Embracing AI Logistics Software
We took take part in this year’s Gartner Supply Chain Executive Conference. I was especially honored to present a session on supply chain intelligence. Moreover, I presented on the Logistics Expert System, or LES. I talked about how it will redefine industry software with new terminology. That it is a new method of thinking and a new normal in AI logistics software intelligence. I also discussed why the industry is ready for a new Magic Quadrant—the LESQuadrant, to be exact.
It’s the AI logistics industry’s time to grow. It must put in place the sophistication necessary to identify problems and patterns. It can analyze better alternatives and react right away to changing conditions. This is like how when SAP helped to introduce the ERP category. The LES rises to the challenge as the next step in the evolution of all logistics industry software. This includes software like:
- warehouse management systems (WMS)
- freight management systems (FMS)
- rate management systems (RMS)
This also includes transportation management systems (TMS) and even home-grown systems (HGS). It’s well positioned to change the trajectory and landscape. It will forever alter legacy logistics software solutions. Also, it does this by focusing on intelligence first. It then also gives middleware capabilities. These capabilities support the necessary interconnectivity the industry needs too.
LES and ROI
The LES Movement is a giant step forward for the AI logistics industry. It will also prove to be a much bigger movement. There have been “free shipping” programs that had a bad impact on so many organizations’ P&Ls. Moreover, this improved LES technology will have a positive impact compared to this. This may be the greatest shift in the history of the logistics industry. It’s also one that every supply chain operation should be part of.
We had discussions with leading brands’ top supply chain executives. We sensed lots of excitement and skepticism. It was excitement and skepticism around smarter technologies. This also included technologies such as artificial intelligence and blockchain. Their biggest concern was how to best adapt these new methods. In particular, software intelligence. It was about how to get the necessary ROI adopting this technology.
At Teknowlogi, we’ve also developed a true proof of concept with Tai. It is the industry’s first cloud-based solution built on AI. We want to help ease some of those fears. We want to show the value AI logistics can bring across an entire organization too.
In fact, Tai made an appearance during the presentation. It shows how to address some of the top challenges supply chain executives are facing today. These include:
- Being more proactive vs. reactive in every area of their business at all times
- Succession planning for an aging, yet knowledge-rich, staff
- Handling employee turnover as skill sets walk out the door―often to competitors
- Reducing costly external consulting and professional services expenses
- Elimination of communication gaps that occur between people, devices, and technologies
Additionally, there was―and always is―a lot of talk around data and visibility. We’ve found that different people can view the same data. They still then have a different view of it. And so, they act on that data in a different way based on their individual analyses. Our industry is in desperate need of what we call “applied intelligence.” This means to harness knowledge and data. This with the support of the capabilities of AI and machine learning. It goes back to the simple equation. This is data + analysis + execution = immediate ROI and long-term business value. LES can deliver the smarter solution for this equation, every time.
We all have our tipping points. Especially where competitive pressures force us into new ways of thinking. Let us know if your organization has reached that point.