but intelligent software agents programmed to make exquisitely nuanced logistics decisions will soon be at work in the commercial sector as well. Maybe.
Wouldn't you like end-to-end control of the entire logistics pipeline? Simultaneous planning and execution? A logistics control system that operated at all levels and during all phases of operations? A system that allowed multiple simultaneous communications and decision-making over a vastly complex, spread out theater of operations?
Well, of course you would, although it probably sounds as far-fetched as having psychic access to your customers' order planning, or complete control over the weather.
It's not. The U.S. military and the defense departments in other countries, including the UK and Australia, are shooting for these exact goals, and they're coming close to achieving them. It's all made possible by something called intelligent software agents (see box).
Ironically, intelligent agents were originally developed in the commercial sector, and advocates initially had high hopes for an early rollout there. Last year, we published a story about intelligent software, quoting several sources who promised significant pilot projects in the next year. That proved overly optimistic, and a year on, adoption in the commercial sector is still far from reality. In the interim, however, intelligent software agent technology has steadily found its way into mainstream military applications.
R & Defense
It may be that the military has pulled ahead simply because it needs this level of sophistication more than commercial shippers do. "People ask, why aren't you like Wal-Mart," says Mark Greaves, program manager at the U.S. Department of Defense's Defense Advanced Research Projects Agency (DARPA) in Arlington, Va. "I say, well we are like Wal-Mart except our stores are moving all the time and Christmas comes on a random date every year."
And so for now, the military's where the action is. "The military has been in the front of this agent stuff," confirms Dr. Noel Greis, director of the Center for Logistics and Digital Strategy at the University of North Carolina's Kenan-Flagler Business School. "In the commercial world, the interest in agents [really took off] during the e-commerce era, and most of the applications focused on the interface between the customer and the process." (Amazon.com, for example, uses intelligent agents to automatically recommend new titles based on the customer's previous purchases.) "The military is a bit different," says Greis. "They dug in immediately on how agents can help with internal processes, especially logistics—the deployment of people, ammunition, fuel, water. In the military, agents are part of this whole digitization of the battlefield and systemization of operations. They want information captured in real time so they can see how the environment is changing dynamically and make sense of the information coming in."
On that front, perhaps the most promising intelligent software system being developed in the United States is UltraLog. Project UltraLog was established by DARPA in 2001 to take over from the Advanced Logistics Project that ran there from 1996 to 2001.
The UltraLog project's stated goal is "to create a comprehensive capability [that] will enable a massive scale, trusted, distributed agent infrastructure for operational logistics to be survivable under the most extreme circumstances." In other words, researchers are seeking the best way to use smart technology for maximum operational efficiency in combat situations—with the ability to continue operating at 80-percent capacity with up to 45-percent information infrastructure loss, for example.
UltraLog's not the only project under way, however. Others include Control of Agent-Based Systems (CoABS, also under DARPA), and Log Net, a joint-venture between the University of North Carolina, software vendor Saffron Technology of Morrisville, N.C., and Boeing Inc., headquartered in Chicago, which is developing technology for the U.S. Marine Corps. The Office of Naval Research announced in August 2003 a $5.74 million contract with the University of Southern California and Vanderbilt University to use agent software developed by computer scientists at the two schools to handle Navy and Marine Corps pilots' schedules. There is also a more ambitious and long-term project called Future Combat Systems, fostered by the U.S. Army.
Ultra-quick response
There are two main advantages to using intelligent software agents to help out with dynamic logistics management— that is, logistics management that responds quickly to changing situations.
First, intelligent agents form a collaborative network and can act independently. They don't need to operate in lockstep with a "master" computer that's overseeing everything; they can make a request, say, from a transportation management system to a local shipper's office without going through the head office's computer banks. This is called a distributed system, and it mimics much more tightly the physical structure of a complex logistics network.
Second, intelligent software agents are able to make autonomous decisions that humans would likely make if only they had the time. This is where the technology intersects with artificial intelligence, although on a relatively small scale. Intelligent agents are programmed with parameters that cause them to make what humans would consider "good" decisions, and they interface with humans on overall plans that spring from those decisions.
"What we're trying to do is tackle something that is a critical need, which is to unload humans from a lot of the mundane tasks they need to do, and to get humans and computers to collaborate," says Dr. Andrew Lucas, managing director at Agent Oriented Software Pty Ltd., a Victoria, Australia-based technology firm. "If you could do that, you could get a lot done," adds Lucas, who's currently working for the U.S. Air Force Research Laboratory at the Wright-Patterson Air Force base in Ohio, applying intelligent agents to military simulation.
And you could get a lot done fast. Enlisting computers to collaborate and make decisions lets users create a top-level logistics plan for a major maneuver in under an hour instead of the weeks it would take using humans alone. The USC/Vanderbilt program researchers reckon intelligent software cuts down the time needed to produce a daily schedule for AV8-B Harrier jump jets from six hours to four minutes.
Furthermore, intelligent software gives users greater ability to predict and limit the loss of operability caused by damage to the logistics system. The DARPA UltraLog program stresses the capability to build clusters of intelligent software agents that adapt so they can function in damaged and stressed environments. The military needs these capabilities more than anyone else because, for them, a logistics hiccup might mean losing an entire port or fleet of aircraft.
Greis says that the Future Combat System will also concentrate on smart ways of figuring out when and how to restock supplies in the field. "What they'd like to do is to make a lot of the logistics processes—re-supply, moving materiel from boat to shore—as autonomous and automated as possible. Right now, someone gets on the horn and says: I need such and such, and they're just responding. What they'd like to do is to develop agent systems that are more anticipatory and also respond autonomously," says Greis.
Greis describes one test project conducted recently, where vehicles in the battlefield were fitted with sensors that relayed information about engine temperatures, water and oil levels and so on. The software agents made their own decisions about how much to re-supply, who would do it, when it would be done and how long it was going to take. "We've developed a system with mobile agents, learning agents, collaborative agents that work together to manage the logistics," says Greis. "We're moving away from the push model to more of a pull model of supply. It's the same concept as the commercial supply chain."
Other military forces are catching on, too. Dr. Lucas is doing simulation work for the Defence Science and Technology Laboratory (DSTL), part of the UK's Ministry of Defence. Lucas is also working with the Defence Science and Technology Organisation (DSTO) in Australia to apply his company's agent product to unmanned air vehicle mission management. The firm is also working with the military in Canada and France.
Beginning of a beautiful friendship
Lucas is confident this smart technology will end up in the commercial sector, but he doesn't expect to see widescale adoption for five years or so. "It's not being used in the commercial sector, but it's close," he says. "As a technologist, I recognize that risk management is a big element in introducing new technologies. It's about showing people you have a plan for proving the technology and reducing the risk to the customer, over a number of years, and we've chosen to do that with the military first."
Part of the problem is that the technology's not quite ready for prime time. "We don't want to minimize the extent to which we think this would be useful in the commercial world," says Tony Rozga, research fellow at LMI Government Consulting, a not-for-profit government consulting firm based in McLean, Va., that supports the UltraLog project. "It's just not there yet." LMI and DARPA have worked together to develop Cougaar, a computer architecture for distributed agents. Notably, it's been made "open source"—that is, non proprietary—to encourage commercial application.
Saffron Technology's co-founder, chairman and chief scientist, Manny Aparicio, says one obstacle to adoption in the commercial sector is the issue of trust, especially with learning agents—ones that gather information about habitual human preferences and responses over time. People are nervous about delegating responsibility to a piece of software, Aparicio says. But, once they learn to trust it, things change. "The user can have it set so it just makes recommendations, but then they might get bored seeing it's right all the time and let it build a whole re-supply strategy," Aparicio says. There's always a safety net, he adds. "Whenever an agent sees a situation it doesn't know, it can still send an exception back."
Meanwhile, Greis's Center for Logistics and Digital Strategy's new "Intelligent Enterprise Initiative" aims to help industry leverage advances in digital technology, especially intelligent agents, to redesign their business processes. Greis says the commercial logistics sector is still wrestling with collecting sufficiently fine-grain data to feed to intelligent agents—something the military is far ahead on. "As you get all this real-time information, the agents are going to become tools for interpreting that," Greis says. "So people are focused on the RFID part of the puzzle [for now], but ultimately the RFID and agents will be brought together."
What is intelligent software?
Intelligent software agents are a form of artificial intelligence —software packets that act as autonomous decision- making entities, capable of coming up with solutions to problems and acting on them automatically. Think of the job performed by a travel agent hired by a business manager who needs to schedule a meeting. The manager contacts the travel agent to deal with flight schedules and make rental car and hotel arrangements. The travel agent then works independently with the manager's assistant—who's planning other details of the meeting, such as time and the list of attendees— to coordinate efforts so that they fit in with personal schedules, location information, the other attendees and even the weather.
To the manager, the end result, ideally, is a simple set of outcomes—flights, hotel booking, a reserved conference room full of people he wants to meet with. But the travel agent and assistant have collaborated in choosing these outcomes from an almost infinite number of possibilities, many of them interrelated. Change one factor and you change others—flying direct rather than to the local airport means renting a car. A single hiccup can send the whole process back to square one—a crucial client becomes unavailable on those dates. And so on. People respond and make decisions as the situation changes.
Software agents do the same job. They are goal-oriented, autonomous, collaborative, adaptive, proactive and mobile. Further, they allow "systems of systems," meaning you can link any number of agents together to get on with highly complex and widely distributed series of tasks. In practical logistics operations, such as a theater of war, that means you can have data and business processes distributed throughout the operation, instead of centralized data warehouses with longreach data feeds. This makes the flow of information adaptable to fast-changing environments, according to DARPA. It's also more robust and more reliable.
Autonomous forklift maker Cyngn is deploying its DriveMod Tugger model at COATS Company, the largest full-line wheel service equipment manufacturer in North America, the companies said today.
By delivering the self-driving tuggers to COATS’ 150,000+ square foot manufacturing facility in La Vergne, Tennessee, Cyngn said it would enable COATS to enhance efficiency by automating the delivery of wheel service components from its production lines.
“Cyngn’s self-driving tugger was the perfect solution to support our strategy of advancing automation and incorporating scalable technology seamlessly into our operations,” Steve Bergmeyer, Continuous Improvement and Quality Manager at COATS, said in a release. “With its high load capacity, we can concentrate on increasing our ability to manage heavier components and bulk orders, driving greater efficiency, reducing costs, and accelerating delivery timelines.”
Terms of the deal were not disclosed, but it follows another deployment of DriveMod Tuggers with electric automaker Rivian earlier this year.
Manufacturing and logistics workers are raising a red flag over workplace quality issues according to industry research released this week.
A comparative study of more than 4,000 workers from the United States, the United Kingdom, and Australia found that manufacturing and logistics workers say they have seen colleagues reduce the quality of their work and not follow processes in the workplace over the past year, with rates exceeding the overall average by 11% and 8%, respectively.
The study—the Resilience Nation report—was commissioned by UK-based regulatory and compliance software company Ideagen, and it polled workers in industries such as energy, aviation, healthcare, and financial services. The results “explore the major threats and macroeconomic factors affecting people today, providing perspectives on resilience across global landscapes,” according to the authors.
According to the study, 41% of manufacturing and logistics workers said they’d witnessed their peers hiding mistakes, and 45% said they’ve observed coworkers cutting corners due to apathy—9% above the average. The results also showed that workers are seeing colleagues take safety risks: More than a third of respondents said they’ve seen people putting themselves in physical danger at work.
The authors said growing pressure inside and outside of the workplace are to blame for the lack of diligence and resiliency on the job. Internally, workers say they are under pressure to deliver more despite reduced capacity. Among the external pressures, respondents cited the rising cost of living as the biggest problem (39%), closely followed by inflation rates, supply chain challenges, and energy prices.
“People are being asked to deliver more at work when their resilience is being challenged by economic and political headwinds,” Ideagen’s CEO Ben Dorks said in a statement announcing the findings. “Ultimately, this is having a determinantal impact on business productivity, workplace health and safety, and the quality of work produced, as well as further reducing the resilience of the nation at large.”
Respondents said they believe technology will eventually alleviate some of the stress occurring in manufacturing and logistics, however.
“People are optimistic that emerging tech and AI will ultimately lighten the load, but they’re not yet feeling the benefits,” Dorks added. “It’s a gap that now, more than ever, business leaders must look to close and support their workforce to ensure their staff remain safe and compliance needs are met across the business.”
The “2024 Year in Review” report lists the various transportation delays, freight volume restrictions, and infrastructure repair costs of a long string of events. Those disruptions include labor strikes at Canadian ports and postal sites, the U.S. East and Gulf coast port strike; hurricanes Helene, Francine, and Milton; the Francis Scott key Bridge collapse in Baltimore Harbor; the CrowdStrike cyber attack; and Red Sea missile attacks on passing cargo ships.
“While 2024 was characterized by frequent and overlapping disruptions that exposed many supply chain vulnerabilities, it was also a year of resilience,” the Project44 report said. “From labor strikes and natural disasters to geopolitical tensions, each event served as a critical learning opportunity, underscoring the necessity for robust contingency planning, effective labor relations, and durable infrastructure. As supply chains continue to evolve, the lessons learned this past year highlight the increased importance of proactive measures and collaborative efforts. These strategies are essential to fostering stability and adaptability in a world where unpredictability is becoming the norm.”
In addition to tallying the supply chain impact of those events, the report also made four broad predictions for trends in 2025 that may affect logistics operations. In Project44’s analysis, they include:
More technology and automation will be introduced into supply chains, particularly ports. This will help make operations more efficient but also increase the risk of cybersecurity attacks and service interruptions due to glitches and bugs. This could also add tensions among the labor pool and unions, who do not want jobs to be replaced with automation.
The new administration in the United States introduces a lot of uncertainty, with talks of major tariffs for numerous countries as well as talks of US freight getting preferential treatment through the Panama Canal. If these things do come to fruition, expect to see shifts in global trade patterns and sourcing.
Natural disasters will continue to become more frequent and more severe, as exhibited by the wildfires in Los Angeles and the winter storms throughout the southern states in the U.S. As a result, expect companies to invest more heavily in sustainability to mitigate climate change.
The peace treaty announced on Wednesday between Isael and Hamas in the Middle East could support increased freight volumes returning to the Suez Canal as political crisis in the area are resolved.
The French transportation visibility provider Shippeo today said it has raised $30 million in financial backing, saying the money will support its accelerated expansion across North America and APAC, while driving enhancements to its “Real-Time Transportation Visibility Platform” product.
The funding round was led by Woven Capital, Toyota’s growth fund, with participation from existing investors: Battery Ventures, Partech, NGP Capital, Bpifrance Digital Venture, LFX Venture Partners, Shift4Good and Yamaha Motor Ventures. With this round, Shippeo’s total funding exceeds $140 million.
Shippeo says it offers real-time shipment tracking across all transport modes, helping companies create sustainable, resilient supply chains. Its platform enables users to reduce logistics-related carbon emissions by making informed trade-offs between modes and carriers based on carbon footprint data.
"Global supply chains are facing unprecedented complexity, and real-time transport visibility is essential for building resilience” Prashant Bothra, Principal at Woven Capital, who is joining the Shippeo board, said in a release. “Shippeo’s platform empowers businesses to proactively address disruptions by transforming fragmented operations into streamlined, data-driven processes across all transport modes, offering precise tracking and predictive ETAs at scale—capabilities that would be resource-intensive to develop in-house. We are excited to support Shippeo’s journey to accelerate digitization while enhancing cost efficiency, planning accuracy, and customer experience across the supply chain.”
Donald Trump has been clear that he plans to hit the ground running after his inauguration on January 20, launching ambitious plans that could have significant repercussions for global supply chains.
As Mark Baxa, CSCMP president and CEO, says in the executive forward to the white paper, the incoming Trump Administration and a majority Republican congress are “poised to reshape trade policies, regulatory frameworks, and the very fabric of how we approach global commerce.”
The paper is written by import/export expert Thomas Cook, managing director for Blue Tiger International, a U.S.-based supply chain management consulting company that focuses on international trade. Cook is the former CEO of American River International in New York and Apex Global Logistics Supply Chain Operation in Los Angeles and has written 19 books on global trade.
In the paper, Cook, of course, takes a close look at tariff implications and new trade deals, emphasizing that Trump will seek revisions that will favor U.S. businesses and encourage manufacturing to return to the U.S. The paper, however, also looks beyond global trade to addresses topics such as Trump’s tougher stance on immigration and the possibility of mass deportations, greater support of Israel in the Middle East, proposals for increased energy production and mining, and intent to end the war in the Ukraine.
In general, Cook believes that many of the administration’s new policies will be beneficial to the overall economy. He does warn, however, that some policies will be disruptive and add risk and cost to global supply chains.
In light of those risks and possible disruptions, Cook’s paper offers 14 recommendations. Some of which include:
Create a team responsible for studying the changes Trump will introduce when he takes office;
Attend trade shows and make connections with vendors, suppliers, and service providers who can help you navigate those changes;
Consider becoming C-TPAT (Customs-Trade Partnership Against Terrorism) certified to help mitigate potential import/export issues;
Adopt a risk management mindset and shift from focusing on lowest cost to best value for your spend;
Increase collaboration with internal and external partners;
Expect warehousing costs to rise in the short term as companies look to bring in foreign-made goods ahead of tariffs;
Expect greater scrutiny from U.S. Customs and Border Patrol of origin statements for imports in recognition of attempts by some Chinese manufacturers to evade U.S. import policies;
Reduce dependency on China for sourcing; and
Consider manufacturing and/or sourcing in the United States.
Cook advises readers to expect a loosening up of regulations and a reduction in government under Trump. He warns that while some world leaders will look to work with Trump, others will take more of a defiant stance. As a result, companies should expect to see retaliatory tariffs and duties on exports.
Cook concludes by offering advice to the incoming administration, including being sensitive to the effect retaliatory tariffs can have on American exports, working on federal debt reduction, and considering promoting free trade zones. He also proposes an ambitious water works program through the Army Corps of Engineers.