kg CO2 saved per vehicle per year | ≈2.0 |
| Port of Rades (OCR) | Operational | System-level | 2.68 kg CO2 saved per truck visit | ≈1.5–2.0 |
| Port of Rades (Digital Twin) | Hybrid | System-level | ≈3.2–4.0 kg CO2 saved per truck visit (system-wide) | ≈2.0 |
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Frikha, M.A.; Mrad, M. AI-Driven Supply Chain Decarbonization: Strategies for Sustainable Carbon Reduction. Sustainability 2025, 17, 9642. https://doi.org/10.3390/su17219642
Frikha MA, Mrad M. AI-Driven Supply Chain Decarbonization: Strategies for Sustainable Carbon Reduction. Sustainability. 2025; 17(21):9642. https://doi.org/10.3390/su17219642
Chicago/Turabian StyleFrikha, Mohamed Amine, and Mariem Mrad. 2025. "AI-Driven Supply Chain Decarbonization: Strategies for Sustainable Carbon Reduction" Sustainability 17, no. 21: 9642. https://doi.org/10.3390/su17219642
APA StyleFrikha, M. A., & Mrad, M. (2025). AI-Driven Supply Chain Decarbonization: Strategies for Sustainable Carbon Reduction. Sustainability, 17(21), 9642. https://doi.org/10.3390/su17219642

