AI in Supply Chain: The New Frontier
AI is shaking up the supply chain, transport, and logistics sectors with the subtlety of a freight train. Whether it’s optimizing route planning, sharpening demand forecasts, refining inventory management, or tackling last-mile delivery, AI is the key player in driving efficiency and interoperability. This isn’t just about futuristic tech; it’s about transforming the nuts and bolts of how goods move around the globe.
Take CN, for example—a rail giant that’s throwing its weight behind AI to keep its sprawling network running smoothly. Stretching across Canada from coast to coast, CN’s rail network is a beast that requires constant vigilance. Enter AI. CN has poured resources into innovative technology to boost the safety, reliability, and efficiency of its railroad operations, making AI an integral part of its strategy.
AI-Powered Rail Inspections: A Game-Changer for CN
Imagine a world where trains inspect themselves in real-time, without slowing down. That’s what CN’s Automated Inspection Portal delivers. This high-tech system uses machine vision—a specialized branch of AI with deep learning capabilities—to provide a 360-degree view of trains as they zip through the network at full speed. It’s like having a tireless, omnipresent inspector on duty 24/7.
Dominique Malenfant, CN’s Executive Vice-President and Chief Information and Technology Officer, is bullish on the results. “The quantity of rail inspections has improved by a factor of ten,” Malenfant said during a panel at ALL IN. “It’s a challenging task, but the results are spectacular.” The impact? CN’s ability to detect mechanical defects and proactively identify railcars needing maintenance has never been sharper. This isn’t just incremental improvement; it’s a paradigm shift.
But CN isn’t stopping with railcars. The tracks themselves are under the AI microscope. With AI models trained to monitor the rails, the company can inspect more frequently than any human team ever could. It’s the kind of advancement that turns routine maintenance into a precision science.
AI in Marine Transport: Sailing Smarter, Not Harder
Meanwhile, out at sea, AI is steering the ship—literally. Brian Hatter, President of True North Marine, is leveraging AI to rethink how vessels navigate the oceans. Traditional routes, governed by centuries of practice and seasonality, are being upended. Now, AI crunches decades’ worth of weather data to design routes that allow ships to glide into port just in time. The result? Less fuel burned, fewer emissions, and reduced bottlenecks at ports.
“We’re assessing what the ship’s capabilities are, what the weather is, and how it’s changing, and adjusting the speed and route as we go along,” Hatter explained. The payoff? A massive reduction in fuel usage—between five to ten percent savings on average. For ships that can consume up to five metric tons of fuel per day, these savings are a game-changer. Across a fleet of hundreds, this efficiency translates to thousands of liters saved daily—a victory for both the bottom line and the environment.
Collaborative AI: The Future of Supply Chain Ecosystems
The magic of AI doesn’t stop at operational efficiency; it’s also knitting together the complex web of partnerships that make the supply chain tick. CN’s Malenfant emphasizes the importance of collaboration within this massive ecosystem. “The rail network is a massive ecosystem of partners,” he said. AI is the glue that binds these partnerships, ensuring that goods move seamlessly from ships to trains to trucks, with each player in the chain working in harmony.
In this interconnected world, even competitors become collaborators. “We see our rail competitors as partners as well,” Malenfant noted. It’s a new way of thinking about competition—one where AI fosters cooperation to the benefit of all.
The Road Ahead: AI’s Ongoing Impact on Supply Chain, Transport, and Logistics
As AI continues to weave itself into the fabric of supply chain, transport, and logistics, the possibilities are limitless. From real-time rail inspections to AI-driven marine navigation, the technology is transforming industries that once seemed impervious to change. The future? It’s a world where AI doesn’t just support these sectors—it drives them, creating a smarter, more efficient, and sustainable global supply chain.