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  • Writer's pictureChristine Bear

How will AI play out for the supply chain and logistics industry?

Updated: Feb 24, 2020

Whether you sink or swim in the supply chain and logistics industry could come down to two words: Artificial Intelligence (AI). Those who take the leap now and start to apply AI insights and utilise unstructured data analysis in different areas of their business, will win out over their competitors.

John Langley, Clinical Professor of Supply Chain Management at Penn State’s Smeal College of Business sums it up perfectly:

“All of this added computing power can be focused on making better decisions, not only from an overall strategic and resource planning basis, but in real-time decisions.”

AI is worth every cent, and more

The Forbes Insights survey shows that the expected benefits of incorporating AI technologies in supply chains mitigates the costs of implementation. So there is little reason not to do it.

Cognitive AI will add exponential value to businesses with the value and outcomes of:

  • Reducing risk

  • Increasing revenue growth

  • Transforming the operating model

  • Increasing operational efficiency

  • Increasing workforce productivity

  • Higher quality at lower costs

  • Increasing ongoing innovation

  • End-to-end clarity across the value chain

  • Plus, the ability to anticipate customer needs.

Will AI be your next investment?

The extensive connectivity provided by AI will enable worldwide networks of supply chains to plan and make intelligent decisions together, according to The IBM Institute for Business Value.

After surveying outperforming supply chain executives, they found more than half said their top investments in the next three years would be Cognitive or Cloud. Industry professionals I have talked to agree, and can easily list the many areas where Cognitive AI will add huge value to their business. These include:

  • Improving risk management and risk assessment

  • More breadth and depth of freight flow information

  • Managing compliance

  • Much wider knowledge of customer

  • More effective knowledge transfer internally – including across geographies

  • Wider knowledge of market information and business solutions.

So, now is the time to dive a little deeper into the AI discussion and look at how it will benefit your business. We’re always happy to talk about our favourite subject - give me a call on +6421882405 or email today.

Christine Bear | Founder & Managing Director | CAITO


‘How artificial intelligence and machine learning are revolutionising logistics, supply chain and transportation’. Retrieved from Forbes (Sep, 2018).

‘Logistics, supply chain and transportation 2023: Change at breakneck speed’. Retrieved from Forbes (2018).

IBM Welcome to the cognitive supply chain © Copyright IBM Corporation 2017, IBM Institute for Business Value.

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