HOW AUTOMATION BUILDS RESILIENT SUPPLY CHAINS
AI-powered decision engine dynamically evaluates capacity, cost, location, service level, and other information to determine the best partner for every mail piece, says Brent Hagan, chief supply chain of cer. The engine then optimizes routing to balance speed, reliability, and margin. Machine-learning models continuously learn from the outcomes, such as delivery performance and transit times, to steadily improve the partner selection process, he adds. This turns “the print network into a self-optimizing system rather than a static routing table,” Hagen says. The company says its supply chain can now power millions of highly personalized mail pieces, at speeds and costs that rival digital channels. Logistics and Transportation Outside the warehouse walls, technology is streamlining logistics operations. For example, Circle Logistics uses an automated system to screen potential new carrier partners. The system determines if the carrier meets criteria
Another factor is whether you’re able to pick an entire order discretely, or if you need to sort it, Calahan says. With discrete picking, the automated packaging should be designed to feed empty containers directly to the workstation. This changes
regarding equipment, insurance, and other qualities that are required to work with Circle, says Derek Holst, senior vice president. An employee generally gets involved once a carrier is quali ed. The company is also testing several AI programs that track packages and manage exceptions. These can elevate exceptions that fall outside the norm, so an employee can intervene, says Gary Horton, vice president of sales and operations. Reality Check While automation can make numerous supply chain operations more effective, challenges remain. One is the newness of many solutions. Holst estimates that within three to ve years, some vendors will have exited the market. “It’s a challenge to make sure you take on the right tech partner,” he adds. As warehouses introduce automation, many end up with a mix of automated and manual processes. The “seams” between the processes can become challenging, Moore says. For example, a manufacturing warehouse installed an automated
the facility design. Digital Twins
Applications for digital twins, or virtual representations of a process or system, are expanding from simulations to guiding decision making, Sripada says.
Previously a digital twin might simulate, say, the impact of labor
shortages on a supply chain. When AI is embedded, the digital twin can both simulate different scenarios, and test alternative options, such as rerouting shipments or changing sourcing locations. It also can score the options, based on cost, service, or other criteria, and recommend an optimal course of action. Automation in Action Lob.com, a direct mail automation platform for more than 12,000 brands, works with multiple print partners. An
Ryder’s automation distribution center in the St. Louis area is a highly advanced facility featuring 1.3 miles of conveyors, 44 dock doors, and high-tech inventory management systems
28 Inbound Logistics • February 2026
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