TAKEAWAYS
AI in Transportation: All Talk, No Action? While artificial intelligence (AI) is one of the most buzzed-about topics within the supply chain sector, AI adoption is lacking severely in the U.S. transportation and logistics (T&L) market, according to new data from HERE Technologies and Amazon Web Services. In a multi-country survey of transportation and logistics professionals in the United States, Germany, and the United Kingdom, HERE found a significant gap in the adoption of basic data analytics. The survey results underscore the untapped potential of AI—from data analytics supported by machine learning to optimized fleet routing, predictive maintenance, and streamlined processes for strategic decision-making. Here are the report’s key takeaways: • Only 50% of T&L professionals across the three countries say that their organizations utilize basic data analytics in their operations. At the same time, 25% of all respondents state their organization leverages AI capabilities. • Cost (23%) is the leading barrier to tech implementation. • Potential disruption to existing services (12%) and lack of internal expertise (11%) were the second and third most cited barriers to technology implementation. Somewhat conversely, survey participants were optimistic about their progress toward supply chain visibility, with 86% reporting notable progress toward supply chain visibility and 18% considering their progress significant. Among modes, 50% indicate truck freight has the highest visibility, while 45% cite ocean freight as the least visible mode of transportation ( see chart ). The untapped potential of AI US | Which of the following ways best describe how your organization is using data analytics and/or AI to improve supply chain management?
WALMART WINGS IT The nation’s largest retailer will soon boast the retail sector’s largest drone delivery footprint. Walmart recently unveiled plans to dramatically expand its drone capabilities across the Dallas-Fort Worth metroplex, adding more than 30 municipalities and towns in North Texas. The expansion will enable the company to reach up to 1.8 million additional households —the most ever by a retailer offering drone delivery in a single market—and cover as much as 75% of the metro area. Individuals who live within 10 miles of participating stores will be able to order thousands of items, ranging from snacks and beverages to baby wipes and over- the-counter medications, for delivery by drone in 30 minutes or less and potentially in as fast as 10 minutes. The retail giant is partnering with drone delivery companies Wing and Zipline for the service; both are authorized by the FAA to fly drones beyond the line of sight of operators. Walmart says it has safely completed more than 20,000 drone deliveries over some two years of test flights.
We do not currently use artificial intelligence (AI) in our supply chain management
27%
We use basic data analytics tools to track and analyze supply chain performance
25%
We utilize basic data analytics to identify inefficiencies and streamline supply chain processes
24% 24%
We do not currently use basic data analytics in our supply chain management
We leverage both basic data analytics and AI for real-time tracking and predictive maintenance in our supply chain
14%
AI is integrated into our supply chain to automate decision-making and enhance overall efficiency
10% 10%
We employ AI algorithms for demand forecasting to optimize inventory management
Supply chain visibility progressing
US | How would you rate your company’s progress toward real-time supply chain visibility on a scale of 1 to 5, with 5 being the most progress and 1 being the least? 45% cite ocean freight as least visible mode of transportation 50% indicate truck freight as having the best visibility
Source: HERE Technologies/Amazon Web Services
18 Inbound Logistics • February 2024
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