January 6, 2025 | Page 101

Annual Review & Outlook 2025
Logistics
Executive Commentary
Raft
Greg Kefer
Chief Marketing Officer www . raft . ai
Artificial intelligence resides on top of the IT hype cycle because of its ability to communicate and learn in humanistic ways . Today , as consumers , we are surrounded by AI — just ask Siri .
But businesses are only now beginning to take full advantage , making significant AI investments across all operational areas , including containerized freight ; however , there are multiple different aspects of moving freight that will benefit .
AI presents an enormous opportunity to address and rectify the data challenges that have vexed logisticians for decades . Despite tremendous amounts of effort and investment to solve this data problem , nothing has
worked . Today , Microsoft Office and email are pervasive , which is an extraordinarily expensive reality when managing ocean freight . Hence , AI ’ s opportunity is significant .
Companies have been evaluating AI through pilot programs in order to get their feet wet , judging whether this is just another IT fad or something that will create real impact . Many are using it to consume and organize unstructured data and leverage it within their existing IT ecosystems , doing away with manual data entry and , in turn , improving both data quality and velocity . We are now seeing success cases being shared at conferences , on webinars and in news articles ; it works .
In 2025 , AI will begin to “ cross the chasm ,” where the early adopters can begin to scale it across their operations , and the mainstream market will begin to follow . Applying AI to processes — such as the way freight is booked and paid for or the way customs declarations are created — are among the use cases that will deliver process efficiencies and operational value running into tens of millions of dollars in ROI for large shippers . We will be hearing and reading about it next year .
“ Applying AI to processes — such as the way freight is booked and paid for or the way customs declarations are created — are among the use cases that will deliver process efficiencies and operational value running into tens of millions of dollars in ROI for large shippers .”
Greg Kefer
Additionally , processes such as documentation , regulatory compliance , last-mile delivery optimization and standard order fulfillment are increasingly managed by intelligent software , which excels at handling repetitive , data-driven tasks — boosting accuracy and reducing costs .
Yet , essential aspects of logistics still require human expertise . Strategic network design , complex problem-solving during disruptions and high-value customer relationships demand human judgment , creativity and adaptability . Custom solution development , risk assessment and crisis management rely on experience and emotional intelligence — qualities automation cannot replicate .
The real power lies in a strategic blend of both . Companies achieve the best results by automating standardized processes while empowering their teams to focus on high-impact activities requiring creativity and nuanced decision-making . The most successful logistics operations will master this hybrid approach — using automation to boost efficiency and human expertise for strategic growth and customer satisfaction . This balance reduces costs while preserving the flexibility and relationship-driven focus that modern logistics demands .
Qued
Prasad Gollapalli
CEO and Chairman www . qued . com
Supply chains worldwide are undergoing a fundamental evolution as manufacturers strive to cut transport and inventory costs , bring suppliers closer to plants and stage finished goods closer to end consumers . Underlying this structural change is an expansion of technology throughout the supply chain that is creating more management challenges and opportunities .
Shippers have more choices . Mobile apps and complementary management technology have enabled freight brokers to act and operate similar to asset owners . The capacity market is more fluid than ever . And technologies to plan , source , manage and execute freight shipments are becoming cheaper , easier to integrate , more inclusive and more powerful .
Today ’ s supply chain technologies are on the cusp of further advancement . Machine learning and artificial
intelligence are becoming deeply embedded into logistics and transportation management software solutions . That ’ s bringing promise for even more efficiency , productivity , visibility and precise decision support . The result ? With more manual tasks automated , workers can tackle more complex problems for customers .
The biggest challenge : managing evolving technology and capturing the benefits . AI presents opportunity to “ improvise ” decisions in a way that reaches the best outcome faster and more accurately .
One example is load appointments , which have many variables . With AI , the software can consider these variables and quickly find the optimal time for that stop while learning and becoming more precise . AI is a consolidator of data and decision choices , understanding how each decision impacts the next and continually refining the overall process and setting the stage for a profound reimagining of how logistics tasks are executed .
Yet AI is not for everything — we still need people involved in the process . But they will be operating more efficiently , at a higher level , and with more knowledge , intelligence and decision support at their fingertips than ever before .
“ AI is a consolidator of data and decision choices , understanding how each decision impacts the next and continually refining the overall process and setting the stage for a profound reimagining of how logistics tasks are executed .”
Prasad Gollapalli
“ The most successful logistics operations will master this hybrid approach — using automation to boost efficiency and human expertise for strategic growth and customer satisfaction .”
Will O ’ Donnell
www . joc . com January 6 , 2025 | Journal of Commerce 99