DIGITALISATION OF SUPPLY CHAINS

The digitalisation of supply chains has emerged as a transformative force in recent years, reshaping how companies manage their operations and interact with partners and customers.

This technological revolution is not merely about upgrading systems; it represents a fundamental shift in how supply chains function and deliver value.

By leveraging cutting-edge technologies such as artificial intelligence (AI), the Internet of Things (IoT) and advanced analytics, businesses are unlocking new levels of efficiency, transparency and agility across their entire supply chain ecosystem.

This chapter will explore the key technologies driving such change, the potential benefits they offer and the critical issues companies must navigate to successfully digitalise their supply chains.

We will look at how AI is allowing warehouses to become more responsive and efficient – crucial to enabling ‘just-in-time’ inventory management. And we will explore the technology’s use at ports and terminals, where it is increasing efficiency, reducing delays and speeding up cargo handling.

DIGITALISATION OF SUPPLY CHAINS

AS TRADE ACROSS APAC CONTINUES TO GROW, HOW CAN AI BE THE GAME CHANGER FOR LOGISTICS?

A wave of AI innovation is set to transform ports, terminals and warehouses across Asia Pacific, opening new doors to supply chain optimisation for customers.

“Optimising terminals with AI means we get better efficiency and utilisation of assets – and ultimately better customer service.”

Anders Dømmestrup, Executive Vice President of Operations in Asia Pacific (APAC), is convinced that AI will play a crucial role in the future of logistics – and a wave of innovation is about to drive a step change for APAC customers.

Since the March 2024 rollout of a new AI-powered container-decking tool at DP World’s logistics centre in Busan, South Korea, he has seen bottlenecks ease and equipment used more efficiently.

This enables more precise container decking and improves the automation of managing fluctuating cargo flows through this key hub for customers.

Through improved process automation the team can now be more responsive. And it is a vital step in future-proofing the region as volumes grow.

“As trade and logistics volumes expand, it puts pressure on traditional systems. And often those systems don’t have the logic to support that increased complexity,” he says.

Trade across APAC is continuing to evolve and grow, with AI technology increasingly being adopted in ports, terminals and warehouses.

It is proving itself by optimising the use of equipment, making time savings, providing better forecasting and improving worker safety.

Ultimately this all combines to help customers optimise their logistics, bringing greater predictability, and allowing them to forecast more accurately.

And as applications for its use increase and systems become more integrated, 2024 is proving to be a tipping point for the use of AI in APAC.

Did you invest in AI technology in 2024?

Yes – in our customer-facing technology
Yes – in our internal operations and processes
Yes – both in customer-facing technology and internal operations
No – but we plan to invest in 2025
No – we're still evaluating the potential benefits
No – we don't see it as relevant to our business at this time
Other/Don’t know

FINDING PATTERNS IN DATA

Some of the biggest benefits of the technology come from streamlining decision-making in warehouses, according to Riana Montisano, Vice President, Operations, Logistics, APAC.

For example, AI can suggest improvements to warehouse layout, highlighting fast-moving products that need to be given prime warehouse space versus slower-moving products that need to be less accessible and could be moved.

This greater efficiency means warehouses can be more responsive to customer needs, resulting in cost savings for them down the line.

“How we set up the logic determines the success of our warehousing,” Montisano says. “If the logic isn’t set up correctly, operations will suffer. More and more warehouse management systems are using system learning that can suggest improvements. So, when we have good data, we will get good advice.”

DP World is also linking this systemic learning with its labour management system, meaning that when there are good forecasts about a day – for example, Black Friday – then meaningful suggestions will be automatically made about the additional resources needed. In peak periods, this kind of intelligence is crucial to ensuring smooth-running operations and avoiding delays that ripple down the line.

How we set up the logic determines the success of our warehousing."

Riana Montisano, Vice President, Operations, Logistics, APAC

“AI is fantastic at taking infinite amounts of random data and creating patterns from it,” Dømmestrup agrees. “We can use that information to manage the flow through the system, redirect volumes within our yard and smooth out peaks and troughs.”

At ports and terminals, this could mean reducing the number of unnecessary moves, or shuffling in the yard. At Busan, machinery and equipment is also being used in a more efficient way and there is less ‘hanging hook’ time – when the crane is empty waiting for a truck to be available. This translates to quicker, more efficient handling for customers.

Think of AI like your Excel spreadsheet – it could do magic, or it could do one plus one equals two. It really depends on how you use it."

Riana Montisano, Vice President, Operations, Logistics, APAC

CONSISTENT AND RELIABLE

In the realm of logistics, greater predictability and consistency is nirvana. And another way AI is contributing towards that is through predictive maintenance. This allows potential issues to be pinpointed before the affected machinery or process goes down – boosting supply chain resilience, helping to avoid any unexpected delays and improving the efficiency of how cargo is handled.

Meanwhile, there are also sustainability considerations from this greater predictability and performance – a waiting ship releases tonnes more greenhouse gases into the atmosphere, for example. Although the delay time may seem insignificant after many weeks at sea, this process, replicated many times over, does have a significant environmental impact.

Do you think AI-powered predictive maintenance will significantly boost supply chain efficiency and reduce delays in 2025?

Yes – it will greatly improve efficiency and reduce delays
Yes – it will help, but its impact will be limited
No – I don't think it will make much of a difference
Other/don’t know

SHIFTING ATTITUDES

With the increased use of AI, attitudes towards it are evolving. Montisano notes that when AI was previously proposed as a solution, there were concerns about its cost and potential benefits. Now, customers are actively seeking automation and it has become a point of differentiation for DP World.

“As more and more people request and adopt AI, and it is increasingly integrated into systems, we will continue to refine our offering,” Montisano adds. “It’s a symphony of connected systems – that’s the trick.”

Currently, Busan is at the forefront of AI adoption among ports and terminals, but it is clear that AI in shipping and logistics is at a tipping point.

The technologies in use at the port are already being replicated and rolled out in new locations, and increase in power as they connect and communicate with each other. Throughout the supply chain, AI adoption is becoming more widespread as the benefits and potential of the technology are increasingly realised.

“Think of AI like your Excel spreadsheet – it could do magic, or it could do one plus one equals two. It really depends on how you use it,” Montisano says. “The question comes back to us – how can we, as the human, maximise AI? And part of the answer will come from experience through exposure.”

By working with partners that are actively using AI, customers will rapidly see the benefits – helping them to achieve an efficient, sustainable and resilient supply chain."

DIGITALISATION OF SUPPLY CHAINS

ARTIFICIAL INTELLIGENCE (AI) IS SHAPING THE FUTURE OF PORT OPERATIONS

Here’s how DP World’s Busan terminal is leading the way.

South Korea is a key market for DP World and through our subsidiary, Pusan Newport Company (PNC), we operate the largest terminal in the Port of Busan. Busan is the world’s second busiest transhipment port and one of the highest performing ports in Asia.

Its efficiency is significantly enhanced by PNC which is at the forefront of technology adoption for port operations, helping create more efficient, quicker and predictable processes across the port and supply chains in the region.

As yard density increases at major global hubs, ports must adapt to maintain performance. PNC’s AI-driven operations and automation are improving turnaround times, optimising container movements and reducing congestion. These innovations allow us to manage growing volumes effectively while continuing to meet customer demands in an increasingly complex logistics environment.

With frontier tech at their fingertips, our teams are finding smarter, faster ways to keep operations running smoothly – even as global trade pressures grow – and set new performance standards.

Here, Caglar Yumak, Senior Director – PNC Operations, shares how AI is transforming container handling at PNC, driving record-breaking productivity and making logistics more efficient and responsive.

By integrating the latest technology into daily operations, PNC is reinforcing its position as a key hub for trade and transportation in the Asia Pacific region.