Real-time data flows can provide competitive advantage
Peter Weill of MIT tells the audience at the IFS Unleashed user conference about the benefits of being a "real-time business."
Ben Ames
"Real-time businesses" typically have more than 50% higher revenue growth and net margins than their peers, according to chairman of MIT's Center for Information Systems Research.
Ben Ames has spent 20 years as a journalist since starting out as a daily newspaper reporter in Pennsylvania in 1995. From 1999 forward, he has focused on business and technology reporting for a number of trade journals, beginning when he joined Design News and Modern Materials Handling magazines. Ames is author of the trail guide "Hiking Massachusetts" and is a graduate of the Columbia School of Journalism.
These "real-time businesses," according to Weill, use trusted, real-time data to enable people and systems to make real-time decisions. By adopting that strategy, these companies gain three major capabilities:
Increased business agility without needing a change management program to implement it;
Seamless digital customer journeys via self-service, automated, or assisted multiproduct, multichannel experiences; and
Thoughtful employee experiences enabled by technology empowered teams.
The benefits of this real-time focus are significant, according to Weill. In a study with Insight Partners, he found that those companies that were best-in-class at implementing automated processes and real-time decision-making had more than 50% higher revenue growth and net margins than their peers.
Nor is adopting a real-time data stance restricted to just digital or tech-native businesses. Rather, Weill said that it can produce successful results for any companies that can apply the approach better than their immediate competitors.
Weill's remarks came today during a session titled “Becoming a Real-Time Business: Unlocking the Transformative Power of Digital, Data, and AI" at at the “IFS Unleashed” show in Orlando, Florida.
Generative AI (GenAI) is being deployed by 72% of supply chain organizations, but most are experiencing just middling results for productivity and ROI, according to a survey by Gartner, Inc.
That’s because productivity gains from the use of GenAI for individual, desk-based workers are not translating to greater team-level productivity. Additionally, the deployment of GenAI tools is increasing anxiety among many employees, providing a dampening effect on their productivity, Gartner found.
To solve those problems, chief supply chain officers (CSCOs) deploying GenAI need to shift from a sole focus on efficiency to a strategy that incorporates full organizational productivity. This strategy must better incorporate frontline workers, assuage growing employee anxieties from the use of GenAI tools, and focus on use-cases that promote creativity and innovation, rather than only on saving time.
"Early GenAI deployments within supply chain reveal a productivity paradox," Sam Berndt, Senior Director in Gartner’s Supply Chain practice, said in the report. "While its use has enhanced individual productivity for desk-based roles, these gains are not cascading through the rest of the function and are actually making the overall working environment worse for many employees. CSCOs need to retool their deployment strategies to address these negative outcomes.”
As part of the research, Gartner surveyed 265 global respondents in August 2024 to assess the impact of GenAI in supply chain organizations. In addition to the survey, Gartner conducted 75 qualitative interviews with supply chain leaders to gain deeper insights into the deployment and impact of GenAI on productivity, ROI, and employee experience, focusing on both desk-based and frontline workers.
Gartner’s data showed an increase in productivity from GenAI for desk-based workers, with GenAI tools saving 4.11 hours of time weekly for these employees. The time saved also correlated to increased output and higher quality work. However, these gains decreased when assessing team-level productivity. The amount of time saved declined to 1.5 hours per team member weekly, and there was no correlation to either improved output or higher quality of work.
Additional negative organizational impacts of GenAI deployments include:
Frontline workers have failed to make similar productivity gains as their desk-based counterparts, despite recording a similar amount of time savings from the use of GenAI tools.
Employees report higher levels of anxiety as they are exposed to a growing number of GenAI tools at work, with the average supply chain employee now utilizing 3.6 GenAI tools on average.
Higher anxiety among employees correlates to lower levels of overall productivity.
“In their pursuit of efficiency and time savings, CSCOs may be inadvertently creating a productivity ‘doom loop,’ whereby they continuously pilot new GenAI tools, increasing employee anxiety, which leads to lower levels of productivity,” said Berndt. “Rather than introducing even more GenAI tools into the work environment, CSCOs need to reexamine their overall strategy.”
According to Gartner, three ways to better boost organizational productivity through GenAI are: find creativity-based GenAI use cases to unlock benefits beyond mere time savings; train employees how to make use of the time they are saving from the use GenAI tools; and shift the focus from measuring automation to measuring innovation.
And many of them will have a budget to do it, since 51% of supply chain professionals with existing innovation budgets saw an increase earmarked for 2025, suggesting an even greater emphasis on investing in new technologies to meet rising demand, Kenco said in its “2025 Supply Chain Innovation” survey.
One of the biggest targets for innovation spending will artificial intelligence, as supply chain leaders look to use AI to automate time-consuming tasks. The survey showed that 41% are making AI a key part of their innovation strategy, with a third already leveraging it for data visibility, 29% for quality control, and 26% for labor optimization.
Still, lingering concerns around how to effectively and securely implement AI are leading some companies to sidestep the technology altogether. More than a third – 35% – said they’re largely prevented from using AI because of company policy, leaving an opportunity to streamline operations on the table.
“Avoiding AI entirely is no longer an option. Implementing it strategically can give supply chain-focused companies a serious competitive advantage,” Kristi Montgomery, Vice President, Innovation, Research & Development at Kenco, said in a release. “Now’s the time for organizations to explore and experiment with the tech, especially for automating data-heavy operations such as demand planning, shipping, and receiving to optimize your operations and unlock true efficiency.”
Among the survey’s other top findings:
there was essentially three-way tie for which physical automation tools professionals are looking to adopt in the coming year: robotics (43%), sensors and automatic identification (40%), and 3D printing (40%).
professionals tend to select a proven developer for providing supply chain innovation, but many also pick start-ups. Forty-five percent said they work with a mix of new and established developers, compared to 39% who work with established technologies only.
there’s room to grow in partnering with 3PLs for innovation: only 13% said their 3PL identified a need for innovation, and just 8% partnered with a 3PL to bring a technology to life.
Los Angeles, CA, Jan. 29, 2025 (GLOBE NEWSWIRE) -- Warp, a tech-powered network of cross-docks and carriers offering various vehicle sizes, announced that 2025 it will extend its solutions and services to the U.S. government. Warp aims to modernize government freight logistics with machine-learning-driven planning, optimized network strategies, and flexible solutions to create efficient, cost-effective, and sustainable supply chain transportation.
Focused on optimizing every load, every time, Warp employs machine learning (ML), artificial intelligence (AI), and groundbreaking consolidation techniques to blur the traditional lines of freight shipping by combining the best elements of LTL, FTL, and parcel delivery. Using its homogenous fleet including cargo vans, sedans, box trucks, and 53-foot trailers, Warp facilitates carrier injections, inbound vendor consolidation, pool point distribution, zone-skipping, store replenishment, and national retail distribution for some of the world’s largest shippers.
Unlike traditional FTL carriers, Warp offers per-pallet rates, ensuring customers pay only for what they use. Similarly, unlike traditional LTL carriers, Warp eliminates challenges such as unpredictable pricing, freight class adjustments, reweighs, and rebills. In the process of becoming an official government contractor, Warp will strategically align its technology, teams, and network to meet government needs while identifying opportunities for collaboration.
Many shippers that Warp has helped were previously paying for full truckloads without fully utilizing the space. Additionally, shippers relying on LTL services before switching to Warp often faced hidden fees, surprise surcharges, and unexpected rate adjustments. Our research indicates that these challenges are even more widespread in U.S. government transportation contracts.
“Partnering with Warp will save the government millions of dollars through reduced empty miles, shipment consolidation, route optimization, and scalable logistics—all without requiring government-owned infrastructure,” said Warp Co-founder and CEO Daniel Sokolovsky. “This is something we’ve been working on for quite some time, and we’re thrilled to showcase Warp’s capabilities and innovative logistics solutions on a national scale,” said Warp Co-founder and CRO Troy Lester.
About Warp Warp is a technology-enabled leader in middle-mile logistics, focused on creating efficient, scalable solutions for high-density, high-demand supply chains. By connecting shippers, carriers, and warehouses through an integrated platform, Warp delivers innovative freight technology solutions that prioritize efficiency, sustainability, and customer satisfaction. With a suite of tech-driven offerings, including real-time tracking, cross-docking, and route optimization, Warp provides unmatched reliability, visibility, and transformative impact in logistics and supply chain management.
For more information on how Warp can enhance your logistics network, visitwww.weareWarp.com.
Reducing empty miles—or the distance traveled with no load or cargo—can have multiple benefits, including increased cost savings and streamlined operations. But at its core, it’s about making smarter, more sustainable choices while transporting goods. Here are three components to craft and execute a successful empty miles program, keeping collaboration in mind at each stop along the way.
1. Route Optimization: Streamlining Your Routes to Minimize Empty Miles
Eliminating empty miles begins with route optimization. By analyzing traffic patterns, delivery windows, and geographical distances, logistics leaders can uncover opportunities in their network to minimize empty miles. You can think of route optimization as a more advanced version of strategies used every day by commuters, who adjust their errands to avoid rush-hour traffic, efficiently visit stores in the same shopping center, and use backroads to bypass slowdowns.
To overcome route challenges, organizations should invest in new tools and technology like real-time planning software that helps companies to adjust routes dynamically. These enterprise tools go beyond finding the shortest paths between destinations and unlock granular data on various factors like delivery time windows and vehicle capacity to ensure operations run as smoothly as possible.
Some cutting-edge solutions use artificial intelligence (AI) and machine learning to continuously adjust routes, improve overall productivity, and even boost customer satisfaction rates with reliable tracking information.
To understand what solutions are needed to maximize route potential, companies should evaluate their internal resources and capabilities, as well as consider the type of fleet they manage. For instance, there’s more visibility and direct influence over a private fleet compared to operating through a third party, so the approach may differ in each scenario.
2. Lane Matching & Transportation Collaboration: Team Up to Boost Efficiency and Drive Sustainability
Consider this: According to the U.S. Environmental Protection Agency (EPA), transportation accounted for the largest portion of total greenhouse gas (GHG) emissions in 2022. Now, picture a world where every truck journey is diligently planned to minimize empty space, limit miles on the road and maximize delivery potential—all of which can contribute to reduced greenhouse gas emissions.
This vision becomes reality through collaborative efforts between shippers and carriers. By strategically matching trucks with loads that share similar routes, businesses can drastically reduce their empty miles, helping their bottom line, and the planet. Leaders should look for these lane-matching opportunities, even if that means putting aside competitive differences in the name of the partnership.
Imagine two companies with fast-moving goods that are both sending partial loads down similar routes. By lane sharing and working together to combine these hauls into one truckload, both companies limit the miles spent on the road and improve their asset utilization.
Another form of transportation collaboration involves strategic pickups and returns. Think about the practical example of dropping off pallets along a route and conveniently picking up finished goods from customers on the return trip. This method improves truck capacity while significantly reducing the carbon footprint in each journey.
These key examples underscore the power of partnerships in achieving mutual goals, demonstrating the success industry players can have when they work together toward common objectives.
3. Unit Load Planning: Maximizing Your Space to Reduce Costs
The American Council for an Energy Efficient Economy (AEEE) estimates that 20%-35% of trucks are driven empty, and those that aren’t empty carry just 57% of their capacity. Effective unit load optimization goes beyond filling truck space—it ensures that every cubic inch is utilized to its fullest potential.
Take employees restocking grocery store shelves, for example. In this scenario, load planning maximization looks like stacking cans on top of each other to fit more on a shelf or pulling out better-selling product collections to their own stand-alone display. By actively planning where each product will go, employees can better stock the items and consolidate the number of carts needed to move products.
Within the supply network, companies can explore solutions to optimize their load planning. One includes leveraging test centers, which can uncover invaluable insights into optimal stacking and loading configurations by simulating various scenarios and measuring their outcomes. Taking this a step further, companies can look to adjust their product packaging or transport platforms, such as transitioning to collapsible containers to maximize space. These types of decisions can also translate into substantial cost savings through reductions in labor and handling, pallet costs, and transportation expenses.
Using Technology to Drive Success
While collaboration and strategic planning is fundamental, the impact is even bigger when supported by next-gen technologies. McKinsey reports that 68% of logistics providers and 56% of shippers have invested more in advanced transportation solutions like real-time transportation visibility, route optimization, and telematics since 2020.
These platforms streamline the process of identifying suitable partners by not only considering supply chain variables like anticipated demand but also brand-level commitments like environmental, social, and governance (ESG) objectives. By delivering automated insights, digital solutions empower supply chain leaders to make informed, data-driven decisions to achieve business goals through the best-fit solutions and partnerships.
It's More Than Empty Miles
For many years, businesses have accepted empty miles as a cost of doing business. But the tangible outcomes of collaborative efforts speak volumes. Customer data shows that last year in North America alone, businesses leveraging CHEP’s transportation solutions eliminated approximately 4.7 million empty miles and more than 15 million pounds of C02 from their transportation networks.
When business leaders shift their perspective to recognize that this strategy is more than empty miles, they unlock the future of the supply chain. If companies work together, leverage the latest technology and actively look to better their lane and route strategies, it’s possible to create a more sustainable, productive and resilient supply network.
About the author: Dan Ahrens is the director of Customer Solutions & Zero Waste World at CHEP North America.
Nearly three-quarters of supply chain executives view technology as fundamental to their company’s growth strategy, according to a study by logistics technology vendor Descartes Systems Group, released this week. The study of nearly 1,000 supply chain and logistics leaders from across Europe, North and South America, and Asia-Pacific identified the increasingly complex global trade environment as a major challenge that technology tools can help tame.
“For companies in diverse industries, global trade has become much more complex, with many new challenges to traditional business operations,” Jackson Wood, director, industry strategy at Descartes, said in a statement announcing the findings. “As businesses contend with tariffs and trade barriers, geopolitical instability, supply chain disruptions and compliance requirements, technology tools can help them build greater agility and resilience into their supply chains to compete more effectively.”
The study found that 74% of the supply chain and logistics leaders surveyed view technology as fundamental or highly important to their organization’s growth strategy in the face of rising global trade challenges, including tariffs and trade barriers, supply chain disruptions and geopolitical instability. The number jumps to 88% for companies expecting greater than 15% growth over the next two years. In addition, 59% said they consider technology as extremely or very important to providing a competitive advantage in international trade.
Companies involved in international trade said there are three main tech-focused capabilities that can help them grow and gain a competitive advantage: 36% of respondents cited global trade intelligence—which can help identify new suppliers, markets, and customers—as the top capability required to deliver the greatest value in the next two years; that was followed by global trade analytics at 27%, and supply chain mapping at 26%.
The results also show that respondents across all industries agree that global trade intelligence is the top technology capability expected to deliver the greatest value over the next two years—including, for example, in manufacturing (40%), wholesale and distribution (44%), finance and insurance (38%), and retail (30%) sectors.