AI and logistics: How is generative AI revolutionizing today's and tomorrow's supply chain?

Logistics, a true pillar of the global economy, is currently undergoing an unprecedented revolution. Faced with the explosion of e-commerce, the complexity of supply chains, and ever-increasing customer expectations, traditional methods of warehouse management and logistics flow management are reaching their limits.

How, in this context, can we move from reactive logistics to a proactive, agile and resilient supply chain? The answer lies in two letters: AI, and more specifically, generative AI.

Until now, Artificial Intelligence (AI) was primarily synonymous with predictive analytics for route optimization or demand forecasting. The arrival of Gen AI (Generative AI) is changing the game, adding the ability to create and model ultra-complex scenarios and, even more fascinatingly, to interact in natural language (or more commonly known as "prompt").

This article takes you to the heart of this transformation. We'll explore how conversational AI and generative models, going far beyond simple chatbots, are redefining warehouse management, returns logistics, and risk management. Get ready to discover the warehouse of the future and the tangible benefits that await you.

Use Case 2026: Using generative AI to model ultra-complex demand scenarios

One of the promises of generative AI lies in its ability to simulate and generate highly complex scenarios , far exceeding the capabilities of traditional statistical models. It's no longer just about anticipating demand based on sales history, but about generating "possible logistical worlds."

Why is this so critical? Because the performance of a supply chain is intrinsically linked to the accuracy of its forecasts. Poor demand forecasting leads either to overstocking (high holding costs) or stockouts (lost sales and customer dissatisfaction).
Specifically, according to a recent study by McKinsey & Company, generative AI could generate between $60 and $110 billion in value annually in the global supply chain by 2030. And by 2026, more than 30% of mid-sized warehouses plan to adopt an AI-powered conversational assistant.

It's worth noting that the logistics sector already uses AI for optimization. In fact, it's estimated that it can reduce logistics costs by 20% and CO₂ emissions by 10 to 20% (source: Capgemini, Accenture, 2024). But Gen AI elevates this capability to a strategic level.

Generative AI for forecasting and "what-if" scenarios

Generative AI makes it possible to integrate and correlate massive and heterogeneous data sources:

• Internal data : Sales history, seasonal trends, stock turnover data, actual capacity of delivery and receiving docks , palletization constraints, performance warehouse automation robots
• External data: Geopolitical events, social media trends, weather forecasts, commodity price fluctuations.

By leveraging this data, generative AI is able to build a true digital twin of your supply chain, where every variable is dynamic.

Concrete example : Faced with an unexpected surge in demand (for example, following a media event), instead of a simple alert about the risk of disruption, generative AI instantly proposes several comprehensive action plans:

1. Scenario A (cost priority): 48-hour delivery delay for 15% of orders, transport by road carrier via a route optimized by the TMS software , reorganization of picking and packing tasks in the warehouse to prioritize SKU A (ABC method) using dynamic slotting.
2. Scenario B (customer priority): Use of a more expensive air carrier for 5% of critical orders, launch of an accelerated co-packing wave, request for safety stock on a secondary logistics platform, automatic adjustment of the inventory management plan.

Each scenario is generated in "what-if" mode and includes its projected impact on margins, delivery times, and carbon emissions. It's a true co-pilot for the logistics manager's decision-making process.

The end of stock shortages thanks to generative AI?

Integrating Gen AI into inventory management or WMS software enables highly accurate synchronization of supply and demand. By generating more reliable forecasts, it reduces the risk of overstocking or stockouts.

According to Bpifrance, SMEs that adopt AI see their productivity increase by an average of 18% over two years . One agri-food SME even managed to maintain its activity during the COVID shortages thanks to its predictive algorithms.

Checklist: Adopting Generative AI for Planning

• Data audit: Ensure the quality and availability of historical sales, transportation, and warehouse performance data.
• Define the KPIs: Identify the key indicators (service rate, cost per kilometer, picking time) on which AI should maximize its impact.
• WMS/TMS Integration : Choose a WMS solution or TMS software that is compatible with the integration of external AI models or has advanced embedded WMS features.
• Team training: Prepare teams to interact with the AI ​​co-pilot and interpret the generated scenarios for decision-making.

When your WMS/TMS understands natural language: Controlling the warehouse by voice and prompts

While advances in warehouse automation and mechanization have transformed physical operations, generative AI is now tackling the control interface and human decision-making. The dream of seamless and intuitive interaction with complex systems like WMS ( Warehouse Management System ) and TMS (Transport Management System) is becoming a reality thanks to generative Natural Language Processing (NLP).

The "conversational" WMS: the on-demand warehouse

Imagine a warehouse manager no longer typing complex queries, but asking a simple question in everyday language:

"What is the impact on the order preparation plan if I prioritize cross-docking for the next 4 hours?"

AI, integrated into warehouse management , doesn't just search for information. It generates a complete and actionable response by leveraging data from:

• Inventory management: Where are the relevant SKUs (Stock Keeping Units) stored? What is the current stock turnover?
• Logistics flow management: What are the potential bottlenecks at the delivery dock? Which order pickers are available?
• Planning: The response incorporates real-time optimization of slotting and may even suggest enhanced quality control if the risk of error is high.

Conversational WMS, whether a SaaS or on-premise picking time and reducing errors.

Controlling the Transport Management System (TMS) by voice

The same principle applies to transport with TMS software. The complexity of last-mile , the management of unforeseen events (traffic, weather, peak activity periods) and the need for real-time traceability require rapid decision-making.

A transport operator might request:

"I have a truck that's going to be 30 minutes late. Generate the best alternative routing plan that minimizes the impact on customer satisfaction and recalculate the remaining delivery windows."

The AI-based TMS software not only provides the new roadmap, but also automatically generates customer notifications and administrative documents (shipping manifests, delivery notices), thus reducing the administrative burden.

Checklist: Integrating AI into WMS/TMS

• Selecting a WMS/TMS platform: Favor a WMS platform and/or TMS software that focuses on openness and the integration of AI (NLP).
• Definition of business “Prompts”: Identify repetitive, high-value queries and tasks that could be automated by a simple voice or text command.
• Data governance: The system must guarantee information security and prevent AI from hallucinating (generating false but credible information).
• Usage test: Deploy a pilot phase to measure the time savings on specific tasks such as inventory management or processing complex returns logistics.

Generative AI for predictive risk analysis: Anticipating disruptions even before the first early warning signs

One of the biggest vulnerabilities in the supply chain is its susceptibility to disruptions: health crises, natural disasters, geopolitical tensions, and supplier failures. Traditionally, the approach was reactive. Today, generative AI and predictive analytics enable a shift to a proactive and resilient strategy.

The power of heterogeneous information

Generative AI is not limited to analyzing your internal data. It is capable of ingesting and contextualizing information streams from the outside to identify correlations undetectable to humans.

• Geopolitical and financial monitoring: AI analyzes suppliers' financial reports, press articles, industry reports, and social media trends. This allows it to anticipate potential supply disruptions months in advance, well before the first delivery delay.
• Dynamic risk mapping: Through this aggregation, AI generates risk scenarios. It can model the impact of a flood in a production area or a trade conflict on the availability of certain SKUs, including the management of hazardous materials .
• Mitigation plan generation: When faced with an identified risk, AI does more than just raise the alarm. It generates comprehensive action plans for warehouse management and transportation management software, for example, by suggesting alternative supply sources or alternative transport routes.

A major player in the automotive industry has thus combined data science with AI to transform supplier risk management into a strategic lever, obtaining quantifiable results on operational performance.

Optimized returns management and reverse logistics

The challenge of reverse logistics (or reverse logistics) lies in its cost and complexity, especially with the rise of e-commerce. Here, generative AI can deliver significant value:

1. Forecasting returns: By analyzing past reasons, fashion trends and customer reviews, generative AI can predict not only how many products will be returned, but also which products, and when .
2. Optimized integration: Upon notification of a return, AI instantly determines the best path for the item: immediate restocking, repair, repackaging (such as co-packing), or destruction. This plan is immediately integrated into the WMS software's logistics flow.
3. Customer communication: AI can create personalized messages for the customer, ensuring a smooth and transparent returns management experience, thus transforming a logistical constraint into a competitive advantage.

Checklist: Securing the supply chain with generative AI

• Supply chain mapping: Identify and digitize all suppliers.
• Dynamic monitoring: Setting up external data feeds (weather, news, finance) to feed the AI ​​model.
• Define risk thresholds: Determine the indicators that will trigger the generation of emergency plans (Ex: a supplier reaches a risk score of Z).
• Automatic emergency plan: Ensure that the generated plans are directly injectable into the execution systems (WMS software and TMS software) for immediate response.

Choosing your WMS solution in the age of AI: Going beyond the specifications

The integration of generative AI is transforming the approach to investing in logistics tools. The days when WMS specifications were limited to basic WMS functionalities (receiving, storage, picking) are over. Companies must now assess a solution's ability to become a strategic partner in innovation.

The evaluation criteria for WMS platforms

The choice of a WMS solution should be future-oriented, with an emphasis on the following criteria:

• AI interfacing capability : Does the system allow seamless integration of external AI models or does it have native generative AI modules?
• Data quality and utilization: AI is data-hungry. The WMS platform must excel at collecting, cleaning, structuring, and making data available in real time. Without reliable data, generative AI risks becoming hallucinatory.
• Embedded business expertise: AI models must be specifically trained on the vocabulary and constraints of logistics ( ABC method , cross-docking, palletizing, management of hazardous materials, etc.).
• Transparency and explainability: Users need to understand why the AI ​​generates a certain scenario. Explainable AI (XAI) builds trust and enables adoption.

The price of a WMS should no longer be evaluated solely on the acquisition cost, but on the ROI generated by increased productivity, reduced errors and lower stockouts .

Towards complete decision automation

The warehouse of the future will be managed by "autonomous agents" based on generative AI . These agents will not simply make recommendations; they will trigger actions without human intervention (for example, automatic replenishment of stock or adjustment of the slotting plan according to activity peaks ).

The role of humans is evolving, shifting from execution to supervision and strategic decision-making , with the support of AI assistants. The WMS is becoming the intelligent conductor of the supply chain.

Limitations, risks and conditions for success of generative AI in logistics

Generative AI is not a magic bullet. It comes with prerequisites and risks.

• Data quality and reliability : No matter how powerful an AI model, it can only deliver reliable predictions, analyses, or plans based on clean, up-to-date, well-structured, and complete data. Erroneous, missing, or poorly formatted data will skew results, potentially leading to disastrous decisions.
• Maintenance and human oversight : Internal expertise is needed to oversee the AI, validate results, calibrate models, and clean data. It's not about "automating everything" without control. Humans retain a central role, particularly for final decision-making, exception handling, compliance, and security.
• Buy-in and training : Introducing an AI-driven WMS requires training, team buy-in, and change management support. Without these, the tool risks remaining underutilized.

Generative AI, the catalyst for Supply Chain 5.0

Generative AI is much more than a passing technological trend; it's a paradigm shift for the entire logistics industry. It's transforming how we manage logistics flow and planning, both in the warehouse and in the transportation sector. By equipping WMS and TMS software with the ability to understand, model, and create in natural language, it unlocks previously unattainable levels of efficiency.

The benefits are numerous and tangible: reduced operating costs, fewer stockouts, and better management of the entire supply chain. The warehouse of the future is a place where humans and machines collaborate, with AI as a strategic co-pilot .

So, are you ready to make your supply chain a decisive competitive advantage?

Act now and contact us : those who adopt AI as pioneers will be the logistics leaders of tomorrow.

FAQ: Everything you need to know about generative AI in logistics

What is generative AI (Gen AI) and how is it different from traditional AI in logistics?

Traditional AI in logistics (Machine Learning, predictive analytics) analyzes existing data to make forecasts (e.g., anticipating demand, optimizing routes). Generative AI (Gen AI) goes further by creating new content . In supply chain management, this translates into the ability to generate complex scenarios (e.g., alternative transportation plans, modeling the impact of a crisis), interpret natural language to interact with WMS software, or create personalized customer messages. It is a creator of solutions, not just an analyst.

Will generative AI replace traditional WMS?

No. Generative AI complements and enhances existing WMS solutions. It makes them smarter, more accessible, and more responsive, but the core functionality (inventory, location, flow, and transportation management) remains within the WMS software. AI is an "intelligent overlay," not a replacement.

How does generative AI concretely help with stock management and inventory management?

Gen AI, integrated into a WMS solution, improves inventory management in two key ways:

1. Demand forecasting: It uses heterogeneous data (including external data such as social trends) to predict demand more accurately, optimizing inventory turnover and reducing the risk of stockouts or overstocking.
2. Dynamic slotting: dynamic slotting plan based on incoming orders (including activity peaks), optimizing picking and palletizing time.

Is my current WMS software compatible with generative AI?

It depends on the nature of your WMS solution. Modern, scalable solutions, including SaaS WMS and SaaS logistics solutions, are generally designed to be open (via APIs) and easily integrate generative or conversational AI modules. Legacy on-premises systems may require significant upgrades or the deployment of a different WMS platform. Assessing AI compatibility should be a key element of the WMS specifications for any future project.

What is "prompt" control for TMS software?

Prompt-driven (or natural language instruction-driven) operation is the application of conversational AI to a TMS (Transport Management System) software. Instead of navigating complex menus, the user formulates a simple query , such as "Find the most economical carrier for tomorrow's deliveries while minimizing CO₂ emissions," for example.