AI in the supply chain: from fragile to intelligent

Diana Davoyan -
Your Focus
- 7 Aug 2025 ( #1242 )
2 min read
Using Ai in the supply chain to build resilience
Using Ai in the supply chain to build resilience
Diana Davoyan is a digital marketer in the global robotics sector based in Europe. Here she looks at how AI can help to build resilience in the logistics and supply chain.

The global supply chain has spent the last five years under siege. Trade wars, pandemic disruption, port congestion, and now geopolitical volatility have exposed what many already suspected: our systems are efficient, but not that intelligent.

Enter artificial intelligence — not as a gimmick, but as a critical enabler of resilience.

In an industry historically slow to adopt digital transformation, AI offers a rare opportunity: to not only rebuild supply chains but to rethink how they function entirely. It's time we stop viewing AI as an experiment on the tech team’s desk, and start treating it as the strategic brain of the modern supply chain.

Predict, don’t react

In traditional logistics, most decision-making is reactive: something breaks, and teams scramble to fix it. However, with AI-powered systems, we can now operate in anticipation mode.

AI forecasts demand with more precision than any spreadsheet ever could, drawing from POS data, weather patterns, promotional calendars, even economic sentiment. Machine learning models can rebalance inventory before it runs low, reroute trucks before they’re stuck, and flag supplier risk before it turns into downtime.

The result? Less waste. Less chaos. More confidence.

Human + machine: a shift in roles

Let’s be clear: AI isn’t eliminating people — it’s elevating them.

Instead of chasing down missing SKUs or adjusting warehouse layouts manually, logistics professionals can spend more time on strategic planning, relationship building, and exception handling. The shift is from execution to orchestration.

That said, the industry must be proactive in reskilling. AI creates new kinds of roles — data translators, automation analysts, digital logistics managers — that didn’t exist a decade ago. If we want to stay competitive, we need to invest in talent as much as technology.

Real-world impact

Some leading companies use AI to power dynamic routing and real-time delivery updates,  deploy AI to forecast demand and optimise delivery schedules as well as integrate AI into demand planning, reducing forecast error and inventory waste.

Other logistics providers are still stuck in siloed systems and legacy thinking; a liability that’s becoming harder to afford.

Risks worth managing

Of course, AI isn’t a silver bullet. Models are only as good as the data they’re trained on. Blind reliance on automation can introduce new vulnerabilities, including security, compliance, and ethical concerns. 

Transparency and explainability must be baked into any serious AI strategy.

Which is the bigger risk? Doing nothing.

In a world where disruption is the norm, agility is the advantage. And AI is the engine behind it.

The logistics sector has reached a fork in the road. One path sticks with legacy systems, reactive thinking, and fragile forecasting. The other embraces AI as a partner — not a threat — and uses it to build a smarter, more responsive supply chain.

The companies that choose the latter won’t just weather the next disruption. They’ll be the ones defining what comes after it.

In today’s logistics landscape, intelligence isn’t optional; it’s the new infrastructure.

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Are you recruiting? Find your ideal candidate among a diverse range of materials handling professionals:

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Inside The News
The US Monthly Confidence Index, measuring the mood of the equipment finance industry, has remained stable for the fourth consecutive month, despite one survey respondent saying “competing economic forces and political strategy collide to create an unusual operating environment”. Read the full story in this week’s news ... Continue reading
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Upcoming industry events …
November 04-05, 2025 - Houston, TX, United States
December 03, 2025 - New Delhi, India
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Inside The News
The US Monthly Confidence Index, measuring the mood of the equipment finance industry, has remained stable for the fourth consecutive month, despite one survey respondent saying “competing economic forces and political strategy collide to create an unusual operating environment”. Read the full story in this week’s news ... Continue reading

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