**London**: The logistics industry is set for transformation through AI and automation in supplier management, enhancing visibility and fraud detection while optimising electric vehicle usage. Experts stress the importance of a skilled workforce to integrate new technologies effectively as companies adapt to evolving market demands.
The logistics industry is poised for significant transformation as it embraces automation technology, particularly generator AI, in supplier relationship management (SRM) and operations. As businesses prepare for a more positive outlook in 2025, the potential for machine learning and AI to streamline processes and improve relationships with suppliers is gaining traction.
With the increasing complexity of global supply chains, having complete, real-time visibility has become paramount. According to a recent report by McKinsey, 55% of supply chain leaders are intending to invest more in AI-based tools to enhance visibility. The report highlights that this technology can analyse both structured and unstructured data from various supplier tiers to generate real-time risk analyses.
In an effort to improve supplier relationships, Semantic Visions, an analytics firm, is developing a multitier mapping tool that utilizes AI and natural language processing. This technology aims to uncover intricate supplier relationships and automate compliance tasks, including monitoring sanctions and environmental, social, and governance performance within supplier networks. Julius Rusnak, COO of Semantic Visions, explained how their technology empowers customers by enabling them to “mitigate risk, find new opportunities and build greater resilience.”
The logistics sector is also grappling with persistent fraud issues. AI tools are proving effective in identifying fraudulent activities across the supply chain as tactics evolve. Chris McLoughlin, senior director of operations for risk and compliance at Uber Freight, explained how the company employs predictive analytics throughout the onboarding process, analysing various data points to raise flags for human review. He noted the importance of adaptability in evaluating performance, stating, “we will make adjustments to how we are evaluating that entity’s performance.”
Further demonstrating the capabilities of AI, the startup GenLogs employs computer vision and predictive analytics to track and detect potential fraud in real-time. CEO Ryan Joyce explained that their methodology is akin to counterterrorism operations, allowing them to identify criminal activity and ultimately dismantle fraud networks. He asserted that their goal is not only to disrupt criminal activities but to gather enough evidence to take down entire networks.
Another significant area of development within the logistics sector is the adoption of electric vehicle (EV) fleets. While transitioning to EVs is vital for reducing the industry’s environmental footprint, it presents operational complexities. Sami Khan, co-founder and CEO of the all-electric fleet company Nevoya, pointed out that optimising the use of electric trucks requires advanced technology to manage routes, evaluate timing for trailer drops, and determine charging needs. He stated, “Running an electric vehicle fleet is an incredibly complex problem,” indicating that without AI-driven technology, efficient management would be nearly impossible.
Nevoya also identifies opportunities to automate non-revenue related tasks. Daily inquiries from brokers and shippers pose significant time management challenges for logistics providers. Kevin Nolan, founder of Nolan Transportation Group and logistics investment firm Sope Creek Capital, commented on the transformative potential of automation in alleviating brokers from repetitive, non-revenue generating tasks. He noted, “AI isn’t going to win business, but it will make humans so much more efficient in what they are working on.”
In a competitive landscape, logistics providers are increasingly developing proprietary automation tools and AI-driven analytics to leverage data across their clients. Chris Fields, vice president of sales at Zelh Logistics, emphasized their aim to provide logistics companies with a competent workforce skilled in both logistics and technical knowledge, ensuring capabilities are enhanced through strategic outsourcing.
While advancements in AI and automation are reshaping the industry, there remains a school of thought advocating for the development of human competencies. Don Everhart, head of partnerships and strategy at Transflo, highlighted the importance of a skilled workforce that can integrate these tools into daily practices effectively, urging logistics providers to focus on long-term strategies for employee development.
As logistics companies navigate these advancements, the collaboration of AI tools in SRM is expected to yield insights that significantly enhance supplier relationships, streamline operations, and ultimately foster a more resilient logistics landscape.
Source: Noah Wire Services
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