Why Supply Chain Could Be Ground Zero for AI

The best AI applications in supply chain may not start with technology. They start with the task to be done.Messy, irregular, or open-ended tasks might not be there yet. But data-rich, repeatable, goal-driven workflows are already proving fertile ground for early success and long-term compounding gains.

Amir Taichman
Founder & CEO
May 29, 2025

Some parts of business run on vibes. Supply chain doesn’t.

It’s full of things that creep up on you. A wrong item packed in a box. A delay you only discover when it’s already happened. It's a world where little mistakes compound into big problems. And that’s exactly what makes it a fertile ground for AI.

While much of the attention around generative AI has been focused on writing emails and polishing presentations, we’ve been more interested in invoices and containers. Not because it’s more glamorous, but because the environment is better suited to what AI actually needs.

AI doesn’t thrive on hype. It needs structure, repetition, and feedback. And supply chains happen to offer all three.

What Makes a Task Right for AI?

We’ve been thinking about this a lot. Not every role or workflow is ready for AI. But some stand out and they tend to share three characteristics:

  1. High Volume - AI improves with repetition. Tasks that occur 10,000 times a week like freight quotes, inventory checks, and PO reconciliations offer far more potential than something that happens once a quarter.
  2. Structured Data - The supply chain may not always be clean, but data is organized and plentiful. Timestamps, weights, SKUs, carrier codes — this kind of data is ideal for AI to parse and learn from.
  3. Outcome-Oriented - Did the shipment arrive on time? Did we overpay? Should we have taken a different route? These are not open-ended questions. There’s a clear answer and that clarity makes it easier to train models toward measurable results.

When a task is frequent, structured, and tied to a tangible outcome, it becomes a prime candidate for AI support.

Consider Freight Audit as an example

Freight invoice audit is dull, repetitive, and hugely important. Humans don’t like doing it, and when they do, they usually spot the obvious stuff and miss the edge cases. AI, on the other hand, is relentless. It compares every line, every charge, every contract. It never gets tired. And when trained on your real-world billing practices, it gets frighteningly accurate.

More importantly, audit has knock-on effects. It reveals patterns. Done right, it helps pinpoint recurring breakdowns and systemic inefficiencies. It becomes the operational feedback loop that other decisions can plug into.

Contract negotiation is another area that lights up.

Less frequent than audit, but no less impactful. Contract negotiation is fundamentally a data problem: historic rates, performance metrics, SLAs, and risk thresholds. This is where AI shows its value in augmenting decision-making by surfacing patterns, highlighting outliers, and even simulating "what if" scenarios. Think of it as a powerful research assistant that never sleeps.

A few other good examples worth mentioning:

A few areas are already showing promise, with potential to scale further:

  • Carrier Selection: Choosing the right carrier based on historical outcomes, not just rates.

  • Shipment Booking: Matching POs to contracts and booking accordingly.

  • Payment Automation: Working with audit and contract data to streamline accurate payments.
  • Exception Handling: Catching anomalies before they turn into delays. This includes missed transshipments, cold chain breaches, ripple effects from port disruptions.

  • Inventory Replenishment: Using signals like sales data, weather, or marketing events to improve reorder accuracy.

  • Customer Service: Answering the same question 10,000 times, i.e. “Where’s my order?”, with minimal human involvement. This frees up your logistics customer service team for more complex cases. 

A Shift in Mindset

What this all points to is a mindset shift: The best AI applications in supply chain may not start with technology. They start with the task to be done.

Messy, irregular, or open-ended tasks might not be there yet. But data-rich, repeatable, goal-driven workflows are already proving fertile ground for early success and long-term compounding gains.

This is why we keep coming back to audit and negotiation. They’re clear, measurable, and already showing results. And more importantly, they’re interconnected. Audit is informed by contract terms. Negotiations are shaped by historical audit data. The loop gets tighter. The system gets smarter.

That’s the bar. Not whether it’s exciting. But whether it works, and whether it scales.

Looking Ahead

AI won’t fix everything. It won’t eliminate chaos. And it certainly won’t make the containers move faster (not yet, anyway). But used in the right places, by the right teams, it can remove friction, reveal insight, and quietly transform the way supply chains run.

And maybe the most telling sign that it’s working? You won’t notice it. The task just gets done better, faster, and with fewer surprises.