**Global supply chains**: AI adoption in supply chain management is accelerating, with companies like PepsiCo, Southern Glazer’s, and Werner Enterprises reporting significant improvements in efficiency, forecasting accuracy, safety, and operational control. Early adopters leverage AI-driven robotics, data consolidation, and predictive analytics for competitive advantage.
In recent years, artificial intelligence (AI) has begun to significantly transform supply chain operations, with several companies reporting notable enhancements in efficiency and operational metrics. Keith Moore, CEO of AutoScheduler, emphasises that as of 2025, many warehouse workers still depend on outdated manual tools to gather data. However, with AI, businesses can consolidate their data into a single repository, allowing for better decision-making and fostering increased productivity.
AI’s potential has been recognised throughout various sectors, though adoption remains in its early stages. Moore predicts that over the next five years, AI solutions will become mainstream within supply chains. Companies that quickly adopt AI can position themselves advantageously in a competitive landscape.
PepsiCo has implemented an orchestration system from AutoScheduler at its warehouses to enhance operational efficiency. The complexity of their warehouse operations necessitated that experienced workers manage product movement. However, the disruption caused by the pandemic led to a decline in experienced staff. The adoption of AI has enabled PepsiCo to streamline these processes, resulting in a reported 12% increase in product movement per hour.
Similarly, Southern Glazer’s Wine & Spirits (SGWS), a significant distributor with operations across 47 U.S. markets, has integrated AI to refine sales forecasts. According to Diego Fonseca, the company’s vice president of supply chain and logistics, the application of Amazon’s SageMaker AI solution has enabled planners to generate demand forecasts by analysing historical data, promotional events, and seasonal trends. This AI-driven approach has improved forecast accuracy, with 2024 projections consistently exceeding previous estimates by approximately six points.
In mid-2024, Werner Enterprises introduced GenLogs to mitigate issues related to unauthorized trailer use and missing equipment. Daragh Mahon, executive vice president and CIO, noted that the implementation of AI has drastically reduced the time required to locate missing trailers from days or weeks to hours, simultaneously improving overall operational control.
Standard Logistics also turned to AI as a tool for optimising loads and enhancing efficiency. Utilising technology from Optimal Dynamics since 2021, the company can now determine which loads to accept and efficiently assign drivers based on demand and availability. Volker Bargenda, president of Standard Logistics, reported a correlation between the use of AI and increased revenue per driver, illustrating the positive financial impact of AI-driven decisions.
At CJ Logistics America, the implementation of AI technology has contributed to enhanced employee safety within large warehouse environments. Laura Adams, senior vice president of continuous improvement, shared that partnerships with tech companies like OneTrack have enabled better monitoring of worker actions, cutting potential safety events by nearly 75% while also increasing productivity.
On the administrative side, DISA Global Solutions adopted an AI solution from HyperScience to manage document processing more efficiently. Steven Spencer, the company’s senior vice president of strategy, explained that implementing AI has enabled DISA to achieve a 99.5% accuracy rate in document classification while expediting processes crucial for compliance and operational continuity.
Adopting AI effectively requires careful consideration of specific challenges and organisational goals. Moore recommends that companies identify the right problems for AI solutions, prioritise change management, and ensure transparency from AI providers. Flexibility remains important, as the AI landscape continues to evolve, enabling companies to refine their processes in response to new developments.
In addition to operational improvements, companies have started leveraging AI for warehouse robotics. Agility Robotics’ humanoid robot, Digit, utilises AI for real-time perception and decision-making, which significantly enhances warehouse interactions. Amazon’s Sequoia system capitalises on AI and robotics to optimise inventory management in fulfilment centres, while other firms like Ambi and Boston Dynamics are advancing the capabilities of robotics through machine learning and AI-enhanced systems.
As AI technology continues to develop, its applications in supply chain management are expected to expand, providing substantial returns on investment for early adopters in an increasingly complex market landscape. Companies are thus encouraged to explore AI solutions not only to enhance efficiency but also to drive innovation across their operations.
Source: Noah Wire Services