Beyond Efficiency: How GenAI Unlocks Digital Economic Value in Logistics

A fully automated, cognitive supply chain driven by machine learning-powered predictive analytics, IoT inventory management, and fully automated AI data management is no longer a dream.

At the heart of this transformation lies the power of generative AI (GenAI) to tackle one of the most pressing challenges in modern logistics: managing unstructured data. It makes up 85% of data in the supply chain. And all of it is unusable by decision-makers because traditional systems struggle to mine meaningful insights from free text, voice notes, handwritten invoices, scans and attachments.

This blog explores how GenAI solutions, such as those offered by Stargo, can transform operations by transforming semi- and unstructured data structured data, readable by machines, to create digital economic value.

What is Digital Economic Value?

The concept refers to the measurable economic benefits of both financial and non-financial digital assets. This includes your enterprise's data, advanced technologies, and digital infrastructure (WMS, TMS ERP). Within freight, logistics and supply chain organizations, this value is measured through improved efficiency, decision-making, and resilience.

What is Unstructured Data?

Unstructured data cannot be easily stored in traditional column-row databases, and enterprises must rely on AI and ML to analyze it.

Unstructured data comes in all formats:

• Customs documents in various formats (PDFs)
• Handwritten delivery notes
• Social media and news posts of real-time updates on weather events
• Live traffic updates that factor in weather conditions

Drowning in Data, Thirsty for Insights

One key challenge in realizing digital economic value is the proliferation of unstructured data. According to IDC, it's increasing at an annual rate of 55-65%, and it's estimated that 85% of supply chain data is unstructured.

The problem is that unstructured data exists without a predefined data model that systems like WMS, TMS and ERPs can read. But wait, there's a bright side. Mining your enterprise's unstructured data can increase annual revenue by 20%.

Stargo GenAI Connects the Dots Between Your Unstructured Data

Every piece of this data puzzle holds valuable information, but extracting and acting on it has been a monumental task for the tech stacks of freight, logistics and supply chain to process -- until now.

Streamlined Workflows and Automation

Stargo's GenAI data automation empowers procurement, operations and sales departments.

• Route and rate accuracy improved: 40% to 100%
• Shipper Price Requests processing time reduced: 60 hours to 3.6
• Productivity enhanced: +27%
• Margin improved: +4%
• Conversion rate boosted: +8%

Ship with Confidence

Stargo's GenAI-powered route and rate optimizations include the following:

• Customer price requests: 60 hours to 3.6 seconds.
• Route optimization accuracy: 95%
• Route & Rate Error Rate: 30% to 0%

Building Trust and Security

With data breaches costing companies $3.86 million (IBM), Stargo's GenAI data automation offers end-to-end encryption, secure access controls, data anonymization techniques and compliance with global data protection regulations throughout the data lifecycle.

In addition, Stargo eliminates vulnerabilities in semi-structured data and APIs, which are common entry points for breaches, to ensure secure data management and transmission

Sustainable Growth

Stargo doesn't only transform unstructured data into a 20% increase in revenue.

• PO processing accuracy improved: 30% to 100%
• Conversion rate improved: +8%
• AI-driven route and mode planning: Reduced CO2 emissions
• Compliance accuracy: Achieved 100%

Stargo Solves the Problem of Unstructured Data

Poor data quality and the resulting flawed decision-making are costing the US economy an estimated $3.1 trillion annually due to the inability to manage and harvest unstructured data. To solve this problem in the global supply chain, we've been training our proprietary GenAI platform for four years before ChatGPT went mainstream.

Ready to Unlock Digital Economic Value?

By leveraging Stargo's GenAI-powered solutions, freight, logistics and supply chains can transform unstructured data into a strategic asset, unlocking significant digital economic value through improved efficiency, decision-making, and sustainability.

1. Boost productivity by 27%
2. Increase revenue through improved pricing and higher conversion rates
3. Embrace sustainability through optimized routing
4. Gain unprecedented BI

Contact Stargo to schedule a demo today.