Logistics companies of all sizes are warned that they must embrace artificial intelligence (AI) and transport management systems (TMS) to survive. “Companies that resist adopting AI and TMS are putting themselves at a serious disadvantage. “Manual processes, inefficient route planning and reactive decision-making simply cannot keep pace with today’s demand for speed and precision,” says David Gladding, chief executive officer of British logistics software provider Celerum. “The logistics sector is notoriously competitive, with thin margins and high customer expectations,” he adds. “As a result, businesses that fail to modernise will likely face rising operational costs, declining service quality and ultimately, a loss of market share to more tech-savvy competitors. “In addition, delays in embracing technology lead to missed opportunities for optimisation and automation. AI-powered systems can analyse vast amounts of data in real time, identify inefficiencies and make recommendations that drastically improve fleet productivity. “Without these insights, businesses risk stagnating while the competition becomes leaner and more responsive,” he warns. An example, according to software company Dataforest, is Amazon, which used AI-powered logistics to reduce delivery times by 50% and cut operational costs by 20%, “while traditional retailers struggled with higher expenses and slower fulfilment”. Regionally, logistics companies are under pressure to digitise operations as regional systems in the Southern African Development Community (SADC) adopt AI. New skills sets are needed by logistics companies as automation makes certain repetitive manual functions redundant. “The ability to work with data forms the foundation of AI applications, and employers seek graduates who can collect, clean and analyse datasets to extract meaningful insights,” states Recruit a Graduate. “These AI skills don’t require advanced programming, but an understanding of how data flows through AI systems.” Universities and colleges need to ensure they are providing the skills needed. A South African Institute of International Affairs report recommends that the SADC Secretariat works with member states to develop national higher education and TVET strategies to implement a region-wide skills foresight framework by 2026. John Harmann, principal at Evolution Analytics, warns that switching to AI is not a once-off investment or project. He lists five risks associated with the rollout of logistics AI systems. They are inaccurate or biased data models, over-automation without human oversight, model drift in dynamic markets, security and supplier data vulnerabilities and lack of clear governance and accountability. “AI can give you a sharper, faster, more efficient supply chain – but only if you implement it with discipline. That means every AI-driven decision should be accurate, explainable and secure,” he says. ER
