The global trade landscape is in a state of constant flux, shaped by emerging technologies, evolving regulations, and unpredictable market dynamics. Amidst this backdrop, navigating the complexities of logistics and supply chain management is more challenging — and more crucial — than ever. So, what’s really changing, and what remains the same?

To tackle these questions, Eric Johnson, Senior Technology Editor at the Journal of Commerce, sat down with host Grant Sernick, 3rdwave’s Head of Sales and Marketing, for an episode of the Trade Talks podcast to discuss everything from the impact of artificial intelligence to the resilience of traditional shipper-carrier relationships and more.

Listen to the on-demand podcast now, or keep reading to learn the highlights of the discussion.

A Snapshot of the Industry’s Evolution

Grant began by asking Eric what significant changes he’s observed in logistics over the years. “While we’ve seen some tech advancements, like the rise of digital platforms, a lot of the conversations I’m having today aren’t too different from those a decade ago,” Eric shared. Despite all the talk of digital transformation, core aspects like shipper-carrier relationships and reliance on freight forwarders remain largely unchanged. He added, “We’re still dealing with disruptions—rail strikes, canal blockages—you name it. But now, we’re looking to technology to help navigate these challenges.”

Key Takeaways

During their conversation, Eric and Grant highlighted several pivotal trends and challenges shaping the logistics and supply chain landscape today. From the transformative role of AI to the pressing need for greater data integration, here are the key insights that international shippers and BCOs should keep in mind.

AI: The Game-Changer for Supply Chains

Eric highlighted how AI, especially in Intelligent Document Processing (IDP), is turning information into actionable data. “For years, PDFs and paper were the standard, but AI is finally allowing us to transform that into real data,” he explained. By automating repetitive tasks like invoice processing and customs documentation, AI is freeing up human resources to focus on strategic challenges, making supply chains more efficient and resilient.

Bridging the Data Divide

One of the biggest challenges in logistics is the disconnect between product-level data and shipment-level data. “Inside companies, data is managed at the product level, but the supply chain operates at the shipment level,” Grant pointed out. Eric agreed, emphasizing the need for cross-functional teams to break down data silos. “It’s not just about having the right tools; it’s about getting everyone on the same page,” he said.

Forwarders Need to Evolve

“Forwarders need to offer more than just logistics — they need to provide visibility into product-level data as well,” Grant said. Eric added, “Some forwarders get it, but many are still stuck with legacy systems. The cost of not adapting will be much higher in the long run.” He suggested that forwarders leverage AI to automate data collection and analysis, providing real-time insights that are crucial for modern logistics.

Freight Rates: A Volatile Landscape

The unpredictability of freight rates is a major challenge for logistics professionals. “We’ve seen rates swing like a pendulum,” Eric remarked. “Traditional methods of managing rates just don’t cut it anymore. You need more sophisticated tools and analytics to keep up.” Grant highlighted the role AI could play in this scenario, providing real-time insights and helping companies predict cost fluctuations before they occur.

Investing in LogTech: A More Cautious Approach

When discussing logistics technology (LogTech) investments, Eric noted a shift towards more cautious, sustainable investment opportunities. “During the pandemic, we saw a gold rush of investments into LogTech startups. Now, the dust has settled,” he said. He pointed to digital twins as a promising area, allowing companies to simulate different scenarios and optimize operations proactively.

Procurement: The Backbone of the Supply Chain

“Procurement isn’t just about cutting costs; it’s about adding value,” Eric emphasized. Companies need to use technology to gain detailed insights into procurement activities, ensuring they’re not just meeting current demands but are prepared for future challenges. Grant added that many companies still rely on outdated practices and need to leverage AI to analyze data and identify the best suppliers.

Compliance: A Moving Target

With constantly evolving regulations, staying compliant can be tough. “AI can help here, too,” Eric said. It can monitor compliance status in real-time, alerting companies to potential risks before they become issues. Grant agreed, stressing that an AI-driven compliance system is almost a necessity to protect a company’s reputation and avoid fines.

The Consumerization of Logistics

“Consumers today expect the Amazon experience from every company,” Eric said, highlighting the pressure on logistics providers to offer fast, reliable, and transparent services. Real-time tracking and last-mile delivery solutions are becoming essential. “The bar is set high, and it’s only going to get higher,” Grant added.

Sustainability: More Than a Buzzword

Sustainability is becoming increasingly important in supply chain management, driven by consumer demand and regulatory pressure. “AI and IoT are helping companies monitor and reduce their environmental footprint,” Eric noted. Whether it’s optimizing routes to reduce fuel consumption or using blockchain for transparency, technology is key. “It’s not just about doing good; it’s good business,” Grant pointed out.

Looking Ahead

In conclusion, Eric and Grant reflected on the road ahead for the logistics and supply chain industry. “It’s going to be a blend of old and new,” Eric said. “The companies that can integrate traditional methods with cutting-edge technology are the ones that will come out on top.” Grant added, “The challenges are real, but so are the opportunities. The key is to stay adaptable and open to change.”

Listen to this podcast in its entirety to gain more insights.

Contact us to learn more about 3rdwave’s global TMS for supply chain management.

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