AI and Automation Reshape 2024 Supply Chains

Supply Chain Outlook 2024: Technology, automation, and AI are driving improvements in efficiency, visibility, and resilience. The focus is on artificial intelligence, logistics, Transportation Management Systems (TMS), warehouse automation, Third-Party Logistics (3PL), and robotics. These technologies are crucial for optimizing operations and adapting to evolving market demands. Key trends include enhanced data analytics for predictive capabilities and the integration of AI for real-time decision-making. Companies are increasingly adopting automation to streamline processes and improve overall supply chain performance. The emphasis is on building agile and responsive supply chains capable of withstanding disruptions.

As automation sweeps across industries and artificial intelligence transforms business operations at unprecedented speed, supply chain professionals face both extraordinary opportunities and complex challenges. Digital supply chains are emerging as powerful tools that enhance efficiency, visibility, and operational resilience while helping businesses navigate uncertain market conditions.

Through advanced technologies enabling real-time monitoring of inventory levels, transportation routes, and customer demand, companies can better predict risks, make data-driven decisions, and optimize resource allocation. However, persistent labor shortages in warehousing, logistics, and transportation require businesses to not only equip workers with appropriate skills and tools but also foster cultures that encourage innovation and empower employees to drive change.

Keynote: AI-Powered Transformation of Supply Chain Operations

At the 2024 Supply Chain Outlook Virtual Summit, Nathanael Powrie, Senior Director at SGS Maine Pointe, explored how artificial intelligence is revolutionizing supply chain management. He cited a recent National Bureau of Economic Research report showing that 28% of U.S. workers now use generative AI (GenAI) in their jobs, with 24% using it at least weekly.

"This technology barely existed two years ago and is now essential for nearly one-third of workplaces," Powrie noted. "This isn't just a technological trend but a fundamental shift affecting everyone."

Powrie explained that GenAI serves as a general-purpose technology applicable across numerous professions and tasks. For supply chain management specifically, AI provides real-time operational visibility, continuous monitoring of production metrics, and early identification of potential issues before they escalate into costly problems.

Session 1: Transportation Trends in an Era of Fragmentation

Logistics professionals must balance challenging market conditions, evolving regulations, talent competition, and emerging technologies. A research panel from Mississippi State University, Georgia College & State University, and the University of Central Arkansas presented findings from the 33rd Annual Study of Logistics and Transportation Trends.

The study examined transportation expenditures, competitive strategies, and performance management. Panelists highlighted how companies view automation as a tool to augment human capabilities rather than replace workers, while addressing the critical shortage of supply chain talent across experience levels.

"If I had 10,000 students, I'd have just as many employers seeking that talent," said Douglas Voss of the University of Central Arkansas. "The days of finding exceptionally talented candidates by chance are over. We must better communicate our industry's value proposition."

Session 2: TMS Solutions for Managing Complexity

As companies expand geographically or handle more transportation modes, supply chain complexity intensifies. Fluctuating fuel prices, capacity constraints, labor shortages, and rising customer expectations further pressure logistics teams. Transportation Management Systems (TMS) have become vital tools for streamlining networks and improving efficiency.

Howard Turner of St. Onge Company identified key indicators for TMS adoption: difficulty tracking transportation spending, need for stronger audit capabilities, and challenges monitoring carrier performance. He also discussed supply chain control towers that provide real-time visibility and enable proactive decision-making.

"Customer demands, freight visibility, and delivery times—these are areas where TMS delivers data and process simplification," Turner explained, describing software control towers as bridges between systems that enhance overall supply chain visibility.

Session 3: Warehouse Automation Investments Surge

The annual warehouse operations survey revealed 84% of respondents plan facility expansions, with increased budgets for automation and material handling equipment. Norm Saenz of St. Onge Company discussed findings showing a shift toward case handling rather than full pallets, creating new challenges for warehouse space and conveyor systems.

E-commerce growth drives demand for more case picking and shipping, while labor constraints remain critical with turnover rates often exceeding 30%. Saenz noted that warehouse execution systems (WES) and warehouse control systems (WCS) are increasingly overlapping with traditional warehouse management system (WMS) functionalities.

Session 4: Redefining Shipper-3PL Partnerships

EY directors Bob Pitts and Mike Reiss presented a new Logistics Operating Model (LOM) designed to create more strategic shipper-3PL relationships. They emphasized moving beyond transactional arrangements to collaborative partnerships that share mutual benefits and growth objectives.

"Shippers must ensure their 3PL's growth is considered," Pitts stated. "As 3PLs grow, shippers become more successful, and their combined market influence amplifies."

Session 5: Making Automation Decisions

Tom Bonkenburg of St. Onge Company addressed the automation dilemma facing warehouses, noting that 80% remain manual operations. For companies beginning automation journeys, he recommended starting with design considerations for physical space and workflows while accounting for future scalability.

"When projecting future needs, examine how your SKUs and business will evolve," Bonkenburg advised. "Ensure your automation can accommodate change rather than constrain it."

The summit highlighted how technological innovation, strategic partnerships, and workforce development are converging to shape the next generation of supply chain management. As organizations navigate this transformation, the integration of human expertise with advanced digital tools emerges as the defining characteristic of future-ready operations.