Anticipation Over Reaction: How AI is Transforming Supply Chain Management

Growing market volatility and disruptions in global supply chains are forcing greater predictability and process control. However, delays, stock shortages or sudden spikes in demand no longer have to mean operating under time pressure. As the latest FM Logistic report on artificial intelligence in logistics shows, the TSL sector is rapidly shifting from reacting to problems to anticipating them.

Data-driven solutions and advanced analytics have become one of the key applications of AI in logistics. According to the report, approximately 50 per cent of companies lack end-to-end supply chain visibility, which hampers their ability to mitigate risk and respond effectively to disruptions. Meanwhile, with the cost of supply chain disruptions estimated at $184 billion annually, this lack of end-to-end visibility is a costly problem. FM Logistic develops solutions that analyse historical data, on-time delivery rates, transport routes, and order characteristics, amongst other factors, to identify the risk of disruptions well in advance.

“Just a few years ago, AI in logistics used to be associated mainly with data analysis. Today, it actively supports operational decision-making and helps predict events before they can affect the delivery flow. This is the direction that will define the development of modern supply chains in the coming years,” says Rafał Woźniak, Operations Director in Poland at FM Logistic.

The effectiveness of such solutions, however, depends on data quality. This is why logistics operators invest in tools that ensure end-to-end process visibility across the entire supply chain. A good example is the Control Tower system developed by FM Logistic, which integrates data on transport, stock, carriers, documentation, and customer service into a single analytical environment.

The report provides a case study that illustrates what such tools can achieve: one of FM Logistic’s clients manages deliveries to 120 countries from a single warehouse, with the Control Tower supporting the entire process, ensuring operational consistency and a seamless flow of information. This facilitates real-time monitoring of operations and a faster response to changing market conditions. As confirmed by a case outlined in the report: a sudden drop in temperature triggered a surge in demand for windshield de-icer at retail outlets located across gas stations in Poland. Data analysis made it possible to swiftly identify locations requiring stock replenishment and the appropriate redirection of deliveries.

Implementations that use AI in warehouse processes are also already yielding tangible results. FM Logistic Polska has become the first logistics operator in the world to deploy Google AlphaEvolve technology to optimise order-picking algorithms.

As a result, picking route efficiency has been improved by over 10 percent, and the annual distance travelled by operators has been reduced by over 15,000 kilometres—all without additional investments in infrastructure. The implementation results show that AI-powered solutions can already translate into tangible operational and business benefits.

Artificial intelligence also supports quality control in warehouse processes. As the report indicates, image analysis solutions can automatically detect picking errors or damage to parcels before they leave the warehouse.

The development of AI is also changing the way logistics operators work with their clients. Tools that facilitate access to information, process automation, and faster decision-making are becoming the new standard.

Generative AI is also gaining significance, particularly in supporting customer service. As explained in the report, solutions based on language models can automatically retrieve order data and draft personalized responses to client inquiries. This reduces service times and minimise the time spent manually searching for information.

“The 3PL operator has long ceased to be merely a provider of warehousing and transport services. More and more often, they act as a strategic partner helping clients better understand data, anticipate demand shifts, mitigate risks, and boost the efficiency of the entire supply chain,” emphasizes Rafał Woźniak.

Consequently, logistics is gradually shifting from reacting to problems to anticipating them, with data and AI becoming the most vital tools driving this transformation.