Ann Marie Jonkman, senior director of global industry strategies with Blue Yonder, frames the key questions that logistics service providers should be asking, as they consider adopting innovative technologies on behalf of customers.

When it comes to considering new technology, the big trend among logistics service providers is “honing in on how to take care of disruption,” Jonkman says. Questions abound: How do I offset a shortage of skilled labor in the warehouse? How do I automate? Do we need to replace our technology? How effective is machine learning and generative artificial intelligence?

LSPs are focused on how they can meet the expectations of multiple clients, and what kind of technology is needed to achieve that objective. There might be questions about how to make the necessary investment when capital expenditures are locked. The final decisions will be based on what gives providers the ability to help customers grow, then scale in line with future needs.

AI and ML are key components of that equation today. They are necessary tools for managing the massive amounts of data that have always been there, but couldn’t be effectively harnessed to be of real value. GenAI in particular presents the possibility of linking multiple functions of the operation in a holistic manner — tying together warehouse execution, transportation cost, downtime expense and investment in robots. It’s all about synchronization and orchestration, Jonkman says.

Is GenAI sufficiently mature to play that role today? Jonkman has seen use cases that suggest it is. “But you have to be careful,” she says. New systems should be introduced and tested gradually, to ensure the “incremental, small-batch frequency of change.”

Regardless of how sophisticated the technology is, humans must remain in the mix. “It’s not a [case of] set it and forget it,” Jonkman says. “There are still people in every facet of these areas.”