LLM-Agentic Data Acquisition and Supply Chain Modeling
Cocoa, the key ingredient in chocolate, saw a 172% price surge in 2024, highlighting the opacity and information asymmetry in its supply chain. The complexity of cocoa's value chain, with misaligned stakeholder incentives across legal and geographic contexts, has made supply chain modeling difficult. This lack of transparency burdens manufacturers with higher costs, challenges traders with margin calls, and leaves even the International Cocoa Organization (ICCO) struggling to identify the drivers of volatility. Fragmented and underutilized data—from geospatial information to financial transactions—further compounds the issue.
We propose integrating knowledge graphs with large language models (LLMs) to address these challenges. Knowledge graphs provide structured, dynamic representations of entities and relationships, while LLMs synthesize unstructured data for analysis. Together, they can enhance transparency, enable data-driven decision-making, and equip stakeholders with actionable insights, offering a critical step toward addressing systemic inefficiencies in cocoa's global market.
The early 2020s saw a surge in commodity prices driven by inflation, supply chain disruptions, and trade wars, emphasizing the need for supply chain transparency. Cocoa, largely produced in Côte d'Ivoire and Ghana, faces challenges like traceability, weather impacts, and deforestation, leading to regulations like the EU Deforestation Regulation (EUDR).
While initiatives like Ferrero's efforts and the Cocoa & Forests Initiative (CFI) aim to improve transparency, supply chains remain opaque due to fragmented and static datasets. Projects such as Trase offer insights but lack real-time updates and fail to map smaller actors, limiting comprehensive traceability.
To address these gaps, innovative solutions like real-time forecasting, predictive models, and tools like knowledge graphs (KGs) and large language models (LLMs) are key. Integrating physical models with digital datasets can enhance transparency. LLMs can further automate source identification, validate data, and streamline research, enabling faster progress in supply chain transparency and efficiency.
This work focuses on automating source identification, enabling real-time forecasting, and managing rare supply chain events using two components:
This study demonstrates the potential of integrating knowledge graphs and LLMs to address opacity in the cocoa supply chain.
Key findings include:
Learn how RISO Data's knowledge graph and LLM solutions can enhance your supply chain transparency and efficiency.
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