Food and Beverage Business
Supply Chain

Adoption of AI in U.S. Transportation and Logistics Industry Lagging behind

Adoption of AI in U.S. Transportation and Logistics Industry Lagging behind AI, industry, Logistics, Transportation, U.S. Food and Beverage Business

U.S. transportation and logistics (T&L) companies are increasingly incorporating basic data analytics and artificial intelligence (AI) into their operations, with nearly 50% utilizing basic data analytics and 34% using AI capabilities, according to a study by HERE Technologies, developed in part with Amazon Web Services (AWS) and conducted by YouGov.

These findings demonstrate the underutilization of processes and solutions that have the potential to modernize logistics operations, streamline processes, and inform strategic decision-making, such as route optimization and machine learning.

Remco Timmer, VP of product management at HERE Technologies, notes, “the industry currently lacks the contextual data, AI capabilities, and tools needed to optimize fleet deployments, routing, and appropriate mode switching. As a result, we’re seeing increased demand for location data and services that enable logistics companies to overcome disruptions in real-time while reducing emissions and improving employee safety in the process.”

Some key takeaways from the study include the identification of cost, fear of disrupting existing processes/services, and trouble identifying the right partners/suppliers as the biggest barriers to implementing technology into supply chain management for U.S. T&L companies.

The survey also highlighted that U.S. logistics firms are leading in this category, with logistics firms in Germany and the UK reporting higher underutilization of basic data analytics and AI implementation. Additionally, location data and Internet of Things (IoT) are being utilized the most, with nearly half of American logistics firms leveraging mapping and location data for driver routing purposes.

The study also reveals a significant gap in the prioritization of sustainability among logistics companies in the United States, along with notable progress toward supply chain visibility. The modes cited to have the most real-time visibility were truck operations, air freight, and last mile, while ocean operations were reported to have the least real-time visibility.

Overall, these findings highlight the increasing incorporation of technology and data analytics into the operations of U.S. transportation and logistics companies and the ongoing efforts to enhance supply chain visibility and sustainability goals.

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