A recent report, The Market Momentum Index: AI Readiness in Transportation and Logistics Back-Office Operations from Hyperscience, found that respondents are extremely optimistic about the benefits of adopting AI and automation technologies. The report also reveals that while AI adoption in this sector is on the rise, many companies are still in the early stages of fully embracing AI systems in their back-office operations.
Key takeaways include:
- 98% of respondents whose organizations use AI in back office operations say that they see it as useful, important, or vital to their business.
- 70% of survey respondents say they are willing or very willing to invest in an AI-optimized system.
- 34% of respondents are motivated and planning to pilot AI solutions but have not yet fully deployed them.
- 45% of organizations are using AI, with 13% in the operational stage and 32% in the advanced or transformational stage.
“Transportation and logistics are the backbone of global commerce and touch every aspect of modern life, including food supplies, healthcare, manufacturing, and retail,” said Andrew Joiner, CEO, Hyperscience, in a statement. “The study conducted by Deep Analysis confirms that there is significant value to be realized from the implementation of AI and automation in the supply chain, especially its ability to overcome bottlenecks, accelerate operations, and deliver superior customer experiences.
The critical role of back-office operations
Back-office operations form the administrative core of supply chain processes in T&L, encompassing tasks such as order processing, inventory management, billing, compliance documentation, and communications with vendors and carriers. These tasks are critical in maintaining smooth operations and rely heavily on documents such as invoices, bills of lading, shipment tracking forms, and compliance records.
Many organizations still rely on manual or semi-automated processes to manage these documents, leaving room for errors, delays, and inefficiencies. In fact:
- 82% of respondents reported that manual document processing remains a significant hurdle for the T&L sector.
- 53% said document compatibility issues, which include different document formats, inconsistent quality, or the presence of handwritten information causes issues with document scanning systems.
- 52% cited frequent equipment malfunctions can lead to lost time, document re-scanning and manual data entry, significantly delaying downstream operations like customs clearance, delivery scheduling and payment processing.
- 40% stated that despite widespread digital transformation efforts, a significant portion of organizations still rely on paper-based systems.
- 49% said that the absence of standardized document formats is a pervasive issue in the industry, identifying it as a significant challenge that leads to a ripple effect throughout the supply chain.
Value of AI and automation in back office operations
In the back-office functions of T&L companies, AI is seen as a transformative force that can significantly enhance efficiency and reduce operational costs. 98% of respondents whose organizations use AI see it as useful, important, or vital.
Additionally, according to the data:
- 66% of survey respondents said that AI is a big contributor to how they work.
- 39% highlighted that AI improves data quality by ensuring consistency, standardization, and accuracy.
- 31% say that AI can analyze large volumes of complex data, such as real-time traffic patterns, weather conditions, shipment tracking, and historical trends to optimize supply chain decisions.
- 28% believe that in the back office AI can reduce errors especially with the automation of repetitive tasks such as data entry, invoice processing, and document management.
- 25% cited that it increases their flexibility and improves their ability to manage peaks and troughs.
Opportunities for growth and innovation
The transition to digital documentation, automation of data entry, and adoption of advanced tools and AI technologies are all critical components of transforming back-office processes in the T&L sector.
According to the survey:
- 43% of organizations in the transportation and logistics sector have predominantly transitioned to digital documentation.
- Of these, 89% of respondents noted moderate to significant improvements in operational processes by shifting to digital formats.
This data highlights that in the back office, this shift can have a transformative effect, particularly when it comes to document management, invoicing, compliance tracking, and communication across departments and with external stakeholders.
