WHAT’S THE WORD
The Language of Logistics
AI Infrastructure. This will play a key role in driving supply chain trends as power grid constraints highlight the need for scalable solutions such as nuclear energy. The focus will shift from research breakthroughs to practical innovation, with AI enhancing productivity, resource management, and automation. –Kevin Novak, Managing Partner & Founder, Rackhouse Ventures
RETURNLESS REFUNDS Also known as: Keep It Return Policies To avoid the high cost of reverse logistics, retailers such as Amazon, Walmart, and Target are refunding customers and letting them keep the unwanted items. Pet products retailer Chewy issues refunds on returns and encourages customers to donate the items to charity. The companies oering returnless refunds do it sporadically, typically using the option for low-cost items or ones with limited resale value. The upside: convenience and customer loyalty.
Returnuary The frenzied period after the holidays when consumers return unwanted gifts, one-time out ts, and assorted merchandise—and retailers grapple with a surge of returns. Ecommerce has compounded this phenomenon. Total returns for the retail industry are projected to reach $890 billion in 2024, according to the National Retail Federation and Happy Returns, a UPS company.
vs. Agentic AI GenAI
Agentic AI: the use of intelligent agents to help process and simplify complex data sources. Capable of adaptation and autonomous problem solving. “Intelligent agents are AI systems designed to perceive, reason, and act independently to achieve specific goals. Unlike Generative AI ( GenAI ), which focuses on creating content like text or images, intelligent agents are action-oriented, capable of planning and executing complex tasks across systems and environments. The user interface may include chat, a common GenAI capability. In addition, the agent interacts with other data sources, systems, and models to execute supply chain activities. In supply chain management, intelligent agents hold transformative potential to further automate routine decisions, optimize logistics, and improve real-time responsiveness to disruptions. This enables supply chains to become more adaptive, resilient, and ecient, helping organizations navigate uncertainties like fluctuating taris or inflation. In the next few years, we expect intelligent agents to play a more central role in streamlining supply chain operations and driving innovation. The power of this technology is that it creates an opportunity to take actions and inform decisions in supply chain, across disconnected legacy systems and data sources, without necessarily doing large systems transformations.” –Dustin Burke, Managing Director and Senior Partner, Global Leader, Supply Chain AI, BCG
2025 TERM TO WATCH
Shipper of Choice
will trend again as the market tightens and carriers can be more selective about who they work with and the loads they want to accept.
–Chad Kennedy, Senior Manager, iQ Product, Benchmark Analytics, DAT Freight & Analytics
20 Inbound Logistics • January 2025
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