GenAI will Enable Logistics Leaders to Derive Quicker Value from Additional Data Sources, Aiding Logistics Operations.
By 2028, 25% of all logistics key performance indicator (KPI) reporting will be powered by generative AI (GenAI), according to
'GenAI presents an opportunity for logistics leaders to uncover additional insights from logistics data and drive operational efficiency,' said
According to a Gartner survey of 127 supply chain leaders, conducted in
KPI reporting helps logistics leaders track operational performance against targets and make future projections. Many companies, however, struggle to efficiently gain insights, often overlooking difficult to access data sources and spending vast amounts of time manually reviewing documents, correspondence and transcripts.
GenAI's ability to use natural language processing to query and display KPIs enables logistics leaders to quickly summarize multiple data sources to draft scorecards, while also enabling prompts to present and explain results, conduct root cause analysis and analyze supplier data to evaluate performance.
'The ability to gather and consolidate different data sources will remove obstacles that logistics leaders currently run into,' added West. 'Moreover, the ability to understand where challenges are occurring in real time will enable faster corrective action to improve logistics performance, in turn driving operational and financial results.'
Understanding Organizational Readiness and Demonstrating Value
As logistics leaders consider where GenAI can support KPI reporting, it will be critical to assess their organization's level of maturity, culture, internal capability and data and talent availability prior to implementation.
'As with any new technology, evaluating your organization's readiness prior to beginning implementation is key,' said
It's also important to consider how and when logistics leaders will demonstrate value to leadership. Taking advantage of KPI reporting through embedded options in solutions or technology already used by the organization will drive quicker wins. As GenAI matures, logistics leaders may be able to build these models on top of their internal datasets, making queries for KPI metrics and reporting easier and more robust and accurate.
Gartner clients can read more in Predicts 2024: Logistics and Determine Generative AI Use Cases That Work Best for Logistics. Nonclients can read more about
About Gartner Supply Chain Symposium/Xpo
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