AI and big data can help logistics companies navigate supply-chain disruptions

AI and big data technologies have the potential to enhance the agility and resilience of logistics companies facing supply-chain disruptions, suggests research published in the International Journal of Business Performance and Supply Chain Modelling. By analyzing responses from nearly 300 logistics professionals in Indonesia, the study found that digital capabilities aid companies in detecting disruptions, improving forecasting and decision-making, optimizing routing, and responding more swiftly to changing conditions.

However, the researchers caution that technology alone is not enough to help companies adapt to supply-chain uncertainties, such as geopolitical tensions, natural disasters, trade restrictions, labor disputes, regulatory changes, and energy insecurity. The study's findings align with dynamic capabilities theory, which posits that organizations must continuously identify changes, exploit opportunities, and reconfigure resources as circumstances evolve.

While the survey provides a snapshot of Indonesian logistics providers, the researchers believe the results could be applicable to other regions. They recommend further longitudinal and cross-country studies to validate these findings. The research indicates that AI and big data capabilities are associated with improved disruption detection, forecasting, decision-making, routing, and response speed among logistics providers in Indonesia.

However, the benefits are contingent on the organization's ability to translate information into adaptation and resource reconfiguration.