Research on the Impact of AI Technology Development on the Transformation of Logistics Management in the Tobacco Industry - Take China National Tobacco Corporation (CNTC) as a Case

Mingzheng Du

doi:10.54097/d9687x29

Authors

Mingzheng Du University of Nottingham Ningbo China, Ningbo, China

DOI:

https://doi.org/10.54097/d9687x29

Keywords:

Artificial intelligence, digital transformation, the tobacco industry’s logistics.

Abstract

The tobacco industry is a significant component of China's economy, contributing approximately 7% to 10% of the country's GDP in 2024 through tax revenue and profits amounting to 1.6008 trillion yuan. However, the traditional logistics system faces major challenges in meeting modern operational demands. This study explores the theoretical basis of applying artificial intelligence in supply chain management, with a focus on the application of large language models (LLM) and genetic algorithms (GA) in the tobacco logistics system managed by the China National Tobacco Corporation (CNTC), which adopts a centralized three-level organizational structure. The digital transformation of China's tobacco industry began in 2000, progressing through modernization, informatization, and intelligence stages, supported by technologies such as the Internet of Things (IoT) and Radio Frequency Identification (RFID). The research findings indicate that AI technologies have significantly enhanced tobacco logistics through multiple mechanisms: LLM has boosted warehouse operation efficiency; GA has optimized transportation routes; the hierarchical organizational structure has helped address the issue of information silos; and the integration with complementary technologies has amplified the operational improvement effects. The study concludes that AI technologies have positively impacted the digital transformation of China's tobacco logistics by enhancing data processing capabilities, organizational optimization, and technological integration.

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