MOEA-supported AI-driven supply chain innovation has once again gained recognition internationally. As global manufacturers face heightened challenges from geopolitical tensions, wars, and tariff disruptions, the Department of Industrial Technology (DoIT) under the Ministry of Economic Affairs (MOEA) has been proactively advancing smart manufacturing and supply chain resilience technologies. Emphasizing cross-disciplinary integration, DoIT supported the Institute for Information Industry (III) in developing the “Generative AI Supply Chain Interactive Optimization System”, an innovation that functions like an on-call AI consultant for supply chain operations. The system integrates several intelligent functions such as AI-based decision-making, order forecasting, and inventory management, while also incorporating generative AI Q&A capabilities and Retrieval-Augmented Generation (RAG) technology. It effectively addresses issues such as excessive stockpiling triggered by raw material shortages, rescuing businesses from the predicament of shifting from material shortage panic to inventory pressure, and boosts inventory turnover by 20%. On August 19, the technology won the 2025 WITSA Global Award, often referred to as the “Oscars of ICT.” The innovation is set to be introduced across diverse manufacturing sectors in Taiwan to enhance supply chain resilience and competitiveness.
Broadening Adoption Across Industries, Technology Wins Global Recognition
As global uncertainties intensify, supply chain instability now triggers not only production delays caused by shortages but also inventory pileups driven by falling demand—leaving warehouses full and cash flows constrained.
To address these pressing challenges, DoIT supported the Digital Transformation Research Institute (DTRI) of III in developing the “Generative AI Supply Chain Interactive Optimization System”, which has already been implemented by several manufacturers across metal processing and electronic manufacturing services (EMS).
For example, one hardware–furniture manufacturer used the system to forecast safe stock levels for key materials and predict order trends. Combined with smart scheduling and on-site quality management modules, the entire plant upgraded its smart manufacturing capacity, improving on-time delivery performance by 9%. Similarly, an aluminum extrusion manufacturer, which also belongs to the metal processing industry, deployed the system to accurately predict material usage, reducing the cost impact of excess stock. EMS companies introducing the technology benefit immensely from end-to-end forecasting and diagnosing—from the front end procurement and production to the back end sales—enhancing their ability to respond quickly to labor shortages, demand fluctuations, and sustainability pressures. The multiple advantages were key to the system’s success on winning the international recognition this time.
AI as Your Risk-Avoiding Inventory Advisor: III Drives Next-Generation Resilient Supply Chains
The core strength of the “Generative AI Supply Chain Interactive Optimization System” lies in its integration of generative AI dialogue with supply chain forecasting. It features adaptive decision-making, explainable prediction models, raw-material diffusion analysis, and a multi-module architecture. Users can obtain instant recommendations simply by asking questions in natural language—significantly reducing the barrier to operation and improving decision-making efficiency. Looking ahead, III plans to expand the system to additional sectors, including food manufacturing and textiles, helping Taiwan’s manufacturing industry accelerate its supply chain responsiveness and resilience and sustaining its competitive edge amid fast-shifting global market conditions.
III President Chun-I Fan expressed that it was an honor to receive the significant award with the “Generative AI Supply Chain Interactive Optimization System”, which brings Taiwan’s AI supply chain innovations to global attention. He noted that traditional experience-based stockpiling methods can no longer address the complexity of current international dynamics. By integrating smart forecasting and real-time interaction via AI, enterprises can better anticipate risks and optimize inventory decisions. Fan further indicated that this WITSA award marks only the beginning, and the III will continue to drive the adoption of practical technologies across manufacturing settings, enabling industries to build resilient supply chains capable of early warning, rapid response, and self-learning.