Startups are using artificial intelligence to combat supply chain disruptions

In the last two years, unexpected events have disrupted global supply chains.

COVID-19, the Russian invasion of Ukraine, a container ship that blocked the Suez Canal, and Brexit have combined to delay supplies of everything from semiconductor chips to pet food.

As a result, a growing group of startups and established logistics companies has created a multi-billion dollar industry applying the modern technology to help businesses minimize disruption.

KlearNow Corp, Fero Labs, Interos Inc, and others are using artificial intelligence (AI) and other cutting-edge tools so producers and their clients can react more rapidly to supplier holdups, get through the bureaucratic difficulty of cross-border trade, and monitor raw material availability.

Analysts reported that the market of new technology services focused on supply chains could be worth over $20 billion a year in the next five years. By 2025, over 80% of new supply chain applications will use AI and data science in many ways, according to a report by researcher Gartner.

Major logistics companies are also deploying machine learning to enhance their competitiveness. US truck fleet firm Ryder Systems Inc. uses real-time data from its truck fleet and its partners and customers to create algorithms for predicting truck availability, traffic patterns, and pricing.