AI intends to revolutionize supply chain logistics by tackling a long -standing challenge that has plagued the industry for decades: the lack of seamless data integration in a large and fragmented network. Logistics involves coordination between numerous entities – suppliers, carriers, brokers and tractor providers – anyone working with its own systems, processes and data formats.
For years, the industry has struggled to unite this data in a common language. Attempts such as 10 standards bodies and middleware solutions tried to bridge the gap, but no one had widespread success. As a result, logistics remains very dependent on unstructured, tailed data – Exails, excel files, PDFs – that flood in the inkasses daily. Critical information is buried in thousands of messages, which need manual withdrawal and re -paid in different systems.
This process is not only time consuming, but also introduces errors, delays and inefficiencies that impede software performance. AI has the potential to eliminate these bottlenecks by automating data withdrawal, interpretation and integration, and transforms how logistics works.
‘The information we are talking about here is critical. It is not just routine data -these are invoices that need payment, essential documents for customs approval, or shipping details that, if missed, can cause major disruptions. If a customs document does not show up in time, a consignment is stuck. If a reservation is changed – say, a terminal or airport gate is re -allocated – but the update is buried in a flood of email, the consignment with no aircraft or truck can be ready to move it, ”Said RAFT chief marketing officer Greg Kefer.
“When that happens, logistics teams are forced into crisis mode, and scrambled to detect consignments and arrange solutions at the last moment at a significant cost. This constant firefighting is not just a daily operational headache; This leads to incredible financial waste, possibly dozens of billions of dollars throughout the industry. The root of the problem is simple and complicated: Critical information is trapped in unstructured, tailed communication channels, leading to inefficiencies that ripple throughout the supply chain. “
The next generation
One of the biggest challenges in logistics today is to attract new talent – there are simply not enough young professionals entering the field. The next generation of logistics professionals grew up with smartphones, voice commands and automation. It is not used to tapping everything by hand, let alone to enter outdated processes such as reading email, handling paper documents and the hand of data in 30-year systems. It is not dynamic or fascinating.
“To attract and retain this new workforce, expectations must change. Many younger professionals who started their careers in the Internet era are now moving in leadership roles, where they have the authority to stimulate change. And change can’t wait – businesses must invest in modernizing their systems now rather than sitting on the sidelines, ”Kefer said.
‘More importantly, this transformation is not just about internal operations. Customers – whether it is beneficial cargo owners or other stakeholders – are going to claim it. They do not accept delays, missed shipping or too many charges caused by outdated processes and disorganized data. They will choose suppliers who are technologically advanced, and in the world of today, to be technologically advanced, it means to embrace AI.
‘Ai actually creates more rewarding work. Think about it – if you work in accounts payable or finance, do you really want to spend your day by hand to enter data and by email? Of course not. You would rather focus on strategic tasks with higher value. “The fear that AI will take work is understandable, but history shows that innovation has always reformed the workforce and has not eliminated it. From steam engines to industrial automation, new technology has disrupted industries, but it also created better opportunities in the process. “
Wider applications
AI has numerous features about logistics, but specifically it is capable of tackling one of the biggest pain points: unstructured email data – A critical area affected by this problem is billing processing. For a large truck running billions of dollars to air loads annually, handling invoices by hand is a big burden. These invoices flood in -mail, which requires employees to manually extract, review and import Transport Management Systems (TMS).
‘Over time, 50 percent, then 70 percent, maybe 90 percent of the invoices can be processed automatically – without human intervention – while also updating the TMS in real time. It not only saves an enormous amount of time, but also improves the effectiveness of the cash flow.
‘One of our clients best puts it: Their business has grown two and a half times, but their workforce has remained the same. Instead of spending time to entering data manually, their employees focus on solving complicated problems and providing better customer service. And let’s be honest – nobody enjoys recurring data imports. Ai is not about replaceing work; It’s about making them better. Who wants to become a data clerk? Nobody. Instead of fearing AI, we need to embrace how it can improve efficiency, free talent for higher value tasks and ultimately improve the entire logistics industry.
“For the logistics industry, AI has the potential to move us further than constantly firefighting. By solving the data problem and providing structured, reliable information, AI can eventually unlock the full potential of logistics software. This shift will not only improve efficiency – it will increase the entire industry, reduce costs and benefit anyone involved. “
Reassuring change
With the rapid progress in AI and automation, businesses run the risk of being overwhelmed because they still find out how to navigate this shift, especially in areas such as invoicing and customs effect. Take customs, for example. Creating a customs entry requires invoices, packaging lists, charges and other documents -which often arrive in different formats and are spread over email. Another critical area is discussions.
While discussions are made regularly via EDI, the actual confirmation – which contains the most important departure details – still comes by email. If the email is missed, a consignment of a week can be delayed, which is disastrous for a retailer expecting stock. Apart from this inefficiency in the office, automation transforms physical logistics. Warehouses have been using sensory grids and robotic pickers for years, which move seamless goods to shipping lanes. However, resistance exists, especially of Langhoremen who fears full automation at ports. Although society may not be ready for fully automated ports and airports, smarter automation can still significantly improve the efficiency without eliminating human supervision.
“Automation creates an entire ecosystem of efficiency. Take air trip, for example. Every time I go through Heathrow, the immigration process feels like a look at the future. As someone in San Francisco, I travel to London regularly, and now, instead of waiting in long lines, you just look at a screen, scan your passport, and you’re through – no stamps, no chaos. Facial recognition has completely streamlined the process.
‘This kind of optical technology has a great potential in load. Imagine a system that can immediately scan a cardboard and recognize its contents without requiring manual input. This is where visibility becomes the right game changer. ‘If we can apply this level of detection and automation to logistics-just as with luggage detection or biometric immigration control-we get closer to the ultimate goal: Full visibility of the supply chain in time. This is the true gold pot at the end of the rainbow.
“It’s not about replaceing people; It is about replacing ineffective, outdated systems with smarter, more responsive technology. “The real opportunity is to correct the broken systems that create unnecessary costs and delays over the supply chain.”
