The Supply Side: Technology keeps changing the supply chain

The complexity of global supply chains often results in areas of inefficiency, but technology is changing that, according to people with shipping and logistics experience who took part in the NWA Supply Chain Trends Expo held in Bentonville on April 10.

The half-day event, hosted by the University of Arkansas and Plug & Play, allowed for discussion on how innovation and technology are transforming the supply chain to include better visibility, theft prevention, waste reduction and increased efficiency.

Shelley Simpson, CEO of Lowell-based J.B. Hunt Transport Services, said technology is embedded in Hunt’s mindset across the enterprise of 33,000 employees, and that goes back at least 40 years.

“I think that’s what’s differentiated us over the last several years,” said Simpson, who was the event’s keynote speaker. “Our technology mindset helps how we think about connectivity in total and explore how we can achieve end-to-end agility. And we think technology is the future in freight and driving us toward long innovation. But you know, it wasn’t just our idea that started all of this. Mr. Hunt had the idea many, many, many years ago.”

She recalled the October day in 1984 when company co-founder J.B. Hunt flipped a switch, and the company went from an old paper system of ledgers and invoices to computers. Simpson said there was a big sigh of relief when the screens lit up, but the company kept the paper system in place for some time after just to be sure.

“We were one of the first transportation companies to let computers power our business,” Simpson said. “That was Mr. Hunt’s way of giving us a strategic advantage 40 years ago.”

360 PLATFORM
But she said the trucking industry overall has been slow to use new technology. Nine years ago, she said the process used computers, but the technology didn’t allow the many parts of the system — including people — to be more visible to all those involved. That’s when Hunt developed its Shipper 360 technology for its customer base to provide a complete view of the freight as it was moved from one place to another. The platform also listed available loads for hauling.

Simpson said Hunt allowed others to use the technology, and it became popular with smaller carriers who didn’t drive for Hunt because it gave them the ability to take larger jobs because of the traceability feature they would not otherwise have. J.B. Hunt 360 launched in 2017 as a digital freight matching platform and allowed 3.5 million drivers to access the platform. She said two other companies were innovating at the same time with similar systems. One was Uber Freight. The systems allow drivers to reduce idle hours and empty miles, allowing for better profitability.

“Our vision was to create the most efficient transportation network in North America,” Simpson said. “You see, we didn’t think about it just for ourselves. We realized technology then enabled limitless connectivity. We are managing our trucks better and helping other drivers be more successful. Since 2019, we’ve eliminated 13.5 million empty miles in our fleet. Now, we don’t have data on all of those other fleets, but we are talking about millions of miles eliminated in waste.”

FREIGHT THEFT, SENSORS
Hunt has been a victim of freight theft, a growing industry problem. Simpson said hackers infiltrated the carrier’s operating system a couple of years ago. She said the company used internal and external professionals to address the vulnerabilities.

She said it was a trying time to put alarms on all the system’s processes. She likened it to putting a separate alarm system in every room in your home with two and three levels of clearance needed for each one. Simpson said Hunt received an industry award for its effort to protect cargo and fend off the threats.

“It felt like our hair was on fire at the time, but this technology has allowed us to reduce our thefts by 90%,” she said.

Simpson said technology continues to be used in trucks and trailers that haul for Hunt. The big rigs are slowly getting some of the technology passenger cars have had for years, like lane departure notifications, Bluetooth connectivity and forward-facing cameras inside the cabs to ensure drivers keep their eyes on the road. More slowly to be integrated are backup cameras because they are expensive for big rigs, according to expo participant Anil Khanna, director of product for Daimler Truck NA.

Srikanth Bala, executive director at Cummings Inc., said trucking fleets have so many sensors that a plethora of data is being generated but given the overlap, it can be difficult to determine the single source of cause in a vehicle accident.

Overall, trucking safety has improved. The Federal Motor Carrier Safety Administration (FMCSA) reported 166,000 accidents involving large trucks in 2021, but that fell to 150,000 in 2024 because of reduced driving hours, enhanced safety equipment in trucking fleets and better awareness from drivers. Through February of this year, there were 17,000 truck crashes, according to FMCSA data.

ROBOTICS, SOFTWARE SUPPORT
The supply chain is not just trucks that move goods. It also encompasses warehouses that store and fulfill orders for users up and down the supply chain. San Francisco-based Claryo is a startup dedicated to using spatial generative artificial intelligence to enhance and optimize warehouse performance. Mohamed Amer, Claryo co-founder and CEO, spoke about the technology his firm is deploying.

Founded in 2022, Claryo focuses on improving warehouse operations by creating a digital twin of the operation and its process that can be accessed virtually to better resolve issues that arise from backlogs, accidents or sloppy processes. Amer said a virtual warehouse is created by scanning the subject and all of its operations and processes within. He said once the model is made, it can be manipulated and trained over time to solve issues like work stoppages or backlogs.

Amer said the spatial generative AI technology can be applied to outdoor building projects or entertainment venues to aid with safety planning or moving crowds. However, he said Claryo is now solely focused on optimizing warehouse space because of limited resources.

‘PURPOSEFUL TECHNOLOGY’
Michael Newcity, former chief technology officer at Fort Smith-based ArcBest, sees generative AI as a game changer for companies working in the supply chain. As he consults with businesses, he tells them AI can improve operations in the short term, but they also need to think about how it could fundamentally change their industry in five to seven years.

“We are in a time today that takes me back to 1991 when the internet began to spark excitement,” Newcity said. “In 1993, I was a programmer with ArcBest and put in charge of our company’s internet game plan. I had been working with old technologies and legacy systems and had to try and weave the nascent technology together. I haven’t felt the same way about the technology landscape until AI came on. I see it as a purposeful technology, and there have only been about 22 to 24 of those in the past 500 years.”

He said AI will raise countries’ GDP and will completely disrupt technology infrastructures, computing infrastructures and cultural infrastructures as it matures. Newcity sees it as a tool to enhance worker performance. He likens it to turning on a light switch and getting electricity. Newcity said it will be pervasive across industries as applications are created and refined to facilitate tasks that can be automated and also gain knowledge. He said the challenge for companies is to think longer term and innovate how to use the technology to help solve harder questions.

He thinks about the implications to health care in which doctors may more accurately diagnose illnesses because they have easy access to more data. He said a smarter supply chain will increase revenues because waste will be reduced or eliminated.