**San Francisco**: Flexport has launched 20 AI products, including Flexport Intelligence and Control Tower, promising to transform logistics efficiency. Founder Ryan Petersen discusses strategic planning, AI’s role, and adapting to trade regulations, while emphasising logistics as a growth driver rather than a cost.
Flexport has announced a significant expansion in its capabilities, unveiling 20 AI-driven products and updates in a recent launch, which has garnered attention within the logistics industry. Company founder Ryan Petersen discussed the strategic reasoning behind this extensive product release, the implications of artificial intelligence in global logistics, and the current landscape of international trade regulations in an interview with FreightWaves.
The decision to present such a comprehensive suite of products at once was intentional, inspired by Airbnb CEO Brian Chesky. Petersen mentioned, “There’s nothing like the power of a deadline to make people work really hard. … It did create a moment for us to drop a bit of a bomb into the supply chain world.” By consolidating numerous updates into a single major announcement, Petersen aimed to generate momentum within his technology team, enhance collaboration with marketing, and create significant industry buzz.
Among the notable introductions is Flexport Intelligence, which serves as an AI-driven reporting tool that enables customers to generate insights using natural language queries. Petersen elaborated, “You just type, ask questions and we generate reports – lists, graphs, charts.” The platform operates in the background to build SQL queries, facilitating users to create dashboards that update in real-time.
Also highlighted is the Flexport Control Tower, which permits businesses to utilise Flexport’s technology even while engaging other freight forwarders. Petersen pointed out that by permitting customers to leverage multiple freight forwarding services, the Control Tower addresses a crucial industry challenge: “Your data is less valuable if it’s only on one-third of your shipments. Having the best-quality data and reports that don’t cover everything comes up short.” This centralized logistics management system aims to enhance both visibility and efficiency across various freight providers.
Furthermore, Petersen shared insights on how Flexport seeks to redefine the value of supply chains. He emphasised the necessity for businesses to view logistics not just as a cost but as a potential growth driver. The recent acquisition of Shopify Logistics has enhanced Flexport’s fulfilment services, allowing customers to offer two-day shipping at reduced costs, likely improving conversion rates and customer satisfaction.
The conversation also turned to the complexities of trade regulations, particularly in light of the increased tariffs introduced during the Trump administration. Petersen acknowledged the hurdles these tariffs present but also noted that they underline the importance of Flexport’s services: “Tariffs are massively impactful to our mission. We want to make global trade easy. … We are anti-tariff as a company. We’re proud to say we want there to be no barriers for our customers to do global trade. But the more barriers that are thrown up, the more important our work becomes.”
Flexport has built a reputation for its agility, employing an “OODA loop” framework (Observe, Orient, Decide, Act) to swiftly respond to policy changes. The company’s trade advisory division assists shippers with navigating duties, reclassifying products, and leveraging refund programs, thus ensuring that clients reclaim billions of dollars in unclaimed duties each year.
Petersen expressed confidence in AI’s potential within the logistics sector, asserting that all team members should leverage AI tools frequently to enhance productivity. “Every single member of your team should be using AI at least 10 to 20 times a day,” he advised, encouraging the exploration of platforms such as ChatGPT and Gemini.
For Flexport, AI represents more than just a trend; it is seen as a competitive edge. With its extensive scale as a freight forwarder, Flexport benefits from the data and distribution necessary to deploy AI-driven implementations effectively across the supply chain. However, Petersen remains cautious about competition from emerging AI-native companies, stating, “We are paranoid [about competitors]. … There’s a lot of AI talent in the world that does not work at Flexport.”
Looking to the future, Flexport plans to further integrate its international freight and fulfilment operations and is examining AI-driven inventory financing options to offer improved financing rates to merchants storing goods in its fulfilment centres. Petersen highlighted the company’s commitment to maintaining a high pace of innovation, with further product releases anticipated within six months, echoing advice borrowed from Chesky.
Despite facing regulatory uncertainty, Petersen and his team are determined to continue adapting and innovating in response to the challenges presented by the current global trade climate.
Source: Noah Wire Services
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