Tailwind #1 - Putting AI to Work in Supply Chains

“There is no bad weather, only bad clothing.” 

Growing up, I often heard the saying: “Es gibt kein schlechtes Wetter, nur schlechte Kleidung."  It means, “There is no bad weather, only bad clothing.” I quickly learned that complaining about storms won’t make them disappear. You must focus on the solution, not the problem. 

That’s why I am launching a newsletter here on LinkedIn. To review the challenges facing trade, but also the extraordinary opportunities presented by the next wave of logistics solutions; to catch the Trade Tailwinds, among the headwinds. 

This month, I am focusing on a generation defining technology, Artificial Intelligence (AI). Continue reading below for my take on this potent and transformative technology. 

Understanding the promise of AI in supply chains 

The promise of AI is clear.  Already in supply chains, AI can reduce costs by up to 15% (BCG) and cut errors in half (McKinsey). 

The fact is that AI’s promise is very real. Supply chain leaders understand this: 78% of executives back some level of AI investment. But the deeper, tougher question is whether businesses are really catching this tailwind or allowing the opportunity to drift away. While the vast majority (73%) of supply chain leaders plan to deploy AI, 62% have reassessed their plans due to technical and operational hurdles (EY). 

I am a strong believer that AI is a revolutionary development that can unlock immense value for supply chain customers and operators. Early adopters of AI in supply chain management achieved roughly 35% less inventory, and 65% higher service levels than slower-moving competitors (McKinsey). It promises to outpace human problem-solving and deliver efficiencies once thought impossible. 

But here’s the reality check: too often, AI is deployed at the surface level. Flashy dashboards, impressive demos – but little connection to actual operational decisions. In fact, McKinsey found that fewer than 20% of companies using AI have scaled it across their supply chain operations in a way that delivers meaningful bottom-line impact. (McKinsey). To unlock AI’s real power and create business value, it needs to be embedded deep into the logistical core and in the mindset of the people in the business. 

I see AI in supply chains boiling down to three key capabilities: 

• Visibility: Real-time transparency across your entire supply chain. 

• Prediction: The ability to foresee problems before they arise. 

• Action: Automated decision-making to adapt swiftly and keep goods moving. 

Let’s look at those capabilities in context. 

AI in action: AI vs Tariffs 

Tariffs are the biggest story of the moment. Few issues better illustrate the volatility of modern trade. Tariff shifts can be fast, frequent and fraught with uncertainty. They add layers of complexity to decision-making, often at the eleventh hour. And this is where AI proves its worth: 

• Visibility: When a new tariff is announced, the reaction time of traditional supply chains can stretch for days or even weeks. But an AI-powered system is already scanning regulatory databases, flagging risk exposure by country, supplier or SKUs, and mapping it against live orders 

• Prediction: By combining historical data, market trends, and policy analysis, AI models can identify patterns that may lead to new tariffs before they land. It can advise on mitigation scenarios: shift production, reroute freight, consolidate cargo, renegotiate terms.  

• Action: When geopolitical risks rise or tariffs shift, we have been able to help customers dynamically reallocate inventory or reroute flows to reduce costs and maintain continuity. In this instance, AI is a strategic defence against policy volatility. 

Practical steps to catch AI’s tailwind 

The best thing is that the building blocks of AI - data, automation, insight - are becoming more accessible, scalable and adaptable across businesses of all sizes. The key is knowing where to start. 

Here’s what it takes to catch the AI tailwind: 

• Clean, unified, accessible data is the foundation. Without it, AI is like putting a turbo engine on a broken chassis. Many companies are still dealing with siloed systems and patchy visibility. Fix this first. 

• Focus your first AI deployment on high-impact areas: demand planning, freight routing or warehouse picking. As DP World’s own operations show, even incremental AI use can yield big gains - up to 60% faster fulfilment and 55% faster issue resolution 

• AI doesn’t replace teams; it elevates them. But only if your teams understand how to use it.  In fact, a 2024 McKinsey report on AI in operations found that companies effectively using AI in their supply chain functions reported a 15% improvement in logistics efficiency and a 35% reduction in inventory-related costs. However, the same report warned that these benefits were mostly seen in organisations that had made parallel investments in workforce training (Forbes). At DP World, we’re investing heavily in AI literacy across our workforce to make the tech useful, not intimidating.  

• AI isn’t just about efficiency; it can also be a major sustainability lever. From route optimisation to smart inventory management, the carbon savings are real and measurable. For instance, beverage companies have utilised AI, IoT and real-time fleet management to reduce emissions from refrigeration, glass and water shipments by implementing new dispensing strategies for hospitality and residential use. (WEF)  If you’ve made it this far…  

That’s all for now! Thank you for reading. If this sparked an idea or if there’s a particular topic you’d like me to focus on next, I’d love to hear from you. Comment below and don’t forget to subscribe if you haven’t already.  

In the meantime, I encourage you to broaden your reading on AI. I’ve left some suggestions below – including my recent whitepaper with Dr. Chris Brauer on AI and supply chains.  

Further reading…  

• Supply Chain and Logistics for the Intelligence Age (DP World) 
• The AI-savvy leader (David De Cremer)  
• Competing in the Age of AI: Strategy and Leadership When Algorithms and Networks Run the World (Marco Iansiti & Karim Lakhani) 
• AI: Your Strategic Weapon Against Tariff Uncertainty In Global Supply Chains(Forbes) 
• Navigating global trade: AI solutions for tariff turmoil (WEF) 
• Why we must invest in talent and technology to transform the global supply chain (WEF)