AI

How AI and Change Management Are Revolutionizing Ecommerce Supply Chains

03 October 2024

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Zaker Adham

A recent study led by a professor from Penn State University reveals how shippers and third-party logistics (3PL) providers are embracing AI and change management strategies to meet the growing demands of ecommerce customers. As online shoppers expect faster and more transparent deliveries, companies are turning to AI to enhance service levels, optimize logistics, and improve customer satisfaction.

The study found that 40% of shippers and 37% of 3PLs expect a significant return on investment (ROI) from AI-driven service improvements. This indicates a shared understanding among supply chain stakeholders that investing in technology and change management will pay off in the long run, particularly as the competition in ecommerce logistics intensifies.

AI and Change Management: Critical Components for Success

Dr. C. John Langley, professor of supply chain and information systems at Penn State University’s Smeal College of Business, spearheaded the 2025 Third-Party Logistics Study in collaboration with NTT Data and Penske Logistics. According to Dr. Langley, while 3PL providers and shippers maintain strong partnerships, they face challenges like economic fluctuations, geopolitical instability, and evolving market demands. The key to overcoming these obstacles lies in leveraging AI and implementing effective change management strategies.

AI is pivotal for automating data analysis, identifying logistical patterns, solving complex problems, and reducing human error in repetitive tasks. When integrated correctly, AI enhances shipping efficiency, accuracy, and the overall customer experience. However, deploying AI requires strong change management to ensure smooth transitions and keep pace with the rising expectations of online buyers.

AI’s Role in Improving Supply Chain Operations

The study outlines several areas where AI can significantly impact ecommerce supply chains:

  • Transportation and Route Optimization: AI analyzes traffic patterns, weather conditions, and other external factors to optimize delivery routes, reducing fuel consumption, improving delivery times, and lowering costs. It also helps predict rate fluctuations, ensuring better pricing for shipping lanes.
  • Order Management: AI tracks inventory in real time, predicts stock needs, and automates reordering, reducing holding costs and enhancing cash flow. Automated systems ensure that products are available when needed, minimizing delays and manual errors.
  • Customer Service: AI's ability to forecast demand and provide real-time visibility into inventory and delivery statuses improves customer service by ensuring accurate delivery times and minimizing stockouts.
  • Supplier Management: AI can identify key suppliers and predict risks such as financial instability, geopolitical issues, or natural disasters, allowing businesses to safeguard their supply chains.

Ramu Pannala, vice president of supply chain technology at Penske, notes that AI can optimize stock levels by drawing on various data sources, including point-of-sale data. This helps automate processes like backorders and reorders, improving accuracy and reducing delays.

Shippers and 3PLs Ramping Up AI Projects

AI is no longer just a buzzword—it’s becoming a core component of supply chain strategies for both shippers and 3PLs. The study found:

  • 40% of shippers and 37% of 3PLs expect high ROI from AI projects, particularly in enhancing service levels.
  • 33% of ecommerce shippers are considering AI initiatives for supply chain planning, while 19% of 3PLs are already planning to implement these technologies.
  • 27% of shippers are interested in AI for transportation and route optimization, with 22% of 3PLs already moving forward with similar projects.
  • 61% of shippers and 73% of 3PLs agree that change management is crucial to staying competitive in a fast-evolving marketplace.

Conclusion: The Future of AI in Ecommerce Supply Chains

AI’s role in ecommerce supply chains is set to expand as shippers and 3PLs continue to explore new ways to optimize logistics, reduce costs, and meet customer expectations. While AI technology can process vast amounts of data and provide insights, human expertise remains essential in interpreting and implementing these solutions effectively. The next few years will see even more widespread adoption of AI technologies, especially as companies strive to keep pace with the ever-growing demands of online consumers.