How to Evaluate GenAI Providers for Freight, Logistics, and Supply Chain

Generative AI (GenAI) is set to drive the next wave of productivity gains across industries. According to a recent AWS/MIT survey, up to 80% of Chief Data Officers are eager to understand how GenAI can impact their operations and business models, and the freight, logistics and supply chain sectors are no exception.

However, a measured approach is crucial to getting the best out of GenAI while shielding your company (and your reputation) from potential risks.

• Rushed implementations or poor network integration can hobble GenAI's effectiveness
• The data quality of your enterprise can directly impact its performance
• 100% automation and reduced human oversight pose potential transparency and ethical concerns

This blog will help you navigate the selection process, ensuring you find a partner that aligns with your needs and goals.

Find the Right Fit: Five Steps to Evaluating GenAI Automation Providers

Choosing a provider that aligns with your industry-specific needs and unique operational goals will make a world of difference in enhancing your operations and driving efficiency, profitability, and growth.

Here are five steps to keep in mind when choosing a provider.

1. Understand Your Business Needs

Before looking externally to a Genai provider, understanding your business needs and objectives is crucial.

Assess Current Processes

Begin by analyzing your current workflows. Identify areas that are ripe for automation, such as:

• Freight forwarders spend 30 minutes per shipment manually entering data from paper documents. This time-consuming process is error-prone, leading to typos and delays that frustrate customers.
• 3PLs struggle with high call volumes during peak seasons. Reps spend 10 minutes per inquiry searching for shipment updates across multiple systems, resulting in long wait times and overworked staff.
• Contract logistics providers' reliance on manual spreadsheets prevents them from seeing real-time inventory levels. Weekly stock counts lead to discrepancies, which cause stockouts and overstocked warehouses.

Pinpoint the pain points and inefficiencies in these processes.

• How can we streamline inventory tracking to improve accuracy and efficiency across multiple warehouses?
• What solutions could reduce the time spent gathering shipping information from various systems?
• How do we minimize discrepancies caused by manual stock counting and spreadsheet updates to enhance order fulfillment and financial reporting?

Set Clear Objectives

With a clear picture of your current state, define specific goals for implementing GenAI automation. These might include:

• Reducing manual data entry
• Generating accurate quotes faster
• Improving customer response times

Prioritizing these objectives based on their potential impact on your business will help you focus your evaluation of potential GenAI providers.

2. Evaluate Technological Capabilities

Don't settle for short-term solutions. When selecting a GenAI partner, prioritize their technological capabilities to make sure they align with your present and future business demands.

GenAI Expertise

Look for providers with experience applying GenAI to automation tasks relevant to freight, logistics, and supply chain operations. Key areas of expertise should include:

• Natural Language Processing (NLP) for handling diverse communication and documentation
• Large Language Model (LLM) text generation for automated reporting and correspondence
• Machine learning capabilities for predictive analytics and optimization

Feel free to ask for case studies that showcase successful GenAI implementations in similar environments.

Scalability and Integration

Does the provider offer scalable solutions that can adapt to increasing data volumes and expanding operational scope? Also, don't forget to evaluate compatibility with your existing systems. Seamless integration capabilities are crucial for minimizing disruption.

For instance, no matter the size of your operations or how complex your tech stack is, Stargo's suite of GenAI solutions can be implemented within four weeks. Here's our secret:

• System-Agnostic: Stargo integrates as a layer above existing ERP, TMS and WMS tech stacks to streamline integration
• Versatile Connectivity: Stargo supports various API and EDI communication protocols, ensuring compatibility with modern and legacy systems

3. Industry Expertise and Compliance

Industry-specific knowledge is non-negotiable when choosing a GenAI provider for the highly regulated freight, logistics, and supply chain sectors.

Look out for the following:

Domain Specificity

Verify that the GenAI platform understands your sector's unique challenges and regulations. The solution should be able to "speak" your language and comprehend and anticipate industry-specific needs.

For example, Stargo Large Language Model (SLLM) is the world's first LLM designed exclusively for freight, logistics, and supply chain organizations. Trained on over 1 million data samples from over 35,000 free-text, real-world emails, SLLM has a deep, contextual understanding and recognizes nuanced, sector-specific terminology and processes for key freight, logistics and supply chain operations.

Regulatory Compliance

When dealing with sensitive shipping information or cross-border logistics data, choosing a provider that prioritizes compliance with relevant regulations and data security standards is absolutely essential.

At Stargo, we uphold the highest data protection and regulatory compliance standards. Our ISO 27001 certification proves our commitment to safeguarding data confidentiality, integrity, and availability. We also adhere to rigorous, industry-leading GDPR data security standards.

4. Evaluate the Provider's Track Record and Success

A provider's past performance can be a strong indicator of future success.

Client Base

Analyze the diversity and size of their client base. A provider with experience serving a range of freight, logistics, and supply chain companies will likely have a broader perspective on industry challenges and solutions.

Success Metrics and KPIs

A reputable provider should be able to clearly articulate the return on investment (ROI) their solutions have delivered for clients. Ask for quantifiable results such as:

• Percentage reduction in processing times
• Improvement in accuracy rates
• Measurable cost savings or revenue increases
• Improved customer conversion rates
• Trackable ROI

Please contact the Stargo team to receive our customer success stories and results achieved for multi-billion dollar, 1.5 billion dollar and half-billion dollar freight, logistics and supply chain companies.

5. Analyze Support and Training

Even the most advanced GenAI solution requires proper implementation and ongoing support to deliver optimal results.

Implementation and Ongoing Support

Evaluate the level of support offered during the initial implementation phase. Does the provider provide dedicated project management teams to ensure a smooth rollout?

Assess their commitment to ongoing support, including:

• Regular maintenance and updates
• Timely troubleshooting and issue resolution
• Continuous optimization of the GenAI solution

Training and Knowledge Transfer

Are the provider's training programs on point for your team's needs? Look for providers that offer training resources that include:

• Hands-on workshops
• Online learning modules
• Regular webinars and updates on new features

At Stargo, ongoing support and continuous learning are key to unlocking GenAI's full potential in your freight, logistics, and supply chain operations. Our seasoned global support team is committed to ensuring your success during implementation and throughout your GenAI journey.

Contact the Stargo team today to learn more about our global support service and training programs to help you maximize the value of your GenAI investment.

Ready to Explore GenAI Solutions?

As the freight, logistics, and supply chains continue to digitalize, GenAI is becoming the invisible hand of optimization. By carefully evaluating potential providers across these critical areas---business alignment, technological capabilities, industry expertise, track record, and support---you can find a partner to help you unlock GenAI's full potential in your operations.

We invite you to explore our industry-leading GenAI solutions. Contact us today to schedule a consultation or request a demo.