Major Shift Underway in Logistics KPI Reporting

Gartner predicts a significant shift in logistics key performance indicator (KPI) reporting by 2028, with 25 percent powered by generative AI (GenAI). 

According to the company’s recent survey of 127 supply chain leaders, half of them intend to integrate GenAI in the next year with an additional 14% already in the implementation stage.

“GenAI presents an opportunity for logistics leaders to uncover additional insights from logistics data and drive operational efficiency,” said Carly West, Senior Director Analyst at Gartner. “KPI reporting is a challenging area for many organizations, and it is ripe for exploration with GenAI to uncover valuable findings from logistics data at a greater speed.”

While KPI reporting serves as the benchmark for tracking operational performance, many companies struggle to gain insights due to inefficiencies in data interpretation and analysis. 

“The ability to gather and consolidate different data sources will remove obstacles that logistics leaders currently run into,” added West. “Moreover, the ability to understand where challenges are occurring in real-time will enable faster corrective action to improve logistics performance, in turn driving operational and financial results.”

The growth of GenAI Reporting

GenAI's natural language processing capabilities offer a solution, streamlining multiple data sources while also enabling prompts to present and explain results, conduct root cause analysis, and analyze supplier data to evaluate performance

Before its GenAI implementation, however, logistics leaders must evaluate organizational maturity, culture, and data capabilities. 

“As with any new technology, evaluating your organization’s readiness prior to beginning implementation is key,” said Jose Reyes, Senior Director Analyst at Gartner. “Reviewing your existing technology stack and establishing the right KPIs before exploring how GenAI can help is important for maximizing value.”