Data-Driven Supply Chain Transformation Through Multi-Layer Predictive Intelligence: A Self-Adaptive Procurement Optimization System with Real-Time ERP Integration

Authors

  • Taiwo Ruth Owoeye

    Address: Department of Business and Economics, Lincoln University, Oakland, CA, USA
    Author
  • Sharon Oluwaseun

    Tennessee Wesleyan University Business Department, Athens, Tennessee, USA
    Author
  • Arti Raikwar

    Industrial Technology and Management, Armour College of Engineering, Illinois Institute of Technology, Chicago, USA
    Author
  • Chinyan Blessing

    Faculty of Business Administration, Imo State University, Imo State, Nigeria
    Author

Abstract

Resilient supply chains increasingly depend on intelligent systems capable of real-time adaptation rather than static, pre-defined optimization rules. This study proposes a multilayer predictive intelligence framework that autonomously adjusts procurement decisions through continuous ERP synchronization, departing from conventional periodic decision-support architectures. The system integrates three computational layers: (i) a demand forecasting module based on ensemble learning, achieving a 43.3% reduction in forecasting error (MAPE reduced from 21.7% to 12.3%), (ii) a supplier intelligence layer incorporating sentiment analysis of transactional communications and external risk signals, and (iii) a mixed-integer optimization engine that simultaneously minimizes procurement cost, inventory holding cost, and stockout risk under dynamic constraints.

The framework was implemented in a medium-sized manufacturing enterprise managing 342 suppliers, 1,247 SKUs, and an average monthly procurement volume of 2,847 orders. Empirical results over a 12-month operational period demonstrated a 67.1% reduction in stockout incidents (from 23.4 to 7.7 per month), a 22.9% reduction in average inventory holding period (from 47.2 to 36.4 days), and a 6.6% reduction in total procurement costs (from $5.58M to $5.21M per month). Expedited logistics costs decreased by 57.8%, while on-time delivery performance improved from 83.4% to 91.8%.

The system achieved a 99.3% operational uptime with an average end-to-end decision latency of 340 milliseconds (95th percentile: 580 ms), enabling near real-time response to supply chain events. The closed-loop automation framework autonomously resolved 89% of procurement anomalies, while only 11% required human escalation, primarily for high-value or structurally constrained decisions. Forecast accuracy improvements and dynamic safety stock recalibration contributed significantly to system-wide efficiency gains, including a 23% reduction in inventory levels and improved working capital utilization.Beyond performance improvements, the study demonstrates a structural shift in procurement operations, where analysts transition from transactional execution roles to strategic governance and exception management. The findings highlight that the value of intelligent supply chain systems lies not only in algorithmic accuracy but in the integration architecture that enables continuous learning, real-time ERP synchronization, and autonomous decision execution. The results challenge the traditional assumption that increased system complexity reduces operational reliability, demonstrating instead that carefully designed multi-layer intelligence systems can simultaneously improve efficiency, responsiveness, and stability in mission-critical supply chain environments. 

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Published

2026-03-30

How to Cite

Data-Driven Supply Chain Transformation Through Multi-Layer Predictive Intelligence: A Self-Adaptive Procurement Optimization System with Real-Time ERP Integration. (2026). Applied Science, Computing, and Energy, 4(2), 310-333. https://cemrj.com/index.php/volumes/article/view/191