For importers and exporters, the next advance in supply chain technology is not simply knowing where goods are, but using AI and connected data to prevent delays, reduce costs and make better decisions.
Knowing where a shipping container is at any given moment was once a competitive advantage. Today, it is a basic expectation. The real opportunity for importers and exporters lies in what businesses can do with that information, and, increasingly, how artificial intelligence can help them act on it.
According to Martijn Pietersma, commercial manager for Australia and New Zealand at global logistics company Flexport, the industry is moving beyond shipment visibility towards connected systems that identify problems, recommend solutions and, where authorised, execute decisions automatically.
The shift has significant implications for businesses managing international supply chains, particularly those trying to contain costs, improve delivery reliability and expand without increasing headcount.
“When I started eight years ago, cross-border logistics was all about visibility, about knowing what was going on and what exceptions were where,” Pietersma recalls. “But that has almost become a commodity.”
Where brands once wondered why a shipment was delayed, now they want to know what caused the delay, how it affects the wider business and what can be done to prevent it happening again.
Turning supply chain data into business decisions
“We are seeing a lot of conversations now around connectivity in the supply chain,” Pietersma explains. “Moving a single good across the world takes more than a dozen different partners. They all work very siloed and in their own time zones. So how do you make sure that you get information on what is happening, that all of that data is captured correctly afterwards, and what, as a company, are you doing to keep improving your customer supply chain?”
The challenge is not necessarily a shortage of information, but that the information often sits in disconnected systems, preventing sales, procurement, finance, and logistics teams from responding quickly or identifying recurring problems.
Pietersma recalls a European customer importing goods from Asia that had planned its operations around a 40-day transit time. Yet shipments consistently arrived later than expected. The previous logistics provider regularly advised the customer of delays, but the business lacked the information to understand why they kept happening.
“What happened in this specific case is that they had one supplier that always delayed their cargo-ready day, which meant their freight forwarder was never able to pick it up in time for the sailings that they requested.
“When you don’t have the data, it becomes more of a gut feeling than an actual conversation topic. So the moment we started showing them the impact of what could happen if their supplier delivered this in time, the discussion switched from why it is late to what we can do about it.”
A similar problem affected a large Australian exporter whose global sales and logistics teams operated across different time zones and systems.
“This meant that every time the supply chain team got an update on these sales orders, by the time they updated the sales teams via their internal systems, the data was already outdated.”
By connecting the sales team to the same system used by logistics operators and carriers, Flexport enabled employees to receive shipment notifications directly, rather than waiting for information to pass between departments.
“In this case, the delays happened because, with a previous forwarder, they were receiving these notifications late from the carrier. By cutting that out and by showing them that they can have this information in real time, they’re able to show their own customers this information quicker, and thus start advising their own customers quicker.”
From passive dashboards to autonomous execution
The next stage of logistics technology goes beyond identifying problems to recommending and executing solutions.
Pietersma says AI-enabled systems can continuously assess shipment information, identify opportunities to improve efficiency and initiate operational tasks, subject to the level of autonomy a customer is comfortable allowing.
“We provide a very personalised system to the needs of what a client’s actual boundaries are and how autonomous they want a shipment to be executed.
“Does a client want the system to already pre-approve shipments according to the rates that we have agreed on, or do they want to check that? Does the client want to approve a 5 per cent change to an order, or does that fall within a boundary that allows automatic approval?
One practical application involves consolidating smaller international shipments. An Australian Flexport customer imports around 200 less-than-container-load (LCL) shipments annually, often comprising just one or two pallets from individual suppliers.
Previously, employees spent hours gathering supplier details, recording pallet quantities in spreadsheets and sending the information to a freight forwarder to assess consolidation opportunities. Flexport’s technology now automates much of that process.
“One of our latest tools is an autonomous system that automatically detects all of these booked small shipments, these LCL shipments, that shows you consolidation plans and automatically advises you of the decrease in a rate if you start consolidating it, and also the impact on transit time.
“So it is autonomous in a way that, as an agent, it constantly looks for improvements in your supply chain.
“But this client has chosen to still be the one that accepts it or declines the offer. We also have clients that say, ‘Hey, if it is able to save me money, push it through’. So you can make it as autonomous as you want.”
So, rather than simply presenting information for employees to analyse, the system identifies potential savings and calculates the implications for delivery schedules.
Why AI should increase human interaction
Despite the growing potential for automation, Pietersma rejects the notion that technology should eliminate the human relationships underpinning international trade.
“Logistics is still a people’s game,” he says. “People find it important that they understand the nuance of each other’s business. Actual goods move across the world. We are not just shipping data.”
He compares the adoption of AI with the arrival of mobile phones and the internet, technologies initially viewed with uncertainty but which ultimately changed how people communicate.
“I don’t think AI and tech should replace people; they should enable people to be more efficient and effective.
In logistics, that means eliminating repetitive administrative tasks so account managers can focus on advising customers, solving problems and improving supply chain performance.
“So if you are leveraging technology and AI well, you should increase human interaction and make it more worthwhile. Step away from sending each other Excel sheets, and have conversations about what you can improve in each other’s job.”
Doing more without adding headcount
For importers and exporters operating in a difficult retail environment, the financial implications may be the most compelling reason to invest in connected systems and AI.
Pietersma says many businesses want to increase sales and shipment volumes without proportionately expanding their workforce.
“To do that, you need to start eliminating small tasks and have the right data to do so.”
Pietersma says the wider lesson here is that businesses should judge supply chain technology not just by the quantity of information it provides, but by the improvements that information makes possible.
“AI and tech should not be scary. It should allow you to decrease small tasks and enable your employees and colleagues to work on more strategic, impactful goals for the business.”
