Competitive Advantage In Logistics Isn't AI

InnovationCompetitive Advantage In Logistics Isn't AIByPaul A Mohabir,Forbes Councils Member.for Forbes Technology CouncilCOUNCIL POSTExpertise from Forbes Councils members, operated under license. Opinions expressed are those of the author. | Membership (fee-based)May 22, 2026, 07:15am EDTPaul A. Mohabir is head of IT at Transervice Logistics. gettyFor nearly two decades, logistics strategy centered on efficiency—optimizing routes, reducing costs and maximizing utilization. That model worked in a more predictable world but doesn't hold up as effectively today. The competitive advantage in modern logistics is now decision velocity. It's the ability to sense change, make decisions and execute in near-real time.In my experience leading IT within the logistics industry, I've seen organizations invest heavily in AI and automation but struggle to generate meaningful operational returns. The challenge is the operating model surrounding the technology.AI has evolved far beyond forecasting. Modern logistics platforms can now dynamically reroute shipments, predict disruptions, optimize labor allocation and adjust operational workflows in real time. However, many organizations aren't structured to move at the speed these technologies enable.What slows them down is organizational latency—the delay between when data becomes available, when insight is generated and when action is taken.Historically, supply chain latency referred to transportation delays. Today, the greater risk is internal. When organizations take hours (or days) to respond to operational signals, they lose the advantage that AI's designed to create.This is why logistics strategy is shifting through three distinct phases:1. Efficiency-First: Focused on cost reduction and process optimization.2. Resilience-First: Built around redundancy, continuity and risk mitigation.3. Agility-First: Defined by the speed of decision making and execution.AI supports all three phases, but its greates...