Three years ago, as the pandemic disrupted businesses globally, Colgate-Palmolive’s Chief Supply Chain Officer, Luciano Sieber, led a “logistics blitz” that provided valuable insights into the company’s global product movement. However, this also resulted in an overwhelming amount of data for Sieber to manage.
To tackle this challenge, Sieber partnered with Uber Freight, which has been developing innovative artificial intelligence tools. Colgate-Palmolive emerged as one of the first to adopt “Insights AI,” a logistics-focused large language model (LLM) designed to handle large data sets effectively.
Recently, Uber Freight has officially launched a range of AI features as part of its supply chain software, significantly expanding Insights AI. This includes over 30 AI agents aimed at executing crucial logistics tasks throughout the freight process. Similar initiatives are also underway at Flexport and various startups, all striving to enhance supply chain efficiency using AI technology.
Lior Ron, founder of Uber Freight, emphasised that the complexities of the supply chain create a “data-rich problem” where AI can play a transformative role. Since its inception in 2017, Uber Freight’s evolution from a straightforward brokerage to a comprehensive service provider has positioned it well within the logistics industry.
Ron has leveraged his extensive background in AI, initially sparked during his academic studies and further developed at Google Maps, to drive Uber Freight’s mission. Two years ago, the team began experimenting with advanced generative AI, which initially posed challenges due to inaccuracies. However, their technology now boasts an impressive 98% accuracy rate.
With Insights AI, Uber Freight enables clients to query data regarding their supply chain much more swiftly than before. Customers can generate detailed reports on logistics performance almost instantaneously, eliminating the old method of waiting weeks for analyses.
Colgate-Palmolive, which already provides its employees with various AI tools and training in AI ethics, has found the collaboration particularly beneficial. Sieber noted that Insights AI has helped the company discern which carriers are underperforming against their contractual obligations. This real-time data analysis allows for immediate problem-solving, a daunting task when managing thousands of diverse carriers.
As both Sieber and Ron considered further possibilities for AI integration, proactive solutions came to the fore. Uber Freight aims to implement alerts for customers like Colgate-Palmolive, highlighting overpayments on logistics routes or suggesting faster shipping options. While individual savings might be modest, the cumulative impact across an entire transportation network can be substantial.
Sieber’s CFO appreciates the newfound cost-reduction capabilities enabled by Uber Freight’s tools, signalling a trend towards more efficient logistics management in the face of varying operational complexities.
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