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Header_AI Use Case of the month in June 2025 by Alexander Thamm GmbH

Supply Chain Risk Prediction

Use Case Use Case Family: NLP, Predictive Analytics & Forecasting, Anomaly Detection
Business Domain Business Domain: Procurement
Process Processes: Supplier risk assessment
Challenge:

Global supply chains are increasingly volatile. Risks such as delayed deliveries, supplier financial instability, or geopolitical issues are often identified too late, leading to potential disruptions. Traditional risk assessments are often static or outdated and fail to provide a holistic view in an ever-changing environment. Real-time, data-driven monitoring is still rarely used.

Solution:

An AI-powered Business Decision Analytics model leverages internal and external data sources to continuously assess suppliers. The system uses anomaly detection to identify unusual patterns in financial reports, compliance data and supplier performance. Predictive risk scoring assesses the likelihood of future supplier defaults. NLP-based analytics scan contracts, news articles and regulatory documents to identify hidden risks such as compliance violations or geopolitical tensions at an early stage. Risk scores are updated continuously and directly inform strategic sourcing decisions.

Sources & further example in defence: DLA 2025;

Benefits:
  • Transparent decision-making for procurement teams
  • Optimized supplier selection, reducing dependency on high-risk sources.
  • Increased supply chain resilience through AI-driven risk analysis.
  • Early identification of potential disruptions, allowing proactive responses.
  • Lower financial losses by mitigating unforeseen supply chain risks.
Target Group Target Group:
Supply chain managers Risk analysts Procurement teams
Potential Industries Potential Industries:
Automotive Manufacturing Pharmaceutical & Healthcare Defense & Security
No Risk
No Risk systems The EU AI Act does not apply for defense or national security purposes (Article 2(3)). High risk for use in critical infrastructure Article 6 (2)
No transparency obligantions
Disclaimer The information provided regarding the risk assessment is without guarantee. The complete classification of a use case according to the EU AI Act depends on numerous regulatory and company-specific factors. Therefore, the risk assessment is always case-specific. The risk assessment logic of Casebase is used for this purpose.