(Commonwealth_ At the Gartner Supply Chain Planning Summit, research conducted by Netradyne highlighted the transformative role of artificial intelligence (AI) in fleet safety and supply chain logistics. This study emphasizes the vast potential for AI to increase precision, safety, and profitability within the logistics and transportation sectors. Currently, only about 33% of surveyed professionals use AI to evaluate and monitor fleet safety performance. However, interest in adopting AI is on the rise, with 81% of respondents indicating plans to integrate AI platforms over the next year. The primary goals of this shift are to reduce risks, enhance driver safety, and boost operational efficiency.
Key challenges in logistics and transportation
Supply chain professionals face numerous obstacles in logistics and transportation. The survey identifies accuracy, timeliness, and cost-effectiveness as the top priorities for delivery, with 57% of respondents emphasizing accuracy and 31% emphasizing timeliness. However, significant challenges like limited fleet visibility and driver shortages often undermine these goals, hindering companies’ ability to deliver goods precisely and on time.
One of the most pressing concerns is accidents, which result in product damage, harm brand reputation, and affect both driver well-being and driver availability. Accident-related costs are a financial burden for many companies, yet 46% of respondents admitted uncertainty about the total financial impact of accidents on their businesses. This highlights the need for more precise data to track and mitigate accident-related costs effectively.
Outdated technology impairs fleet management.
Data accuracy is essential for efficient fleet management and safety, but many logistics companies rely on outdated technologies such as traditional telematics and GPS systems, which lack advanced functionality. Although 52% of respondents already share data with partners to enhance safety standards, the limitations of these older technologies mean that the data may not offer the real-time precision needed for optimal fleet operations. This has led many supply chain professionals to consider upgrading their systems, with a significant increase in interest in AI-driven solutions to replace or supplement existing tools.
AI-driven data offers much greater accuracy, providing actionable insights that can improve fleet management, reduce operational risks, and enhance safety protocols. As the industry becomes more aware of these advantages, supply chain teams increasingly recognize the need for AI to monitor fleet safety and make data-driven decisions in real time.
AI-Driven Solutions: Transforming Fleet Operations for Efficiency and Safety
Implementing AI into fleet operations and goods delivery processes offers significant advantages. AI-based tools can improve delivery accuracy and timeliness by enhancing fleet visibility and optimizing driver availability. They can also analyze vast amounts of data to predict and prevent potential accidents, reduce traffic violations, and improve driver behavior through continuous monitoring and real-time feedback. By leveraging data-driven fleet management, AI helps logistics companies maintain safer, more efficient operations, which in turn reduces costs and directly boosts profitability.
For third-party logistics (3PL) providers, the benefits of AI are clear. AI enables them to gain better control over their operations, providing enhanced visibility and oversight that is particularly valuable in an industry where end-customer expectations are high, competition is intense, and operational risks are significant. In addition, AI’s ability to reduce costs by optimizing fleet management is increasingly important, as these savings can directly impact the bottom line and support competitiveness in an evolving market.
Durgadutt Nedungadi, Senior Vice President for International Business at Netradyne, commented on the challenges of the transportation sector, noting that the industry faces unique risks given the growing number of vehicles on the road and unpredictable conditions. He highlighted that logistics providers are under more pressure than ever due to increased customer demand for fast, seamless delivery, rising operational costs, shrinking markets, and increasingly selective insurers. In this complex environment, fleet visibility becomes essential, and AI is emerging as a key tool to achieve this visibility and manage the associated challenges effectively.
