Why we will be seeing a radical reinvention of supply chains

Global supply chains are on a growth trajectory due to increased consumption and population. With this change comes a need to enhance production and improve planning, execution, collaboration and performance efficiency.

Customer expectations for speed and efficiency are driving momentum, while the need to improve performance on sustainability is receiving increasing focus.

The multimodal logistics industry is excessively fragmented and has historically carried significant process and information technology debt compared to other leading industries, such as financial services and automotive.

However, with new advancements in artificial intelligence (AI), generative AI (GenAI) and other technologies, there is an opportunity to leapfrog and scale efficiency gains while reducing one's carbon footprint.

AI becomes precedence

As AI and artificial general intelligence (AGI) capabilities become more affordable and accessible, new pragmatic opportunities to optimize pathways for the movement of goods, improving sustainability and cost-efficiency, are arising.

Over the last few years, with the affordability and access of high-performing graphics processing units (GPUs), AI and AGI are increasingly becoming widespread and pervasive in edge computing (where data is stored and processed closer to the user than remote data centres) through mobile devices.

The predictability and convenience offered by AI have been well received. While the impact on security and society is still being assessed and regulations are catching up, productivity improvements are evident in daily life.

GenAI’s slow but sure takeover

GenAI’s advancements are happening rapidly. Despite warnings, there is no stopping GenAI as the system matures to handle complex linguistic capabilities and create contextual responses, which is a phenomenal boost to productivity levels.

GenAI agents are gradually increasing their presence in enterprises, projected to grow from 5% to 25% of transactions in the next three years with faster adoption, according to Infosys research. They demonstrate capabilities to think, analyze, empathize, reason, behave, talk and engage like humans under pragmatic supervision.

GenAI improves customer experiences through contextual and proactive communication about shipments and their status. Automating document generation, leveraging GenAI and blockchain integration, streamlines cross-border transactions, minimizing disruptions and ensuring seamless movement of goods.

The dawn of quantum computing

With GPU adoption, the speed of AI execution has dramatically improved. GPU and chip makers are racing to innovate faster and better. Quantum computing will enhance this, amplifying the computational power of AI and GenAI and increasing speed and agility in logistics.

It will improve the management of ledger-based transactions (blockchain) and enhance traceability for manufacturers and retailers. It will also support inventory control and authenticity verification.

Source: World Economic Forum - full article here: https://www.recannintl.com/resources-detail/why-we-will-be-seeing-a-radical-reinvention-of-supply-chains