Interview: "AI makes it possible to push the boundaries"

"AI makes it possible to push the boundaries"

Many processes in the transport and logistics industry are already highly optimized, and the scope for additional efficiency gains through new technologies seems limited. This is where AI can become a game changer and create a new foundation for innovation, says Dr. Matthias Marquart, Chief Digital Officer (CDO) at logistics company Andreas Schmid. The challenge is to rethink systems and structures that have grown within the company over many years. In this interview, he explains why the effort is worth it.

Handelsblatt Research Institute

Mr. Marquart, which digital technologies will have the greatest impact on the transport and logistics sector over the next five years?

Dr. Matthias Marquart

The core technology is, of course, AI. But the big trend with AI at the moment is that people are no longer dealing with the technology dogmatically, but are starting to put the business case first - the real business case and not an imaginary one. This makes implementation immediately valuable.

In order to generate added value with AI, it is sometimes necessary to rethink the systems and structures in companies that have grown over several years. If the foundations are laid properly, I believe that AI is the technology with the greatest potential for the future.

Handelsblatt Research Institute

Apart from AI, are there other digitalization trends that will be particularly relevant for your industry in the coming years?

Dr. Matthias Marquart

Yes, I hope to see further progress in the area of networking, for example. The huge potential that lies dormant here has long been propagated. But companies still think too much in terms of closed rooms. In Germany in particular, the willingness to open up - for example, sharing data through networking - is not yet as great as in the USA, meaning that the potential for cooperation remains untapped.

Handelsblatt Research Institute

How do you assess the potential of technologies that have been heavily hyped in recent years - such as the metaverse, augmented reality (AR) and blockchain?

Dr. Matthias Marquart

The metaverse is a good example of a technology where the hype had already started before there were any real use cases. Blockchain is a different story. This technology offers potential in dealing with counterfeit products, for example. It is the basis for the traceability of products in regulated markets. The problem with the technology is that it is still often too strongly associated with Bitcoin and therefore tends to be avoided.

I also see great potential in AR. Employees in warehouses can quickly identify where the goods they are looking for are located and have their hands free. However, the technology is not yet fast enough to process the information, so the potential cannot yet be fully exploited.

Handelsblatt Research Institute

AI has also been heavily hyped recently. What is the difference to the other technologies mentioned, so that the potential is greater here?

Dr. Matthias Marquart

AI is accessible to everyone. You can even use AI to find out how to use this technology yourself. In contrast to other technologies, this makes access relatively low-threshold. You don't need a big project to experience the added value.

Handelsblatt Research Institute

What added value do you expect from AI applications in the field of transportation and logistics?

Dr. Matthias Marquart

In our industry, many processes and areas are extremely optimized within the boundaries of technology. Technologies that operate within these boundaries only bring limited added value. AI, on the other hand, makes it possible to push the boundaries and thus increase the potential.

Companies can increase their efficiency and productivity. With AI, for example, more and more unstructured information can be taken into account when planning routes, which improves the results. This in turn increases customer satisfaction, as it is possible to make concrete statements about the delivery date.

Another added value that the application of AI itself offers is the topic of low code / no code. Small solutions in particular can be implemented without a great deal of programming effort. These applications are also easy to use.

Handelsblatt Research Institute

What factors are decisive for success?

Dr. Matthias Marquart

In addition to the focus on business cases, good governance is very important for the success of AI projects so that there are clear strategic guidelines for development within the company, for example. This prevents the proliferation of different applications in different areas.

Ultimately, the decisive factor for these factors and for success is the support of the management, which should be behind all decisions and changes.