While the traditional logistics ecosystem is often vulnerable to gaps and disruption, the advent of Generative AI (GenAI) could act as a unifying factor to achieve a more holistic value chain. Today, the application of cutting-edge technologies like the Internet of Things (IoT), augmented reality (AR), and artificial intelligence (AI) in logistics scenarios have been huge game changers, creating efficiencies and productivity boosts previously unimaginable. With a projected market growth of 5.25% annually between 2022 and 2027, the logistics industry in Asia-Pacific (APAC) needs to capitalise on new technologies available to stay ahead of the curve.
Amid surging ecommerce logistics demand, logistics operators have embraced digitalisation to scale their operations and elevate customer experiences more efficiently. Out of the available technologies, GenAI becomes pivotal in facilitating the processing of an exponentially growing volume and demand, allowing logistics operators and their customers to better access the global digital economy.
For example, GenAI can optimise decision-making processes by providing actionable insights. It is already delivering significant improvements across routine logistics operations in areas like demand forecasting for ecommerce logistics needs, delivery route optimisation, and more, complementing the workforce to enhance overall efficiency and productivity. As logistics operators integrate AI into existing systems as part of their digital transformation journey, this will free up resources to allow them to focus on other critical aspects that can drive growth and increase competitiveness.
In the APAC supply chain market, GenAI alone is expected to expand at the fastest rate between 2023 and 2032. As such, logistics operators must embrace it as a strategic necessity to stay ahead and effectively navigate the evolving supply chain landscape. GenAI’s multifaceted capabilities have the potential to revolutionise supply chain operations by making them agile, efficient, and customer centric. It empowers decision-makers, streamlines training processes, and acts as a catalyst in forging new digital frontiers, all while optimising logistics and ensuring compliance.
It is without a doubt that this emerging technology will play a leading role in the future of supply chains and logistics operators, and those that are adaptable in leveraging new technologies will stand to gain a significant competitive advantage.
This editorial piece was first published in The Paypers' Cross-Border Payments and Ecommerce Report 2023–2024, which taps into the fast-growing cross-border market and provides a comprehensive overview of trends and developments that are pivotal in this space, being the ultimate source of information for ecommerce businesses interested in expanding globally. William Xiong, Senior Vice President, Cainiao Group
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