The will is there among logistics companies to use AI to boost their business; but a new survey has revealed that their systems just aren’t ready yet.
The survey brought together the views of 100 U.S. executives and 100 supply chain leaders; and asked them about the benefits they are already seeing from AI integration and their hopes for the future.
The U.S. freight and logistics market size is anticipated to reach $1.62 trillion by 2029; and AI could increase logistics productivity by more than 40%. But the survey acknowledged that there are roadblocks.
Optimism Abounds on AI Logistics
The results, which were gathered by the teams at LeanDNA and Wakefield Research, reveal that AI is already playing a huge role in the logistics industry.
As reported by SupplyChain247, 92% of executives and 100% of supply chain leaders said that AI is essential for predicting and preventing disruptions.
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This echoes other reports, including one from DocShipper, that suggests that AI is expected to make supply chains 45% more effective in delivering products on time and without errors.
Businesses are investing, confident that they will see a return on investment though time frames vary. The survey revealed that 24% of executives and 15% of supply chain leaders think they have already seen a positive ROI or will in the next six months.
However, when the team looked ahead to the next two years, the percentages grew considerably with 87% of executives and 89% of supply chain leaders expecting a positive return.
How is AI Being Used in Supply Chains?
The survey also gave a glimpse into how AI is being used. Half of the supply chain leaders said that they are using AI to improve reliability. But it is also being used by almost the same percentage (45%) to help them diversify suppliers while 39% are deploying AI to sync their supply networks.
The technology is playing a key role in helping 39% of respondents upgrade their data infrastructure; but this is also a pain point for many.
Only 19% of executives and 18% of supply chain leaders could claim that they have achieved full digital synchronization.
Differences of Opinion in Logistics Industry
The survey interestingly revealed a disparity in what the two groups of leaders are concerned about when it comes to AI implementation.
Executives are most worried about production disruption while inventory costs, reputation, and staying compliant are the biggest red flags for the supply chain leaders.
What unites them, though, is the belief that companies need to stop simply reacting – and therefore existing day-to-day when it comes to AI – and instead focus on planning ahead.
Global manufacturing and supply chain company Fictiv reported that 34% of shipping and logistics firms don’t even have a digital transformation strategy.
Leaders in the logistics world can see the benefits of AI integration but a lack of foresight and planning now means that they are working with systems that struggling and are having to be reactive instead of proactive.
