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Technology Strategy, Not Technology Noise: A Practical AI Playbook for Supply Chain Leaders

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Small and medium-sized enterprises face limited budgets, uneven digital foundations, and an overwhelming number of technology choices. Their experience offers a useful lesson for larger supply chain organizations: start with the business problem, use partnerships selectively, and treat technology as a means rather than the strategy itself.

Supply chain organizations do not suffer from a shortage of technology options. They face the opposite problem: too many technologies, too many promises, and too little time to determine which investments will create measurable operational value.

Artificial intelligence, digital twins, autonomous agents, control towers, knowledge graphs, robotics, advanced planning platforms, and real-time visibility systems are all competing for executive attention. New capabilities are appearing faster than most organizations can evaluate them, integrate them, or connect them to improvements in cost, service, inventory, resilience, or growth.

For small and medium-sized enterprises, this challenge is especially acute. Their technology budgets are smaller, their digital infrastructure is often less mature, and they have fewer people available to assess competing platforms. A poor investment decision can consume resources that would otherwise support sales, operations, product development, or customer service.

The same problem exists in larger organizations. Manufacturers, retailers, distributors, and logistics providers also struggle to distinguish strategic technology investments from technological noise. Their greater budgets can sometimes make the problem worse by allowing disconnected pilots, redundant applications, and overlapping platforms to proliferate without a common operating strategy.

The central lesson is straightforward. Technology should support the operating strategy, strengthen a defined capability, and improve a measurable business outcome. It should not become the strategy itself.

Start with the Operational Problem

Many technology initiatives begin with the wrong question. Executives ask which AI model, software platform, or emerging application the organization should adopt before agreeing on the operational problem that needs to be solved.

A better starting point is to examine where decisions are slow, information is fragmented, or operating performance is breaking down. Can planners respond to demand changes more quickly? Can procurement teams identify supplier risk earlier? Can transportation managers spend less time resolving routine exceptions? Can warehouse operators improve labor productivity without compromising safety or service?

These are operational questions rather than technology questions. Once the problem is clearly defined, the organization can determine whether the appropriate response is AI, workflow automation, analytics, better systems integration, or a redesign of the underlying process.

That distinction matters because not every operational problem requires advanced AI. In some cases, the greater value may come from cleaning master data, eliminating a manual handoff, standardizing a planning process, or connecting two systems that already contain the necessary information.

An organization that begins with the technology often ends with a pilot searching for a business case. An organization that begins with the operational problem has a far better chance of selecting the right tool and measuring whether it works.

Technology Must Align with the Company’s Mission

A World Economic Forum Strategic Intelligence briefing on small and medium-sized enterprises argues that innovation should align with an organization’s mission and values. That principle has direct implications for supply chain technology strategy because the right investment depends on how the company intends to compete.

A company competing primarily on cost should prioritize technologies that improve asset utilization, inventory productivity, sourcing efficiency, and transportation economics. A company competing on service should focus more heavily on order reliability, responsiveness, visibility, and exception management.

A manufacturer operating in a highly regulated industry may place greater emphasis on traceability, compliance, auditability, and supplier qualification. A business that has made sustainability central to its market position may prioritize energy efficiency, waste reduction, emissions measurement, and lower-impact sourcing.

In each case, the technology portfolio should reinforce the company’s value proposition. The relevant question is not whether the technology is sophisticated or widely discussed. It is whether it improves an outcome that matters to the business and supports the way the organization creates value for customers.

Adopting a platform because it is fashionable, because a competitor announced a pilot, or because a vendor delivered an impressive demonstration can dilute both capital and management attention. It can also create a collection of disconnected tools that perform isolated tasks without improving the larger operating model.

Digital Foundations Matter More Than Individual Models

AI discussions frequently concentrate on selecting the right model. In operational environments, however, the quality of the digital foundation is often more important than the sophistication of the model placed on top of it.

An advanced AI system cannot reliably optimize a supply chain when product identifiers differ across systems, supplier records are duplicated, inventory data is stale, or transportation events cannot be reconciled with customer orders. The model may produce a polished answer, but the recommendation will still be built on incomplete or contradictory information.

Supply chain organizations typically operate across ERP, transportation management, warehouse management, order management, procurement, planning, customer service, and supplier systems. Each application may contain part of the operational truth, but few contain the complete context needed to evaluate a decision.

The value of AI rises when those systems can provide consistent information through governed data models, modern interfaces, and clearly defined ownership. Before investing heavily in autonomous decision-making, organizations should determine whether their definitions of products, suppliers, orders, shipments, and locations are consistent across the enterprise.

They should also examine whether operational data is current, whether access controls are appropriate, and whether the organization can trace the information used to generate a recommendation. Without that discipline, AI can make poor information move faster rather than make the organization more intelligent.

This foundational work is less visible than launching an AI assistant or announcing a new pilot. It is also far more likely to determine whether the investment can eventually scale.

Choose Carefully Where to Build

The World Economic Forum briefing also highlights the importance of networks and partnerships for smaller companies. That lesson is particularly relevant to supply chain AI because organizations rarely need to build every technical capability internally.

Most companies do not need to create their own foundation models, retrieval engines, optimization platforms, or integration frameworks from the ground up. They can combine commercial technology with proprietary operational data, domain knowledge, business rules, and established workflows.

The competitive advantage does not necessarily come from inventing every technical component. It often comes from assembling those components into a system that reflects how the company operates and captures the knowledge that differentiates it from competitors.

A mid-sized manufacturer may use an established AI platform to analyze production, quality, or sourcing data. A regional distributor may add an AI planning capability to its existing ERP rather than replace its entire application landscape. A logistics provider may deploy a commercial exception-management platform and enrich it with its own operating procedures, customer commitments, and carrier-performance history.

Partnerships allow smaller organizations to conserve capital and technical resources while concentrating on the processes and knowledge that create customer value. The same logic increasingly applies to larger enterprises, which can also waste significant resources rebuilding capabilities that specialized providers have already developed.

The strategic question is not simply whether to build or buy. It is which parts of the operating model the organization must own, where proprietary data or decision logic creates differentiation, and where an external platform can provide the capability more efficiently.

What the SME Experience Tells Supply Chain Leaders

Recent Goldman Sachs research highlights an important paradox in small-business AI adoption. Seventy-six percent of small businesses report that they are already using AI, and 93% say it has produced positive effects, including improvements in efficiency and productivity.

Yet only 14% have fully integrated AI into their core operations. That gap between usage and integration should resonate with supply chain executives because it reflects what is happening across many larger organizations as well.

Companies have moved beyond the earliest experimentation phase. They have copilots, generative AI tools, automated summaries, and isolated workflow pilots, but many have not connected those capabilities deeply into planning, procurement, manufacturing, logistics, customer service, and operational decision-making.

Goldman Sachs also reports that 67% of small businesses expect AI to contribute to revenue growth. At the same time, many continue to face data-privacy concerns, limited technical expertise, and difficulty selecting the right tools, while 73% say they need additional training and resources to capture AI’s full potential.

These figures point to a broader implementation problem. Adoption is advancing faster than integration, and using an AI tool is not the same as embedding AI into the operating model.

The experience of Dorfner, a medium-sized German supplier of fillers used in paints and composite materials, illustrates a more disciplined path. When the company explored using AI to support materials development, it considered creating its own software platform but ultimately partnered with a Silicon Valley provider that had already built an AI platform for the materials and chemicals industry.

Dorfner used the platform to run simulations and help customers adapt formulations incorporating its materials. The company did not need to become an AI software developer because its advantage came from knowing the materials, the applications, and the needs of its customers.

That distinction matters for supply chain organizations. A manufacturer does not necessarily need to build a proprietary foundation model to improve production planning, and a distributor does not need to create its own optimization engine to improve inventory deployment.

Similarly, a logistics provider does not need to develop every component of an exception-management platform internally. The strategic value may come from combining external technology with proprietary data, operating knowledge, customer requirements, and decision rules.

SMEs often have little room for expensive experiments that fail to produce measurable business value. That constraint can create a useful discipline that larger organizations should emulate, even when they have greater financial and technical resources.

AI Should Improve Decision Quality

Supply chains already generate enormous volumes of information. The more persistent constraint is the organization’s ability to convert that information into timely, coordinated, and economically sound decisions.

A planner may receive alerts from several systems but still lack a clear view of which exception deserves attention first. A procurement team may possess extensive supplier data but have no reliable way to assess how a disruption would affect production, customers, or revenue.

A transportation manager may know that a shipment is delayed without knowing which orders, inventory positions, and service commitments are most exposed. In each case, the problem is not a lack of data but a lack of connected decision context.

AI can help by identifying patterns, prioritizing exceptions, retrieving relevant information, comparing alternatives, and recommending actions. Its value should therefore be measured in decision terms rather than by the number of prompts submitted, users registered, or pilots launched.

Leaders should ask whether the organization identified a problem earlier, evaluated more realistic alternatives, or reduced the time required to reach a decision. They should also measure whether the technology improved forecast accuracy, service, cost, inventory, or resilience while preserving the human oversight required for consequential decisions.

Explainability matters as well. A recommendation that cannot be traced, challenged, or audited may be difficult to trust, even when the underlying analysis is technically sophisticated.

The strongest supply chain AI systems will not simply generate answers. They will connect enterprise information, preserve operational context, and improve the quality and speed of decisions across planning and execution.

Sustainability Can Produce Operational Returns

The World Economic Forum also identifies technology as an important tool for advancing sustainability objectives. In supply chains, sustainability and operational efficiency are often more closely connected than organizational structures or reporting processes suggest.

Better forecasting can reduce excess inventory, spoilage, and obsolescence. Improved routing can reduce empty miles, fuel consumption, and transportation emissions. Production and warehouse analytics can identify material losses, energy waste, and underutilized assets.

Supplier intelligence can improve visibility into sourcing practices and environmental exposure across the upstream network. Network-design tools can also help organizations evaluate trade-offs among cost, service, resilience, and emissions.

Technology can make those trade-offs more visible and consistent, but the objectives must still be set by the business. AI can evaluate alternatives, but it cannot independently determine how an organization should balance financial, operational, customer, and environmental priorities.

Sustainability initiatives are more likely to gain operational support when they are integrated into mainstream planning and execution rather than treated as a separate reporting exercise. The strongest projects improve both environmental and economic performance.

Innovation Requires Psychological Safety

Technology adoption is also an organizational challenge because employees must be willing to test new approaches, question outputs, report failures, and suggest improvements. An organization cannot learn from AI if the people closest to the work are afraid to challenge it.

This is particularly important because AI systems are probabilistic. They may produce strong results in one scenario and fail in another, and the employees working directly with the process are often the first to recognize where a recommendation is incomplete, impractical, or based on a faulty assumption.

Organizations need governance, but governance should not eliminate experimentation. A productive approach is to begin with bounded use cases in which operational risk is manageable, outcomes can be measured, and humans retain appropriate oversight.

The organization can identify a specific problem, test a narrowly defined solution, measure the operational result, and document errors before expanding. A failed experiment may reveal a data problem, process weakness, integration gap, or unrealistic assumption before the organization commits to a much larger implementation.

The greater danger is creating an environment in which employees are reluctant to admit that a system is not working. When technology is treated as infallible or criticism is interpreted as resistance, small errors can become embedded in larger operating processes.

Avoid the Technology Noise

The number of emerging technologies will continue to grow, but that does not mean every organization must pursue each one. Supply chain leaders need a repeatable method for separating strategic investments from market noise.

The evaluation should begin with the operational problem. The use case must be specific enough to measure, and the organization should understand which decision, workflow, or outcome it intends to improve.

The next question is whether the investment supports the company’s strategy. A technology should reinforce cost, service, resilience, growth, compliance, sustainability, or another clearly defined source of competitive value.

Leaders must then determine whether the required data is available and trustworthy. A sophisticated application cannot overcome a fundamentally unreliable information foundation, and the organization should not confuse a polished interface with operational accuracy.

The build, buy, or partner decision should be made with equal discipline. Companies should protect the data, process knowledge, and decision logic that differentiate them while avoiding the unnecessary recreation of broadly available technology.

Finally, success must be tied to operational and financial outcomes. The organization should know how it will measure value before implementation begins rather than searching for evidence of value after the technology has been deployed.

These questions impose discipline on a market designed to reward urgency. They also create a common language that operations, IT, finance, and executive leadership can use to evaluate competing investments. As AI capabilities continue to evolve, the organizations that outperform will not be those chasing every new technology announcement. They will be the ones that consistently connect technology investments to business strategy, operational priorities, and measurable results.

References

Goldman Sachs, “AI Presents a Major Opportunity for Small Businesses—But Support Is Needed to Close the Implementation Gap,” March 16, 2026.

World Economic Forum Strategic Intelligence, “Small and Medium-Sized Enterprises: Leveraging Technology,” curated by the University of Twente.

ARC Advisory Group, AI in the Supply Chain: Architecting the Future of Logistics with A2A, MCP, and Graph-Enhanced Reasoning, by Jim Frazer.

The post Technology Strategy, Not Technology Noise: A Practical AI Playbook for Supply Chain Leaders appeared first on Logistics Viewpoints.

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From Prompting to Persistent Decision Workflows in Supply Chain Operations

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Supply-chain AI is moving from episodic prompting toward persistent decision workflows. Repeated prompting can help an analyst solve a problem, but an operating capability must maintain context, monitor changing state, preserve decision logic, and connect recommendations to the work that follows.

A persistent decision workflow needs memory of the business object, the current plan, previous recommendations, overrides, policies, and outcomes. Without that continuity, users repeatedly reconstruct context and the model cannot reliably distinguish a new exception from a continuation of an old one. This persistence requirement becomes more important as the AI-agent execution model advances, because an agent cannot act safely if each interaction starts without durable operating state or prior decision context.

A mature design connects detection, context assembly, analysis, option generation, recommendation, approval, execution, and feedback. Some stages may use generative AI; others are better handled by optimization, rules, deterministic integrations, or human judgment. Persistence comes from the workflow and state model, not from the conversational interface.

The system should know what it may observe, recommend, prepare, execute, and escalate. Financial thresholds, customer impact, reversibility, confidence, and policy can determine the autonomy level. These controls make repeated decisions governable at scale.

ERP, planning, TMS, WMS, visibility, risk, and network platforms remain systems of record and execution; decision intelligence sits above and across them where context is assembled, tradeoffs are evaluated, actions are prioritized, and responses are coordinated. The persistent workflow therefore needs controlled write-back or action mechanisms, not only read access and summarization.

A decision workflow should record recommendations, human overrides, actions, and results. That creates an evidence base for improving rules, models, prompts, and autonomy thresholds. A chat transcript alone is not an operating learning system.

The architectural shift is from asking AI for help to designing a governed process in which intelligence participates continuously. That is a much stronger foundation for supply-chain decision support than repeated prompting.

Persistent decision workflows need memory and governance

A durable decision workflow has to preserve operating state across time. It should retain the event, relevant context, alternatives, constraints, prior decisions, approvals, overrides, actions, and outcomes so that the next step does not depend on a user reconstructing the problem in a new prompt. That persistence is what turns AI assistance into an operational capability.

Buyers should test continuity across handoffs. Can the system resume an unresolved decision after new data arrive? Can a different user see why an option was rejected? Can an agent act only within encoded authority? Can the resulting transaction be traced back to the evidence and rule that produced it? These are architecture questions, not user-interface questions.

Persistence changes the economics of decision support

When a workflow is persistent, the organization stops paying the same context-assembly cost every time a decision changes hands. New events can be evaluated against the existing state, prior alternatives remain visible, and approvals or overrides do not have to be reconstructed from email or chat history. That can reduce decision latency while improving traceability. It also creates a better foundation for automation because the system can distinguish a new decision from a continuation of an existing one. Buyers should therefore evaluate memory, state management, versioning, and auditability as operating capabilities rather than treating them as secondary AI features.

The 2026 Market Map is designed to help organizations understand the structure of the Decision Intelligence market, evaluate provider differences, and identify the capabilities most relevant to their operating environment. If your organization is evaluating Decision Intelligence platforms or clarifying where decision intelligence fits within the broader technology architecture, I would be glad to provide the Market Map brochure and discuss the evaluation questions and provider differences most relevant to your requirements.

Request the Decision Intelligence Market Map Brochure

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Providers may request the brochure, discuss the research framework, or contact me to confirm how their capabilities are represented in the market assessment.

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Why SKU Selection Can Make or Break an AS/RS Business Case

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Why Sku Selection Can Make Or Break An As/rs Business Case

Automated Storage and Retrieval Systems (AS/RS) have become a cornerstone of modern warehouse automation strategies. Whether the technology involves shuttles, cube-based systems, cranes, or goods-to-person solutions, the business case is typically built around a common set of objectives: increasing throughput, reducing labor requirements, improving accuracy, and maximizing storage utilization. Yet one of the most important decisions in any AS/RS implementation often receives far less attention than the technology itself: SKU selection.

Companies frequently spend months evaluating vendors, software platforms, and automation architectures. However, even the most advanced AS/RS can fail to deliver expected returns if the wrong products are placed into the system. In many cases, the difference between a highly successful deployment and a disappointing investment comes down to a simple question: Which SKUs should be automated?

The Purpose of AS/RS Is Productivity, Not Storage

One of the most common misconceptions about AS/RS is that its primary purpose is to store inventory. While increased storage density is certainly a benefit, the real value of automation lies in improving warehouse productivity.

AS/RS creates value by reducing manual labor associated with inventory handling. Every automated retrieval eliminates walking, searching, traveling, and material movement. The more frequently a product is handled, the greater the opportunity for automation to generate measurable savings.

This is where SKU velocity becomes critical.

Not all inventory contributes equally to warehouse activity. In most distribution centers, a relatively small percentage of SKUs generates a disproportionately large percentage of order lines, picks, and replenishment activity. These high-velocity items create the majority of warehouse work and therefore present the greatest opportunity for automation.

Why High-Velocity SKUs Belong in AS/RS

The strongest AS/RS business cases are generally built around automating the products that move most frequently.

Consider two products:

SKU A is picked 2,000 times per week.

SKU B is picked 10 times per month.

Both consume storage space within the AS/RS, but only one generates meaningful operational value.

Every time SKU A is automatically retrieved, labor is eliminated and productivity improves. Over the course of a year, those savings accumulate rapidly. SKU B, on the other hand, occupies valuable automated storage capacity while contributing very little to throughput improvement or labor reduction.

Simply put, high-velocity SKUs produce the transactions that justify the investment.

When organizations prioritize their fastest-moving inventory for AS/RS storage, they maximize:

Labor savings

Pick productivity

Throughput performance

Equipment utilization

Return on investment

This is why leading warehouse operators often use ABC inventory analysis to determine AS/RS eligibility, with A-items receiving priority placement within the automated system.

The Hidden Cost of Selecting the Wrong SKUs

Many automation projects encounter challenges not because the technology underperforms, but because the SKU strategy was flawed from the start.

A common mistake is attempting to place too many slow-moving products into the AS/RS simply because capacity is available. While this may increase storage utilization, it often reduces economic utilization.

An AS/RS filled with low-velocity inventory can create several problems:

Lower Labor Savings

Products that rarely move generate few picking events. As a result, automation replaces little labor activity, weakening the original business case.

Reduced Throughput Benefits

System resources become occupied storing inventory that contributes minimally to order fulfillment activity, limiting the throughput impact of the investment.

Longer Payback Periods

If labor savings and productivity gains fall below projections, the expected payback period can extend significantly beyond the original ROI model.

Capacity Constraints

As demand grows, operators may discover that high-velocity items no longer have sufficient space within the AS/RS because slower-moving products are consuming capacity.

The technology itself may be performing exactly as designed, but the financial return can still disappoint.

Focus on Activity, Not SKU Count

One of the most important lessons for warehouse leaders is that AS/RS success should not be measured by the number of SKUs stored within the system.

Instead, it should be measured by the percentage of warehouse activity flowing through the system.

For example, placing 1,000 high-velocity SKUs into an AS/RS that captures 80% of total picking activity will typically generate greater value than storing 5,000 SKUs that account for only 40% of picks.

The goal is not to automate the greatest amount of inventory.

The goal is to automate the greatest amount of work.

That distinction has significant implications for system utilization and overall project economics.

The Importance of Continuous SKU Evaluation

SKU selection should not be treated as a one-time exercise conducted during system commissioning.

Demand patterns change. Product popularity shifts. New items are introduced while others decline.

As a result, warehouse operators should periodically re-evaluate which products belong inside the AS/RS. High-velocity inventory today may not be high-velocity inventory next year.

Organizations that continuously align automated storage capacity with current demand patterns are often able to sustain higher utilization rates and stronger ROI throughout the life of the system.

ROI strategy

Consider a simple ROI example. Assume a company invests $5 million in an AS/RS and expects to save $1 million annually through labor reduction and productivity improvements. The original business case assumes the system will handle 75 percent of warehouse picking activity.

If the company correctly slots high-velocity products into the system, the projected labor savings can be achieved, resulting in a payback period of approximately five years. However, if management fills a large portion of the AS/RS with slow-moving inventory, the system may only process 40 percent of warehouse picking activity. Annual savings could fall to $600,000, extending the payback period from 5 years to more than 8 years. The technology has not failed. The SKU strategy has.

Final Thoughts

AS/RS technology continues to play an increasingly important role in warehouse automation strategies. Yet successful implementations depend on much more than selecting the right hardware or software platform.

The most effective AS/RS deployments are built around careful SKU selection.

High-velocity products generate the majority of warehouse activity and therefore create the greatest opportunity for labor reduction, throughput improvement, and productivity gains. Conversely, filling automated systems with low-velocity inventory can significantly dilute returns and extend payback periods.

For warehouse and supply chain executives, the takeaway is straightforward: an AS/RS should be designed around activity, not occupancy. The objective is not simply to store products in an automated system. The objective is to automate the work that drives operational performance. In most facilities, that means ensuring the highest-velocity SKUs receive priority access to valuable AS/RS capacity.

The difference between a successful automation investment and an underperforming one may ultimately come down to a decision that appears deceptively simple: choosing the right SKUs.

The post Why SKU Selection Can Make or Break an AS/RS Business Case appeared first on Logistics Viewpoints.

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What the Descartes Innovation Forum Said About the Next Phase of Logistics Execution

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After several days at the 2026 Descartes Innovation Forum, the clearest takeaway was not simply that artificial intelligence is coming to logistics. That part is already obvious. What stood out more was where the technology is moving and why it matters now.

Across the keynote, a transportation leadership panel, a Walmart Marketplace session, and a detailed discussion of carrier fraud, the same operating problem kept surfacing in different forms. Logistics organizations have more data, more applications, more connectivity, and increasingly more AI, but the real value comes when those capabilities help someone make a better decision or execute the next step faster, more reliably, and with the right controls in place.

That matters because the operating environment is not getting easier. Transportation capacity is tightening, rates and fuel costs remain under pressure, fraud and cargo theft are serious concerns, customer expectations continue to rise, and companies are being asked to improve productivity without adding equivalent labor. Against that backdrop, the most interesting technology at the Forum was not technology that simply explained what was happening. It was technology aimed directly at the work itself.

The Swivel-Chair Problem Is Still Real

Descartes opened the Forum with a problem that will sound familiar to anyone who has spent time inside transportation operations. Companies may have capable systems and extensive networks, yet much of the actual work still happens in the gaps between those systems.

Someone receives an email, opens a portal, checks a transportation system, moves to another application, sends a message, waits for a response, updates a record, and then starts the process again somewhere else. Descartes referred to this as the “swivel chair tax,” and the phrase worked because it described a problem technology has never fully eliminated.

The company’s answer is its Agent Control Plane, which is designed to expose capabilities from Descartes applications as skills that AI agents can use. As I covered earlier in Descartes Takes Agentic AI Into the Logistics Workflow at the Descartes Innovation Forum, Descartes was careful to distinguish that approach from a basic chat interface or a traditional workflow engine. The intent is to allow agents to work across applications and adapt as conditions change rather than simply follow a rigid sequence of predefined screens.

The live demonstration made the concept more tangible. Descartes followed an order across four representative companies—a retailer, freight forwarder, customs broker, and final-mile provider—with 15 Descartes products supporting 28 process steps behind the Agent Control Plane. Many of those steps happened without requiring a person to manually move information from one application to another.

What stood out to me was not the amount of automation. It was where Descartes chose not to automate.

At one point, an agent identified a carrier option that could save roughly 8 percent. The carrier, however, had a poor trust score, thin operating history, and other warning signs. Rather than make the lower-cost choice automatically, the system surfaced the decision for human review. The human declined the cheaper carrier.

That is a much more practical model for agentic AI in logistics than the idea of simply handing an operating process over to a machine. Descartes repeatedly described autonomy as a dial, not a switch. Agents have identities, their actions are logged, activity can be replayed, and organizations can determine which decisions require human approval.

The significance is straightforward. Once AI begins taking actions inside real operating processes, governance stops being an abstract IT issue and becomes part of the operating model.

The Market Is Making Better Execution More Valuable

The transportation leadership panel I moderated later in the Forum put that technology discussion into a much tougher operating context.

The freight market described by the panelists was not one of strong demand and easy growth. It was one in which relatively weak demand is colliding with meaningful reductions in capacity. One participant cited a decline in the number of trucking companies from roughly 340,000 to 282,000 and dry-van truckload rates up approximately 33 percent year over year. The larger point was that the conversation has shifted. Two years ago, shippers were largely focused on rates. Today, capacity availability and reliability matter much more.

That tighter environment also increases risk. When capacity is harder to find, there is greater temptation to use carriers that may not have passed the same diligence in a looser market. Panelists tied that pressure to growing concerns around freight fraud, cargo theft, safety, insurance, litigation, and carrier qualification.

As discussed in Transportation Leaders See AI Moving From Experiment to Operating Model at the Descartes Innovation Forum, the response is not simply to cut spending. Technology did not sound discretionary in this discussion. One participant described a single repetitive business activity being performed roughly 750,000 times per month, representing the equivalent of about 1,500 employee-hours per day. That is exactly the kind of workload where automation can move from being interesting to economically significant.

The panel also showed how quickly expectations around technology development are changing. Voice agents, email automation, operational workflows, data science, and agentic AI were all discussed as practical tools rather than distant possibilities. One participant described a proprietary TMS containing more than 30 million lines of code and roughly 2,000 database tables. A 12-person team working with AWS and Anthropic was then tasked with recreating the system using AI-assisted development and reportedly produced a replication in approximately six weeks.

Replicating a system is not the same as proving it in full production, so that example deserves some caution. Still, it shows how quickly the economics of software development may be changing.

Transportation technology has traditionally changed slowly because systems were complex, deeply integrated, and expensive to modify. AI may compress that cycle dramatically. For transportation leaders, that creates an interesting tension: the operating environment is getting harder at the same time that the technology available to respond to it is improving faster.

Walmart Brought the Conversation Back to the Customer

A Walmart Marketplace session provided a useful counterweight to the AI-heavy discussions elsewhere at the Forum. Bryce Caswell, Director of Ship with Walmart for Walmart Marketplace, focused on something much more basic: the customer promise.

Walmart described four foundations for marketplace success—assortment, listing quality, pricing, and shipping—and emphasized that the four are interdependent. Good assortment will not solve poor content. Good content will not offset uncompetitive pricing. And none of it matters if the seller cannot deliver the product when promised.

That may sound obvious, but it was one of the more useful reminders of the Forum. Logistics technology discussions can quickly become dominated by architecture, optimization, visibility, and AI. The customer evaluates something much simpler: did the order arrive when you said it would?

As I wrote in Walmart Is Turning Marketplace Logistics Into a Platform, Walmart’s emphasis was not simply on speed. Reliability and consistency mattered just as much. During holiday peaks, sellers were encouraged to protect inventory availability, leave enough time to move product into the fulfillment network, understand what they are promising, and then meet that promise.

The company is also trying to simplify the mechanics underneath that promise. Walmart Fulfillment Services provides pick, pack, and ship capabilities through Walmart’s fulfillment network, while its multi-channel model allows sellers to support multiple sales channels from a single inventory pool.

Ship with Walmart extends that logic into transportation by offering access to negotiated carrier rates, including national, regional, and LTL options, while adding certain protections around on-time delivery and lost shipments.

The larger point is that simplification has value only if it improves execution. Whether the tool is an AI agent or a fulfillment network, the objective is the same: remove unnecessary friction so people can focus on the decisions and exceptions that actually matter.

Fraud Changes the Meaning of Visibility

The Forum’s carrier fraud session added another layer to the discussion because it showed how operating data is being repurposed for trust.

Descartes demonstrated how MyCarrierPortal and MacroPoint can be used together to strengthen carrier vetting before a load is tendered. The process extends beyond checking insurance or basic carrier status. It can incorporate configurable risk assessments, tracking history, lane history, inspection information, validated users, equipment data, and driver-level tracking statistics.

That is a subtle but important shift in how transportation visibility data is used. Historically, tracking information primarily answered a familiar question: where is my load? Increasingly, that same information can help answer a different question: should I trust the party moving it?

The same theme runs through Descartes Expands Freight Fraud Prevention Across Carrier Vetting and Shipment Execution. Descartes showed how historical lane activity and tracking behavior can be used as additional carrier-vetting signals. Once a shipment is in transit, the Notification Center can surface route deviations and other exceptions that warrant attention without requiring someone to monitor every load manually.

ELD Plus adds another layer by allowing two tracking sources to be used within the same tracking session. If mobile-device data and telematics data begin to diverge, that mismatch becomes a signal that someone may need to investigate.

Carrier lookup goes further by combining information such as power units, active loads, tracking history, spoofing flags, and recent lane activity. The example used during the session was simple: if a carrier has 100 power units but appears to be active on 600 loads, that discrepancy may deserve a closer look.

More automation does not reduce the need for trust. It raises the stakes. If systems are going to make recommendations or take actions faster, the quality of the signals behind those decisions becomes even more important.

Execution Is Becoming the Real Battleground

Looking back across the Forum, I do not think the central story was simply AI. It was execution.

Descartes is trying to reduce the swivel-chair work that still exists between logistics applications and companies. Transportation leaders are looking for technology that can improve productivity and help them operate through a tighter, riskier freight market. Walmart is focused on simplifying fulfillment so sellers can keep the customer promise. Carrier-verification tools are turning tracking data into a source of trust as well as visibility.

Put together, that points to a broader shift in logistics technology. Software is moving closer to the actual transaction, the actual decision, and the actual exception. The value of that technology will increasingly be judged by whether it helps organizations act better, not simply see more.

The companies that benefit most will not necessarily be the ones with the most AI, the most dashboards, or the most data. They will be the ones that can connect intelligence to execution without losing control of the process.

For me, that was the real takeaway from the 2026 Descartes Innovation Forum. The next phase of logistics technology is not just about making systems smarter. It is about knowing when the system should act, when a person should decide, and how to make both work together fast enough to keep freight moving and the customer promise intact.

The post What the Descartes Innovation Forum Said About the Next Phase of Logistics Execution appeared first on Logistics Viewpoints.

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