How Uber Freight’s AI is Revolutionizing Supply Chain Management

Three years ago, as the pandemic caused chaos for companies of all sizes, Colgate-Palmolive’s chief supply chain officer, Luciano Sieber, orchestrated a “logistics blitz.” This initiative significantly enhanced Sieber’s understanding of how Colgate-Palmolive moves its products globally. However, it also left him with a new dilemma: an overwhelming amount of data.

Fortunately, his search for a solution led him to Uber Freight, a subsidiary of Uber that has been at the forefront of logistics and analytics innovation. Approximately a year ago, Colgate-Palmolive began to utilize Uber Freight’s Insights AI, a logistics-focused large language model (LLM) designed to harness vast amounts of data through artificial intelligence. This partnership marks a crucial milestone in transforming supply chain management, and now, Uber Freight is formally launching a suite of AI features to shippers worldwide.

A Strategic Embrace of AI

Uber Freight isn’t alone in this endeavor; companies like Flexport are also attempting to leverage AI technologies to streamline operations. However, Uber Freight’s long-standing relationships and comprehensive knowledge base — built over the eight years since its inception — position it uniquely to make a significant impact.

“Supply chain is inherently a data-rich problem. It’s complex, it’s nuanced, and AI can serve a fundamental role in shaping it and accelerating it,” said Uber Freight founder Lior Ron in a recent interview. This insight encapsulates the critical role of AI in managing supply chains, underscoring the ongoing evolution of logistics driven by data and technology.

Evolution from Brokerage to Service Provider

When Uber Freight began its journey in 2017, it operated primarily as a straightforward brokerage designed to connect long-haul truckers with shippers. However, it has transformed into a comprehensive service provider for companies shipping goods across the globe. This shift reflects a broader trend among companies striving to adopt cutting-edge technologies to optimize operations.

Ron emphasized that AI has been integral to Uber Freight’s strategy from the start. Despite initial challenges in deploying advanced generative AI capabilities, the technology is now “battle tested” and delivering remarkable results. Uber Freight boasts an impressive accuracy rate of 98% for its Insights AI model, which is trained on data pertaining to the $20 billion worth of freight the company manages annually.

Quick Access to Foresight

With the new features, customers can quickly access a wealth of insights into their supply chain operations. For example, users can inquire about the worst-performing origin points for shipments or query specific data regarding shipments to partners like CVS in 2023. The system’s ability to interpret complex queries instantly is revolutionizing the traditional approach to data analysis — moving from days-long wait times for reports to real-time responses.

“This allows a customer to gain insights on their network much faster, nearly instantly, as opposed to waiting weeks for analysis and presentations,” noted Ron.

Collaboration with Colgate-Palmolive

Colgate-Palmolive has been a key partner in testing and utilizing these innovative AI tools. The company already provides a suite of AI models to its employees and stresses the importance of AI ethics training. This commitment to technology has allowed Colgate-Palmolive to enhance efficiency and deliver greater value.

Sieber explained how Insights AI has enabled his team to pinpoint carriers that are not delivering on their contractual obligations. By diagnosing issues in real-time, Colgate-Palmolive can either incentivize compliance or consider alternate carriers, drastically improving operational effectiveness.

Proactive Integration for Future Solutions

Looking forward, both Sieber and Ron anticipate that the next phase of AI integration will focus on proactive solutions, such as alerts for cost savings or faster shipping routes. While individual suggestions might only save a few hundred dollars, these savings can aggregate into substantial reductions in logistics costs across expansive networks.

Sieber humorously noted that Colgate-Palmolive’s chief financial officer is particularly pleased with the improvements. “He loves to see logistics costs coming down,” he remarked.

Conclusion: The Future of Supply Chain Management

As of 2023, Uber Freight and its Insights AI are reshaping the possibilities within supply chain management, demonstrating a substantial commitment to enhancing operational efficiency through artificial intelligence. By tapping into extensive data-driven insights and establishing strategic partnerships, companies like Colgate-Palmolive are not only managing their supply chains more effectively but also setting a precedent for the industry.

As the landscape of logistics continues to evolve, embracing AI technologies will be crucial for any company that aims to stay competitive in an increasingly complex global shipping environment.

For those interested in learning more about supply chain innovations and how AI can bridge the gap between logistics and technology, be sure to explore some of our other articles on logistics, artificial intelligence, and data analysis.