AI and automation are rapidly changing the way the supply chain industry operates, allowing for improved efficiencies and financial outcomes across all supply chain-related operations.
With robot shipments expected to increase by an enormous 50% each year until 2030, and warehouse automation increasing by over 10% each year, decision-makers must explore the variety of available technological advancements to stay afloat.
Rick LaGore, Co-founder and CEO of InTek Freight & Logistics has revealed his expert insights, detailing the ways AI and automation will affect the future of supply chain and how leaders can prepare, including autonomous trucking to optimize route planning and transportation management systems (TMS).
Navigating disasters and complex obstacles is not a simple operation. The recent Red Sea attack significantly impacted the industry, with route times and shipping costs driven up rapidly, as a route regularly used by 15% of global shipping traffic before the crisis was severely disrupted in the long term.
However, LaGore predicts that AI will help leaders to tackle unpredictable disruptions, commenting “As peak shipping season approaches where shipping charges increase to meet higher freight capacity demands, we are actively reviewing the role AI holds in supporting disruption management and support, to create a more efficient and safer environment for businesses around the globe.”
“Currently, AI demand predictions allow businesses to adjust shipment volume until situations such as the Red Sea attack improve. AI can analyze the market, identifying opportunities to shift modes, and offer solutions based upon how markets have reacted to similar issues previously.”
Labor shortages are another major concern in the industry, with warehouse and transportation job openings in the U.S. forecasted to hit 1.7 million this year. “By automating tedious and repetitive tasks, resources can be reallocated to boost productivity and efficiency, therefore speeding up processes in supply chains” LaGore adds.
LaGore continues, “while it is natural to feel concerns about the impact AI and automation may have on people’s jobs, we must focus on how these new technologies are helping us to perform jobs better, aiding our work rather than replacing human-filled roles”.
“As Bart De Muynck recently explained on our podcast, younger generations entering the workforce have grown up surrounded by technology, so are familiar with the use of and reliance on different modern technologies in different aspects of their lives.”
Other predictions from LaGore include autonomous trucking, where vehicles with sensors, actuators, algorithms, and machine learning systems, will improve shipping time by removing necessary human breaks. It is likely that we will soon see further advancements in intermodal rail yards beyond automated truck gates, which increase terminal productivity and personnel safety.
“However, many regulatory hurdles must be overcome. Assembly bill 316, passed in California 2023, states humans must be trained and present while autonomous semi-trucks and big rigs are operated.”
As electric and autonomous trucks undergo necessary development, intermodal transportation offers many similar benefits, including efficiency and sustainability. To find out more, visit: https://www.intekfreight-logistics.com/
