Week Two Discussion 1 replies.

Reply to the TWO students' discussion posts.

Contributions must display original thinking and good knowledge of the subject matter, including links and references to sources used to back up your arguments.

1. Your contribution must be a Substantial Contributions.  A Substantial Contribution is a posting that adds value to the conversation by providing relevant different views or a personal relevant experience.  A point of view from an authority on the subject is also a substantial contribution.

2. Postings such as:  I agree with Joe, ……… and  repeating what Joe has already said…are not substantial contributions and do not add value to the discussion. This person in simply using someone else's contribution, not her/his own. If you agree with someone, explain why and provide new information.

3. Provide links and references of resources used. Expert sources add credibility to your statements and provide new views on the subject.

4. This is a business course. Use professional business language. Provide facts and quantitative information such as figures (numbers), statistics, charts, graphs, to justify your arguments

Eric Lin

The main takeaway from the SupplyChainBrain article is that AI can help supply chain managers improve transportation performance without waiting for a full transition to electric or alternative-fuel trucks. The article explains that AI can use telematics and engine sensor data to analyze fuel levels, engine performance, load weight, vehicle type, terrain, tire pressure, and driver behavior. By connecting those data points, AI can recommend better routes, better vehicle assignments, and better driving practices. Even a small fuel improvement matters at scale. The article estimates that AI-driven improvements could save one gallon of fuel for every 189 miles and more than 13 million gallons of fuel per year across U.S. trucking.

For supply chain managers, this means sustainability and cost reduction can work together. AI is not only an environmental tool but also an operational tool. Reducing idling, avoiding inefficient routes, matching trucks to the right loads, and improving driver training can lower transportation costs while also reducing emissions. The article also makes it clear that AI should not replace human judgment. Drivers and transportation planners still matter because they understand customer requirements, delivery constraints, safety concerns, and real-world route conditions.

A good real-company example is UPS and its ORION routing system. UPS uses ORION to optimize delivery routes based on distance, fuel, time, and route conditions. The Federal Highway Administration reported that ORION is designed to reduce UPS miles traveled by 100 million annually and save an estimated 10 million gallons of fuel. UPS’s supply chain includes package pickup from businesses and consumers, sorting through hubs, transportation through ground and air networks, and last-mile delivery to customers. AI improves that supply chain by making outbound logistics more efficient.

The implications for other uses of AI are significant. Similar tools can be used for demand forecasting, warehouse slotting, predictive maintenance, inventory positioning, carrier selection, and delivery promise accuracy. In Porter’s value chain, AI supports inbound logistics by improving freight planning, operations by improving equipment use and maintenance, outbound logistics by improving routing and delivery performance, and service by creating more reliable delivery information for customers. Porter’s model also identifies technology development and human resource management as support activities, which connect directly to AI systems and driver training programs.

Overall, AI adds value when it improves the entire supply chain instead of just one activity. The best use of AI is not simply collecting more data, but turning that data into better transportation decisions that reduce cost, improve reliability, and support sustainability.

 

References

Koev, A. (2025, May 5).  How AI can save the U.S. 13M gallons of fuel. SupplyChainBrain.

U.S. Department of Transportation, Federal Highway Administration. (n.d.).  UPS ORION route navigation system.

University of Cambridge Institute for Manufacturing. (n.d.).  Porter’s value chain.

 

Jerald Henry

The main takeaway from the article is that AI provides an opportunity for supply chain managers to realize sustainability benefits without fleet replacement. Telematics, with information regarding the state of the engine, vehicle type, load weight, terrain, tire pressure, weather and driver behavior, allows managers to determine the reasons behind the excess fuel consumption and choose more efficient routes and vehicles (Koev, 2025). Other smart benefits, such as alerts, coaching, and rewards through Artificial Intelligence, can also help lower idling, excessive speed, and inefficiency in shifting. AI is not just a predictive technology; it is a tool to transform the data generated by operations into tangible cost and environmental gains.

Everything from any supply-chain application of AI is subject to implications. The same kind of models can be used for better demand forecasting, inventory placement, predictive maintenance, warehouse workforce scheduling and monitoring supplier risks. The UPS ORION example demonstrates, however, that an algorithm is not enough to be successful. ORION evaluated delivery schedules, pick-up times and route performance. It saved the UPS between 100 million miles and 10 million gallons of fuel, and its usage cut driving by six to eight miles per route (n.d. BSR). The case also shows how vital it is to have trustworthy data, understandable recommendations, and trust among employees.

These enhancements are directly related to Porter's value chain. AI helps in outbound logistics and operations by optimizing load assignments and delivery routes. It enables HRM with specific driver training and incentives and technology development and firm infrastructure with sensors, analytics and governance. An AI system, for instance, could be developed by a regional airline that transports groceries to help match refrigerated loads with the capacity of the trucks, steer clear of long routes, and educate drivers on how to prevent idling. This would lead to reduced transportation expenses, increased asset utilization, reduced emissions and improved overall customer value.

 

References

BSR. (n.d.).  Looking under the hood: ORION technology adoption at UPS.  https://www.bsr.org/en/case-studies/center-for-technology-and-sustainability-orion-technology-ups

Koev, A. (2025, May 5 ).  How AI can save the U.S. 13M gallons of fuel. SupplyChainBrain.  https://www.supplychainbrain.com/articles/41697-how-ai-can-save-the-us-13m-gallons-of-fuel