Agentic AI's Impact on Sustainability and Risk Management

Artificial intelligence (AI) is reshaping the landscape of sustainability and risk management by enhancing the ability to analyze risks and calculate emissions effectively. This transformation is changing how organizations track and report risks, offering a more accurate mapping of supply chains and enabling the integration of emissions and materials information.

AI as a Data Integrator

AI serves as a critical integrator for supply chain data, uncovering hidden issues that might otherwise go unnoticed. By turning large datasets into clear insights, AI provides a real-time understanding of environmental exposure, which is vital for effective risk management. This capability allows companies to identify data gaps and focus on innovation, talent, and transformation to improve their operations.

Integrating AI into sustainability and risk management processes helps organizations optimize reverse logistics, which is a key component of sustainability efforts. This optimization is part of a broader strategy to gain a supply chain advantage by 2026, as outlined in the ASCM’s Top 10 Supply Chain Trends for 2026.

AI in Warehouse and Freight Management

The role of AI extends beyond sustainability to redefine motor freight performance through data and automation. In warehouses, AI helps leaders address labor shortages by preparing them for AI literacy and enabling intelligent transportation management systems (TMS) to evolve transportation management practices. This evolution is necessary as global freight risk increases, requiring logistics leaders to develop a new playbook for 2026.

Warehouse leaders are being encouraged to focus on agility and new strategies to meet the demands of a transforming supply chain landscape. The need for a new freight playbook stems from challenges such as the COVID-19 pandemic and the Suez Canal blockage, which exposed vulnerabilities in supply chain operations.

Transforming Supply Chain Platforms

Companies are shifting from point solutions to a platform vision, with a focus on AI to reduce repetitive tasks. This transformation aims for an end-to-end supply chain platform that emphasizes cross-functional collaboration. The recent announcement of Blue Yonder’s acquisition of One Network Enterprises is a step towards creating such a platform, as discussed by CEO Duncan Angove, who joined the company in late 2021.

Angove emphasizes pragmatic AI and change management as key components of this transformation. The goal is to create a resilient supply chain that serves as a driver of customer value, with third-party logistics providers (3PLs) acting as strategic collaborators in the 2026 AI supply chain era.

Future Trends and Talent Investment

Organizations are advised to invest in talent to align with the top trends for 2024, ensuring they have the necessary skills and capabilities to leverage AI effectively. This investment is crucial as the supply chain evolves into a more integrated and intelligent system, with a focus on resilience, specialization, and technology.

As AI continues to reshape sustainability and risk management, companies must remain agile and prepared for the changes ahead. By embracing AI and transforming their supply chains, they can uncover hidden opportunities and mitigate risks, ultimately driving sustainable growth and long-term success.