Democratizing AI on the Factory Floor

Announced at Cloud Next ’26, the initiative has already seen the company roll out more than 800 AI agents across manufacturing, logistics, and supply chain functions—marking a significant step toward what it describes as the future of AI-enabled industrial operations.

A key focus of the strategy is putting AI tools directly into the hands of frontline workers.

“AI is now integral to the way work gets done at GE Appliances,” said Mandar Deo, Vice President of Digital Technology & Chief Digital Officer. “With hundreds of AI agents already in use across manufacturing and operations, our Digital Technology team is accelerating this AI transformation with Gemini Enterprise to build the secure, connected data foundations necessary to lead the industry in the AI era.”

The company is leveraging both the Gemini Enterprise Agent Platform and app—enabling technical teams to build and govern AI agents, while allowing non-technical employees to create low-code or no-code solutions to solve operational challenges.

AI-Powered “Brilliant Factory” Drives Real-Time Manufacturing Decisions

GE Appliances has embedded Gemini Enterprise into its Brilliant Factory platform, which tracks production performance, part genealogy, and workforce activity across plants.

This integration is shifting operations from reactive problem-solving to real-time, data-driven decision-making.

Key manufacturing gains include:

• Faster shift analysis: AI agents process shift data in minutes instead of hours, accelerating root-cause identification
• Natural language data access: Workers can interact with production data conversationally, reducing reliance on data specialists
• Real-time optimization: Continuous monitoring of line yields and equipment health helps reduce downtime and improve performance

Supply Chain and Logistics: From Manual to AI-Assisted Operations

Beyond the factory floor, AI is delivering measurable impact across logistics and supply chain operations.

GE Appliances developed a Quality Insights AI tool to analyze customer feedback and improve product design and logistics processes.

“We used Gemini Enterprise to create and deploy Quality Insights Assistant to help our teams identify visual patterns faster from customer feedback,” said Marcia Brey, Vice President of Logistics. “At our scale, that means we can catch defects sooner and improve product quality, ultimately delivering a better consumer experience.”

The company reports that shifting from manual reviews to AI-assisted analysis has uncovered millions of dollars in improvement opportunities across logistics and internal operations.

Managing Complex Global Supply Networks with AI Agents

GE Appliances’ supply chain spans more than 700 service parts suppliers and includes the shipment of approximately 27 million parts annually, with availability maintained for at least seven years after production ends.

To manage this complexity, the company introduced a Supplier Collaboration Agent in 2025 to automate communication with more than 600 suppliers.

The result:

• 25% reduction in backorders
• Improved efficiency in order status management
• Greater focus on strategic, high-value activities

A Model for the Agentic Enterprise

Matt Renner, President and Chief Revenue Officer at Google Cloud, highlighted the broader implications of the deployment:

“GE Appliances serves as a model for the agentic enterprise, demonstrating how Gemini Enterprise can be deployed at scale to solve complex, real-world industrial challenges. By building AI agents into their manufacturing processes, they are combining their deep industry experience with modern AI to make faster, better decisions.”

Scaling AI Across Industrial Operations

With more than a century of manufacturing experience, GE Appliances is now embedding AI across its workforce and operations—reshaping how products are built, how supply chains are managed, and how decisions are made at scale.

By combining industrial expertise with AI-driven automation, the company is positioning itself at the forefront of a new era in manufacturing and supply chain transformation—where data, speed, and intelligence define competitive advantage.

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AI-Driven Supply Chains: From Insight to Action

Announced at Cloud Next ’26, the partnership centers on leveraging Google Cloud’s Gemini Enterprise Agent Platform to help PepsiCo move “from insight to action more quickly and consistently at scale,” while strengthening its digital and multi-cloud foundations.

At the core of the collaboration is a push to modernize PepsiCo’s supply chain and go-to-market capabilities using AI.

“As market dynamics and customer expectations evolve, PepsiCo is re-examining how we bring products to market and how we make decisions at scale,” said Athina Kanioura, CEO, Latin America Foods, and Chief Strategy & Transformation Officer, PepsiCo.

She added: “Google Cloud’s deep expertise in AI and engineering strengthens our best-in-class supply chain and go-to-market capabilities — giving us unprecedented speed and precision to model scenarios that were previously impossible to run. The result is faster decisions, improved frontline experiences, and a step change in how we design and operate our business.”

The partnership enables PepsiCo to apply AI to complex challenges such as supply chain management and in-store execution—key priorities for global food and beverage operators navigating volatility and shifting demand.

Building a Resilient, AI-Powered Value Chain

PepsiCo will use Gemini Enterprise Agent Platform across three core areas:

• Scaling Global Intelligence

The company is expanding its data and analytics capabilities through an AI-driven digital platform built on Google Cloud’s global infrastructure, creating a more resilient foundation for operations and digital transformation.

• Optimizing the End-to-End Value Chain

AI capabilities will support faster, more informed decision-making—from long-term strategic planning to real-time execution in stores—helping drive productivity and cost efficiency.

• Empowering the Workforce

AI-enabled workflows will reduce manual effort and accelerate insight generation, allowing employees to focus on higher-value tasks while improving overall operational performance.

Multi-Cloud Strategy Strengthens Global Operations

A key component of the collaboration is PepsiCo’s continued investment in a flexible, multi-cloud environment.

By migrating to Google Cloud’s secure global infrastructure, the company aims to build new digital capabilities that support its worldwide supply chain network and enable it to “leverage the best available AI technology” across use cases.

This approach is designed to enhance agility across markets while ensuring consistent performance at scale.

AI at the Core of Food and Beverage Transformation

Thomas Kurian, CEO of Google Cloud, emphasized the role of AI in advancing supply chain resilience:

“PepsiCo has a long history of using data to understand consumer demand. With Gemini Enterprise, it is putting AI into the hands of its global workforce and empowering them with the tools to build a more resilient supply chain.”

Linking AI Strategy to Sustainability and Growth

The collaboration also aligns with PepsiCo’s broader transformation strategy, including its pep+ (PepsiCo Positive) framework, which places sustainability at the center of business growth.

By embedding AI across supply chain and operational workflows, PepsiCo is aiming to improve efficiency, reduce costs, and strengthen resilience—critical priorities for the global food and beverage sector.

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DELIVERING SMARTER TECHNOLOGY FOR ALL

“Manufacturers don’t need more artificial intelligence (AI) pilots. They need AI that runs at scale in production,” states Jonathan Wu, Chief Technology Officer of Smart Manufacturing at Lenovo.

At Lenovo – a global powerhouse determined to deliver smarter technology for all – this initiative has already been accomplished across its own international manufacturing operations, resulting in significant improvements in lead time, cost, and productivity. Specifically, at the company’s largest site in North America, lead time was reduced by 85 percent, logistics costs by 42 percent, and productivity was boosted by 58 percent through the deployment of AI and generative AI-enabled solutions.

“That experience is what we bring to our customers,” Wu states.

With approximately 94 percent of manufacturers increasing AI investments in 2026 alone, Lenovo is enabling the seamless transition from pilot to production with solutions that are already delivering measurable gains in cost, quality, and operational performance, shifting the priority from experimentation to execution.

DELIVERING MEASURABLE IMPROVEMENTS

It is evident that AI is no longer just a future ambition for manufacturers; rather, it has become an operational necessity, with many feeling the pressure to improve efficiency, resilience, and responsiveness in response to continuous supply chain volatility and rising operational complexity.

In partnership with NVIDIA at Hannover Messe 2026, Lenovo is actively demonstrating how manufacturers have the ability to close said gap by implementing AI solutions that have previously been proven at scale across the company’s own global operations.

Through the application of AI across production environments allowing for real-time detection, faster root cause analysis, and continuous improvement, Lenovo is working to strengthen supply chain resilience with immediate, multi-tier visibility.

Such solutions can be directly observed on the factory floor through the company’s Multi Purpose Robots, which create adaptive automation across workflows, including line-side delivery, picking, kitting, and material movement between production stages. This enables better production stability, increased equipment effectiveness, and better alignment between operations and changing demands.

PROVEN END-TO-END EXECUTION

Whilst many AI initiatives fall flat ahead of production, Lenovo ensures that these tools are designed to operate in live, complex environments by delivering solutions that are already running at scale in its own varied manufacturing operations.

The company’s proven experience enables faster deployment, reduced execution risk, and measurable business impact from the very start.

Specifically, Lenovo’s Hybrid AI Advantage merges infrastructure, data, models, and services into a single, integrated ecosystem that spans edge, cloud, and on-premises. Crucially, it is designed for real-world conditions, encouraging manufacturers to move from pilot to production with greater speed, confidence, and control.

Ultimately, as a global technology leader, the company is pioneering the use of its groundbreaking AI technology to enhance its own operations, allowing Lenovo to help other enterprises transform and embrace smarter AI for all.

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Global partners align on growth, resilience, and innovation strategy

At its 2026 Global Partners Conference in Shenzhen, TCL set out a clear message for global partners: localised, consumer-first operations are central to long-term growth and resilience.

Held under the theme “Pioneering for Greatness,” the event brought together nearly 500 partners and stakeholders from 49 markets to review two years of sustained growth and outline the company’s future roadmap. Against a backdrop of global market shifts and industry transformation, TCL emphasised its strategy to “work with global partners to lead with brand value, improve efficiencies in its global operations, and build a smarter, and more connected ecosystem for consumers worldwide.”

Building local value chains to drive responsiveness and resilience

A central pillar of TCL’s growth model is its focus on localised supply chains. The company highlighted how its expansion strategy prioritises building local value chains and investing in regional resources to better respond to market-specific demand.

Today, TCL operates:

• 25 R&D centres
• 7 joint laboratories
• 21 manufacturing bases worldwide

This integrated global network enables faster response to local consumer needs while supporting regional economic and industrial development. The approach reflects a broader shift in global supply chains toward localisation to mitigate risk and improve agility.

From manufacturing to distribution: a connected global network

TCL’s vertically integrated supply chain is designed to enhance both efficiency and scalability. As of 2025, the company operates:

• Approximately 80,000 retail stores worldwide
• A service network spanning 7,000 locations

This infrastructure allows TCL to reach more consumers globally while maintaining operational consistency and responsiveness across markets.

Leadership perspective: shared growth and long-term resilience

TCL’s leadership underscored the importance of collaboration and long-term value creation in navigating global supply chain complexity.

“TCL is fully invested in our shared success,” said Du Juan, CEO of TCL Industries. “Our theme for this year’s GPC—’Pioneering for Greatness’—is a confident statement on our outlook for the future. Underpinning this optimism are three simple truths: that creating real value empowers us to outlast any market cycle; that integrity is the foundation for enduring partnerships; and that shared growth is what will ultimately lead us forward.”

Product innovation aligned with supply chain strategy

TCL’s supply chain strategy is closely tied to its investment in innovation. Over the past three years, the company has significantly increased R&D spending to develop technologies focused on display quality, AI, and energy performance.

Key innovations showcased at the conference included:

• The X11L SQD-Mini LED TV
• TCL FreshIN 3.0 Ultra air conditioner
• TCL TwinMag Prime Fresh Series refrigerator
• TCL AI SuperDrum® Wash & Dry Tower
• TCL RayNeo AR Glasses
• TCL Photovoltaic Technology solutions

The company also reinforced its leadership in Mini LED technology, noting it was the first to introduce and mass-produce the technology.

Strategic partnerships strengthen global supply chains

TCL continues to expand its ecosystem through strategic partnerships. In March 2026, TCL Electronics Holdings Limited and Sony Corporation announced a joint venture to develop home entertainment products, aimed at delivering innovation and operational excellence.

The company also leverages global partnerships beyond manufacturing, including major sports collaborations with organisations such as FIBA and the NFL, as well as becoming an official Worldwide Olympic and Paralympic Partner in 2025.

Strong category performance underpins global expansion

TCL reported strong performance across key product categories:

• World’s No. 2 TV brand
• World’s No. 2 exporter of air conditioners, with 20 million units shipped
• 16th consecutive year as the world’s largest exporter of refrigerators

The company is also expanding into emerging segments, including AR smart glasses—where it ranked No. 1 globally in shipments in Q3 2025—and photovoltaic products, which saw revenue grow by 63.6% in 2025.

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New Yard Operating System integrates automation, AI and electrification for multi-site yard operations

The system reflects a broader shift in logistics toward integrating physical yard operations with digital intelligence, enabling more consistent and measurable performance in one of the supply chain’s most operationally complex areas.

The enhanced platform, YMX OS, is positioned to help enterprise shippers improve visibility, efficiency and sustainability across multi-site supply chain networks.

End-to-end yard orchestration combines data, AI and automation

The expanded YMX OS brings together multiple technologies into a unified operating model. Core components include an embedded Yard Management System (YMS) for real-time visibility and control, alongside automated data capture tools such as self-service kiosks, computer vision-enabled location systems and mobile applications.

At the centre of the platform is an “Autonomous Operational Twin,” a digital twin decision engine powered by artificial intelligence and predictive analytics. This enables continuous optimisation of yard operations, including layout design, fleet sizing, labour planning, traffic flow and electrification strategies, while quantifying both operational and financial impacts.

YMX is also integrating electric vehicle (EV) operations into the system, aligning workflows, charging infrastructure and energy management to improve utilisation and reduce costs.

From labour-driven operations to system-led performance models

A key element of the launch is a shift in commercial structure. YMX is introducing a performance-aligned pricing model tied to execution and system efficiency, moving away from traditional labour- or equipment-based pricing approaches that often limit visibility into true cost drivers.

Matt Yearling, Chief Executive Officer of YMX Logistics said:

“What’s been missing in yard operations isn’t more tools. It’s a system that connects execution to measurable outcomes. The Yard Operating System standardizes how yards are run, allowing enterprise shippers to continuously improve transportation and warehousing performance, resulting in major financial, sustainability, and safety gains across their networks.”

Erin Mitchell, Chief Operating Officer of YMX Logistics, added:

“Most yard operations today are managed as labor-driven functions rather than controlled systems. By standardizing execution, instrumenting the yard with digital intelligence, and aligning operations to performance outcomes, we’re giving enterprise shippers the most predictable and measurable way to operate one of the most challenging parts of their network.”

Early deployments show efficiency, cost and sustainability gains

The system has already been implemented in large-scale environments. At a major distribution centre operated by a top-five U.S. grocery retailer, YMX reports reduced yard truck fleet requirements, alongside improvements in throughput and safety performance.

Fuel consumption, emissions and operating costs also declined, with the programme expanded to nine additional facilities within six months.

Industry observers highlight the strategic importance of this shift

Bart De Muynck, founder of Better Supply Chains, said:

“In an era defined by global volatility, yard operations can no longer remain a dark spot in the supply chain. What YMX has built is a new operating model for the yard. By converging physical execution with digital intelligence, their teams are enabling autonomous orchestration and continuous optimization, giving enterprise shippers predictable performance and genuine resilience across their distribution networks.”

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BUILDING A DIGITAL FOUNDATION  

DENSO Corporation (DENSO) has entered a new phase of collaboration with Oracle Corporation (Oracle), establishing a strategic partnership focused on modernising its global supply chain systems. The initiative centres around deploying a unified, cloud-based core system built on Oracle Fusion Cloud Applications and enhanced with artificial intelligence (AI) capabilities.  

The move reflects growing pressure within the automotive sector, where supply chains are becoming increasingly complex due to evolving vehicle technologies, the diversification of product lines, and rising geopolitical risks. In response, DENSO is aiming to standardise and strengthen its operations through digital transformation. 

By integrating supply chain processes with existing finance and HR systems already running on Oracle platforms, the company plans to create a single, scalable global system. This approach is expected to enhance visibility across procurement, manufacturing, and logistics whilst improving operational consistency worldwide. 

AI-DRIVEN TRANSFORMATION  

At the core of the partnership is the use of AI to streamline and optimise supply chain activities. The new system will centralise data-spanning planning, procurement, production, delivery, and accounting, enabling real-time visibility across DENSO’s global operations.  

With this integrated data foundation, AI will automate routine processes and generate recommendations, reducing manual workloads and allowing employees to focus on higher-value tasks. In parallel, advanced analytics will support faster and more informed decision-making by identifying risks and running simulations across multiple scenarios. 

“This initiative goes beyond simple efficiency improvements; it represents a fundamental modernisation of our core systems to transform the quality and speed of decision-making on a global scale. By leveraging Oracle Fusion Applications to significantly enhance data accuracy and timeliness, and by embedding AI into day-to-day operations, we will implement a supply chain that is resilient to change,” he adds.  

EXPANDING A LONG-STANDING COLLABORATION  

The latest agreement builds on an existing relationship between the two companies, which has already seen the deployment of cloud-based solutions in areas such as finance, indirect procurement, and human resources. The expansion into supply chain management marks a significant broadening of scope. 

As part of the initiative, DENSO and Oracle will establish an AI Centre of Excellence to consolidate expertise and promote the use of advanced AI agents across operations. This hub will play a key role in scaling AI adoption and ensuring alignment across the programme. 

“DENSO’s continued growth and the increased speed and complexity of its supply chain operations required a new AI-centric and integrated approach,” says Steve Miranda, executive vice president of Applications Development, Oracle.  

“With Oracle Fusion Applications, DENSO can adopt an AI-powered system of outcomes that can work across the business to automate end-to-end workflows, boost supply chain performance, and drive efficient global growth.”   

GLOBAL ROLLOUT AND LONG-TERM IMPACT 

A pilot deployment at overseas locations is planned within approximately two years, followed by a phased global rollout. Once complete, the system is expected to deliver improved efficiency, reduced costs, and enhanced resilience across DENSO’s supply chain network.  

Ultimately, the partnership aims to position DENSO with a more robust and adaptable supply chain, capable of responding quickly to changing market conditions whilst supporting long-term innovation and sustainability goals. 

The post DENSO and Oracle Partnership Modernises Core Supply Chains appeared first on Supply Chain Outlook.

Major expansion of regional warehouse footprint

The new Taoyuan International Logistics Center (TILC) in Taiwan is designed to help businesses improve warehouse productivity, strengthen supply chain resilience and accelerate access to UPS’s wider global freight and logistics network.

Spanning more than 81,000 square metres, the facility more than doubles UPS’s warehouse footprint in Taiwan and represents nearly US$100 million in investment.

Located five kilometres from Taoyuan International Airport, Taiwan’s largest cargo airport, the site connects customers directly into UPS’s network of 22 weekly flights operating through the airport.

The facility has been built to support customers across sectors including semiconductors, medical technology and other high-value industries.

Lauren Zhao, president of UPS Asia Pacific Supply Chain Solutions and Freight Forwarding, said: “Businesses across Asia Pacific are pursuing many opportunities to strengthen every part of their supply chain.”

She added: “The TILC, which was created to meet evolving customer needs, boosts productivity, efficiency, agility, and gives customers flexibility for future challenges.”

Automation at the centre of warehouse strategy

A key feature of the new logistics centre is its deployment of autonomous mobile robots (AMRs), which UPS is using to automate warehouse tasks including:

• Pick and pack operations
• Inventory management
• Shelf loading and movement

The robots enable significant efficiency gains across warehouse workflows.

• Customer orders can be processed and packed onto shelves around 40% faster than current speeds
• Customers can double the number of products stored in equivalent shelving space
• Order-picking errors are reduced to near zero

Zhao said: “Overall, using the AMRs can lead to a doubling in productivity, and a significant improvement to the customer experience.”

She added: “The faster we can process, pack and pick our customers’ inventory, the faster they can respond to orders from their customers, increasing satisfaction.”

Supporting semiconductor supply chains

The facility is already being used by Applied Materials as its Asia continental distribution centre.

Erix Yu, Group Vice President and President of Applied Materials Taiwan, said: “Applied Materials is strengthening the speed and agility of our supply chain as AI drives global semiconductor demand to new heights.”

He added: “The UPS TILC provides a scalable, flexible and automation-ready logistics foundation that supports Applied’s regional growth initiatives.”

Strategic logistics investment in Asia Pacific

The launch forms part of UPS’s broader investment strategy across Asia Pacific as companies seek more agile, technology-enabled logistics models to support cross-border trade and demand volatility.

The facility strengthens its ability to provide integrated logistics, digital and supply chain services to businesses across Taiwan, with delivery access to more than 200 countries and territories.

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Strategic collaboration targets more resilient, data-driven supply chains

The collaboration centres on the development of intelligent warehouse environments, where data captured from physical operations is used to optimise performance across the supply chain.

At the core of the partnership is the use of digital twin technology, combining data from on-site cameras and sensors with artificial intelligence to create virtual models of machines, systems and entire warehouses.

These digital twins allow operators to simulate and test changes to warehouse layouts and processes, enabling data-driven decision-making before implementation.

As part of the agreement, KION will become the first company in Europe to deploy Siemens’ Digital Twin Composer software, which allows multiple processes to be simulated in parallel and in real time.

Real-time simulation unlocks efficiency and operational flexibility

The Digital Twin Composer acts as a modular toolkit for AI-powered simulation, enabling companies to create and optimise digital representations of logistics operations across their lifecycle.

The platform supports high-fidelity 3D simulations using both virtual and real-time physical data, allowing companies to continuously improve warehouse performance once facilities are operational.

Data collaboration accelerates industrial AI deployment

A key element of the partnership is a data-sharing agreement, with KION contributing operational data and domain expertise from complex warehouse environments.

This collaboration is designed to accelerate the deployment of AI-enabled solutions across logistics and supply chain operations, supporting Siemens’ broader ambition to scale industrial AI through an Industrial Foundation Model.

Integration across warehouse lifecycle supports supply chain optimisation

KION will integrate Siemens’ technology into its existing software environment, which already manages the planning, implementation and operation of logistics solutions.

Using Siemens’ PLM software Teamcenter and digital twin capabilities, KION enables companies to simulate warehouse operations early, optimise processes and test changes virtually before deployment.

Leadership perspective: from physical hubs to digital supply chain control centres

Cedrik Neike, Member of the Managing Board at Siemens AG and CEO of Siemens Digital Industries, said:

“Supply chains today have to be efficient, but above all resilient.”

“Together with KION, we are using a comprehensive digital twin and industrial AI to turn the warehouse from a physical hub into the digital nerve center of the supply chain – laying the foundation for greater resilience and flexibility.”

Rob Smith, CEO of KION Group AG, said:

“As The Supply Chain Solutions Company, KION orchestrates end-to-end solutions for its customers within warehouses and factories, and eventually across the entire supply chain.”

“With Siemens as a strategic partner, KION is strengthening its ability to combine the digital and physical worlds at scale. This takes our digital twin-based solutions to a new level.”

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Reducing lifecycle greenhouse gas emissions

The company has signed a new five-year agreement through 2030 with IAG Cargo, alongside a previous 2025 renewal, that will enable approximately 240 million liters of SAF to be uplifted at London Heathrow Airport for DHL Express cargo transported on British Airways flights.

The agreement is expected to reduce lifecycle greenhouse gas emissions by approximately 640,000 tonnes of CO₂e, with the potential for total reductions to exceed 1 million tonnes of CO₂e when combined with a broader framework agreement between DHL Global Forwarding and IAG Cargo.

The expanded partnership reflects growing pressure on logistics providers to decarbonize freight networks while maintaining reliable international transport capacity.

Showing what is possible with SAF

The SAF volumes will provide the company with Scope 3 emissions reductions from approximately 40 million litres of neat SAF per year, covering nearly all of the fuel currently attributed to transporting DHL Express cargo within IAG Cargo’s network.

The fuel used under the agreement is ISCC-certified, derived from feedstocks including used cooking oil, and achieves approximately 90% lifecycle greenhouse gas emissions reductions compared with conventional fossil jet fuel.

“This agreement shows what is possible when two committed SAF users in the industry pool their efforts,” said Travis Cobb, EVP Global Network Operations & Aviation at DHL Express. “It significantly expands our ability to reduce lifecycle greenhouse gas emissions on a major trade lane and demonstrates how cross-sector partnerships can contribute towards concrete lifecycle greenhouse gas emissions reductions.”

Cross-division sustainability strategy

The deal forms part of a broader cross-divisional strategy to secure diversified access to sustainable fuels and support increasing customer demand for lower-emissions logistics services.

The additional framework agreement between DHL Global Forwarding and IAG Cargo is intended to strengthen that strategy by supporting long-term fuel availability across the wider DHL Group and helping scale emissions-reduction services across business units.

For air cargo operators and shippers, SAF remains one of the most immediate pathways to cutting aviation emissions, although supply constraints and cost remain major barriers. DHL noted that SAF is currently three to four times more expensive than fossil jet fuel, while still accounting for only a small share of total airline fuel consumption.

Essential partnerships for net-zero logistics

Camilo Garcia Cervera, Chief Sales and Marketing Officer at IAG Cargo, said partnerships will be essential to accelerating broader adoption.

“DHL and IAG Cargo have a longstanding relationship, and it’s great to see our partnership continue to grow as we work together to deliver more sustainable air freight solutions while we keep global trade moving,” he said. “Partnerships like these will be critical to scaling the use of sustainable aviation fuel.”

The agreements support DHL’s wider target of increasing the share of sustainable aviation fuel in its air transport operations to 30% by 2030, part of the company’s long-term goal to achieve net-zero emissions logistics by 2050.

The post DHL Deepens SAF Strategy with IAG Cargo to Cut More Than 1 Million Tonnes of Emissions appeared first on Supply Chain Outlook.

The rebrand

The new identity was introduced publicly at MODEX 2026 in Atlanta, where Pyramid showcased its warehouse execution, controls and fulfilment technologies as part of Duravant’s broader industrial automation portfolio.

Pyramid provides Warehouse Execution System (WES) and Warehouse Control System (WCS) software, controls and integration services, alongside products including Pyramid Director, NEXUS, Compass CORS and Lightning Pick pick-to-light technologies. The company’s systems are designed to support material flow and order fulfilment across omnichannel, ecommerce and advanced warehouse environments.

Delivering warehouse solutions

“We are excited to announce the rebrand of our company to Pyramid,” said Gary Cash, Senior Vice President and General Manager of Pyramid. “Our trusted product brands have been delivering warehouse solutions for over 30 years, and now, under the Pyramid name, we add a powerful software and controls layer to Duravant’s industrial automation portfolio—bringing even more comprehensive capabilities alongside the conveyor, parcel, packaging and fulfilment technologies customers rely on to keep operations moving.”

The new name for Matthews Automation Solutions

The rebrand follows Duravant’s acquisition of Matthews Automation Solutions, completed on December 31, 2025, and reflects the company’s effort to integrate warehouse software and controls more closely into its wider automation offering.

Pyramid will continue implementing systems through its existing model, leveraging expertise in controls, warehouse execution software and light-directed fulfilment systems, while working with partners, integrators and other Duravant operating companies.

Warehouse operators are increasingly looking for integrated automation platforms that combine software orchestration, robotics and picking technologies to improve throughput and flexibility, particularly as ecommerce and omnichannel fulfilment continue to drive operational complexity.

The benefits of unified organization

Within that strategy, Pyramid plans to extend the reach of its pick-to-light technologies into a wider range of warehouse applications.

“Within the unified organization, we are excited to extend the reach of our signature pick-to-light software and systems to more applications by drawing on Duravant’s broader industrial and material handling automation expertise—helping more organizations boost speed, accuracy, and scale,” said Mike McManus, General Manager of Pyramid’s Lightning Pick operations.

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Designed for cold chain warehouse automation

The company’s upgraded Mobile Shuttle robot is engineered to run 24/7 in temperatures as low as -15°F (-26°C), allowing deployment in subzero warehouse environments across sectors such as food, retail and temperature-controlled logistics.

LG CNS said the Mobile Shuttle is intended to support logistics operators managing increasingly complex cold storage environments, where automation can improve throughput while reducing worker exposure to harsh conditions.

The robot can:

• Operate at speeds of up to 4.9 ft/s (1.5 m/s)
• Carry loads of up to 3,307 lbs (1,500 kg)
• Run with dozens or hundreds of units simultaneously within warehouse racks

The system is built around a four-way shuttle architecture, enabling movement up, down, left, right, forward and backward, this reduces routing constraints and creates more flexible warehouse flows compared with conventional two-way shuttle systems.

Focus on storage density and throughput

A key differentiator for the Mobile Shuttle is its high-density storage design, which LG CNS said delivers more than 30% higher storage efficiency compared with traditional systems limited to forward and backward movement.

The design is intended to help warehouse operators maximise storage utilisation as logistics providers face mounting pressure to increase throughput without expanding warehouse footprints.

AI and optimisation tools support warehouse management

LG CNS has also added an AI agent to the Mobile Shuttle platform to improve usability and operational responsiveness, and warehouse staff can directly control robots using natural language commands through a chatbot in situations such as urgent shipments.

If technical issues occur, the AI agent can identify the cause and recommend response measures to operators, and it has integrated mathematical optimisation technology to improve routing and warehouse performance by:

• Analysing robot routes and operating status in real time
• Minimising bottlenecks
• Optimising inbound and outbound planning
• Automatically assigning tasks to shuttle robots

Expansion in North American logistics market

LG CNS said the Mobile Shuttle can transport both general cargo and cylindrical items such as automotive batteries, and has secured UL certification, meeting US safety standards for electrical, electronic and mechanical products.

The company is already deploying the technology in North America, including a recent contract to install a Mobile Shuttle-based automation system at Paris Baguette USA’s manufacturing facility in Texas, where it will support subzero sorting and transportation of baking ingredients.

Junho Lee, Senior Vice President of Smart Logistics & City Business Division at LG CNS, said: “Our Mobile Shuttle operates effectively in both refrigerated and frozen environments, helping us expand the scope of logistics automation.”

He added: “We will continue to drive our global business expansion by leveraging our distinctive strengths in high-density, high-efficiency logistics operations.”

LG CNS unveiled the upgraded Mobile Shuttle at MODEX 2026 in Atlanta, North America’s largest logistics trade show.

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What is RFID technology?

The move gives shippers greater real-time visibility into package movements and forms part of UPS’s wider “Network of the Future” strategy, with the company investing more than $100 million to date in developing and implementing the technology.

RFID sensing is now active in all UPS package delivery vehicles in the U.S., across the company’s delivery facilities nationwide, and on every package shipped through more than 5,500 The UPS Store locations, including return shipments.

“We’re lighting up customers’ supply chains in real time with RFID, enabling precise tracking, faster insights, a smarter network and smarter packages,” said Matt Guffey, Executive Vice President and Chief Commercial and Strategy Officer.

“This is the most significant visibility advancement in the past decade at UPS and in our industry.”

From scanning to sensing

The rollout represents a shift from traditional barcode scanning to automated sensing, replacing manual scan-based tracking with RFID-enabled package monitoring throughout the shipping process.

“With RFID embedded into labels, on our vehicles and in our loading bays, customers benefit from clear visibility during the entire shipping process – from pick up to delivery, with no manual scanning required,” Guffey added.

“The result is commerce that is smarter and predictable.”

RFID sensing automatically confirms when packages are picked up and in UPS possession, while continuously tracking shipments as they move through the network.

According to UPS, “no other carrier can offer this assurance across its U.S. network.”

Designed to improve resilience and response times

The richer shipment data generated by RFID allows the company to respond more quickly when disruptions occur, including weather events and other unexpected operational issues.

It also gives customers enhanced transparency into shipment location and progress without requiring additional investment in technology or internal systems.

UPS said it manages the complexity of the RFID infrastructure behind the scenes, allowing customers to access improved visibility without becoming technology specialists themselves.

Supporting millions of shipments daily

RFID sensing technology is already being used daily across UPS’s operations, supporting millions of package movements throughout the network.

The company said the initiative reinforces its long-term focus on technology-led logistics innovation and premium customer service.

UPS generated $88.7 billion in revenue in 2025 and operates in more than 200 countries and territories worldwide.

The post “Unprecedented Package Visibility” UPS RFID Sensing Logistics Tech Explained  appeared first on Supply Chain Outlook.

Issue 09

Rail

MTR Corporation : On the Right Track to Shape Urban Transport

MTR Corporation’s new CEO, Jeny Yeung, outlines her vision for next-generation trains that enhance metropolitan mobility. By emphasising innovation and customer service, the company aims to advance ambitious railway projects that drive economic growth in Australian cities.

By

Eddie Clinton

Rachel Carr

24 April, 2026

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Supply Chain Services

London Fire Brigade : Meeting Tomorrow’s Fire Service Needs Today

Now more than ever, London Fire Brigade must go above and beyond to protect the UK capital, which is witnessing fire risk levels like never before. Jonathan Smith, Commissioner, updates us on the Brigade’s plan of action to uphold the city’s safety.

By

Cameron Lawrence

Lucy Pilgrim

14 April, 2026

Read More

Warehousing & Storage

TGW Logistics : The Future of Innovation in Automation

We revisit TGW Logistics’ journey with Stipe Galic, Vice President of Business Development, who discusses how a transformative technological strategy positions companies to elevate performance in an ever-evolving industry landscape.

By

Poppi Burke

Rachel Carr

14 April, 2026

Read More

Supply Chain Spotlights

Ports Management Association of Eastern and Southern Africa : Spotlight

We showcase the Ports Management Association of Eastern and Southern Africa, which acts as a crucial framework for exchanging information and best practices across the industry.

By

Deane Anderton

Lucy Pilgrim

14 April, 2026

Read More

Post & Parcels

Zipline Rwanda : Autonomous Delivery Across Rwanda

Rwanda is to become the first country in the world with nationwide autonomous delivery, including Africa’s first urban drone delivery network. We learn about this historic expansion agreement with Pierre Kayitana, Country Director of Zipline Rwanda.

By

Jack Salter

15 April, 2026

Read More

Expert Eye

Kallikor : Turning Supplier Trust into a Strategic Advantage

Will Lovatt, Chief Revenue Officer at Kallikor, discusses how building trust across the supply chain is a strategic advantage and can be the centre of operational strength for supply chain organisations.

By

Will Lovatt

20 April, 2026

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Procurement & Sourcing

Inverto : Redefining Resilient Procurement

In light of Inverto’s Procurement Trends 2026 report, Matthew Rose, UK Managing Director, shares how businesses are strengthening resilience, unlocking innovation, and harnessing artificial intelligence to protect margins and drive growth.

By

Lily Sawyer

15 April, 2026

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Post & Parcels

Quadient : Smarter Returns, Stronger Networks

We sit down with Quadient’s Lee Graham, Sales Director – Parcel Pending Locker Solutions, and Zach Teasdale, Head of Strategic Partnerships – Parcel Locker Open Networks, to discuss how smart locker networks are streamlining returns, improving security, and unlocking new commercial opportunities.

By

Lily Sawyer

15 April, 2026

Read More

Agriculture & Agribusiness

A Delicate Daisy Chain of Events

As summer quickly approaches, thoughts turn to all things floral, but where do these beautiful blooms come from, and what processes allow them to make their way into wedding bouquets, retail displays, and traditional parades? We take a closer look at their journey.

By

Rachel Carr

15 April, 2026

Read More

The post Supply Chain Outlook Issue 9 appeared first on Supply Chain Outlook.

TURNING SUPPLIER TRUST INTO A STRATEGIC ADVANTAGE

The most impactful supply chain problems rarely originate in operations. They are generated upstream, in commercial decisions made without a shared view of operational consequences.

Supplier relationships shape service levels, cost-to-serve, and supply chain resilience. Yet many organisations still treat suppliers as separate parties to be managed, rather than strategic partners to be aligned. That gap then shows up in the following way: a change looks good on paper, then performance gradually deteriorates once it hits the network.

Hidden costs appear, and inefficiencies ripple through the operation. Teams then spend weeks dealing with downstream consequences that no one intended. It’s a commonplace pitfall that is entirely avoidable, and there’s a great business case to motivate change.

WHEN COMMERCIAL WINS CREATE OPERATIONAL PAIN

A frequent trigger for increased risk and operational costs is a negotiation that prioritises a narrow set of key performance indicators (KPIs). Unit price, margin, and rebate structures can be persuasive in isolation, but they do not capture the operational reality across the combined system.

Even when detailed definitions of range, pack sizes, and buying multiples are covered in the initial negotiations, it’s still common for supply chain logistics to ‘bleed’ value.

Often, the issue is that small incremental changes can drive large ripple effects later on. The pack size of a product is a prime example. A discount for buying cases of 48 might suit a supplier’s production rhythm and improve margin reporting, but it can block shelf space and push days of supply beyond an ideal inventory strategy, with additional handling work also thrown into the mix.

The same dynamic applies to minimum order quantities and where inventory is held. Retailers, for example, routinely balance fast and slow movers within the same supplier relationship, with very different implications for vehicle fill, replenishment frequency, and the best location for stock.

Some of the biggest operational shocks can even arise internally. Promotions are a key example. Whilst strategically useful, they break the conditions an efficient supply chain prefers, i.e., stable flow and predictable volume.

Promotions can create spikes that overwhelm capacity, followed by dips as customers consume stockpiled goods. They can also shift demand across adjacent products, changing the mix in ways that undermine existing replenishment strategies across suppliers and the wider supply chain. In response, some retailers historically moved towards everyday low pricing, recognising that the operational cost of promotions outweighed the commercial upside when impacts were not understood upfront.

NEGOTIATING WITH EVIDENCE THROUGH SHARED SCENARIOS

Supplier trust can go a long way towards solving these challenges. In practice, it can be a strategic advantage when it improves the quality and speed of decisions across organisational boundaries. Whilst this is unlikely to entail a full ‘open book’ style collaboration, both sides need enough shared operational truth to reduce avoidable cost and risk, and to make any trade-offs explicit, rather than accidental.

Instead of negotiating by assertion, simulation allows teams to evaluate decisions through a shared, operational model of the system and test outcomes before they commit.

A simulated environment supports scenario-based thinking that reflects how supply chains actually behave. Rather than relying on a single forecast, teams can evaluate a range of plausible outcomes with collective foresight. They are able to ask themselves the crucial question – ‘How would the system perform if this happened, and what would it cost?’

This range-based view or probabilistic planning is particularly useful in supplier relationships because it helps both parties see how commercial terms behave under stress and where any fragility is introduced across a wider range of possible scenarios. Strategic choices can be made on the basis of operational truth, and trust becomes tangible when it is backed by data-led evidence.

When both sides can clearly see operational impacts, conversations move faster, disputes are resolved more quickly, and agreements are more robust because they reflect reality.

A shared model also makes it possible to revisit policies via collaborative probabilistic planning, addressing issues such as product flow. Static thresholds and inherited rules often dictate whether items should, for example, route through a national distribution centre, go directly to regional sites, or flow directly to the store. However, the relevance of these rules often degrades over time as range, volume, and mix evolve.

Items held centrally unnecessarily can congest national sites and carry additional handling costs, whilst regional capacity sits underused. As costs rise, margins and service suffer, supplier relationships face greater strain. A shared model supports practical decisions about where stock should flow, and the potential ramifications for capacity and service when assumptions and volumes change.

BACKED BY OPERATIONAL EVIDENCE

Supplier trust becomes possible when backed by operational evidence. In volatile conditions, the supply chains that perform best are the ones that can avoid agreements that look strong on paper but create hidden costs within the network.

Decisions amongst leaders that have previously caused friction, such as increased minimum order quantities, pack size changes, or new range introductions, can be modelled in a combined system. Scenario testing and the resulting outputs can be used to align on trade-offs before they become problems.

With shared foresight and decisions that hold up in the real world, trust stops being an aspiration and starts delivering performance.

The post Kallikor : Turning Supplier Trust into a Strategic Advantage appeared first on Supply Chain Outlook.

REDEFINING RESILIENT PROCUREMENT

With myriad socioeconomic factors leading to many companies planning for geopolitical disruption as standard in 2026, supply chains across the world are feeling the effects.  

Traditionally, procurement functions have been responsible for managing supply chain risks in instances such as these, assessing supplier resilience and analysing financial stability by ascertaining whether a supplier is likely to remain solvent.  

Since the onset of the COVID-19 pandemic, however, the scale and complexity of the risk involved has changed dramatically.  

Disruptions are now more systemic, less predictable, and no longer just about single points of failure – risks can hit multiple areas of a supply chain simultaneously.  

“You might have a financially healthy supplier that’s suddenly affected by unanticipated external shocks, which then ripple through your operations,” opens Matthew Rose, UK Managing Director of Inverto – a leading global consultancy specialising in strategic procurement and supply chain management.  

Fully acquired by Boston Consultancy Group (BCG) in 2017, Inverto operates as an independent entity within BCG, serving as its specialist arm for procurement, operations, and supply chain projects.  

Rose notes how some risks are highly visible today, such as tariff volatility and global conflicts, which have become an important point of discussion amongst Inverto’s clients.  

Meanwhile, less tangible challenges such as climate change have emerged as a major concern for the company’s food sector clients, with environmental changes in many regions potentially requiring them to diversify their sourcing locations.  

“Over in the technology sector, we’re seeing hyperscalers investing heavily in data centres and absorbing large volumes of supply, which has driven unexpected price increases for many,” he adds. 

In response, businesses are beginning to rethink their supply chain strategies – such as one of Inverto’s customers in the manufacturing space who once opted for lean, cost-efficient production concentrated in a single location. 

Now, with Inverto’s help, the client in question is manufacturing a broader mix of products across multiple sites – which may be less efficient on paper but spreads risk.  

“In doing so, this client is not just safeguarding the continuity of their supply chain but preserving its margins against potential future shifts in the trade environment,” Rose points out.  

ADDING VALUE AT SCALE 

In the face of supply chain disruption, Inverto outlines how scaling artificial intelligence (AI) across procurement processes can add significant value.  

“It’s an incredibly exciting time for AI in procurement. Historically, the sector has received less investment than front-end functions like sales and marketing – but today, the opportunities are enormous,” Rose excites.  

Procurement sits at the very centre of a complex network, linking global supply chains with company demand.  

Traditionally, it has operated with tools such as source-to-pay platforms or enterprise resource planning (ERP) systems – analysing spend, contracts, and capital.  

Today, AI is having a transformative effect on these processes, enabling them to link end-to-end demand and supply signals. 

“Take, for example, a chocolate manufacturer using nuts as a commodity ingredient. Nut prices fluctuate not only due to demand but also changing crop yields and weather patterns. 

“AI can analyse external data such as weather forecasts and agricultural output trends, alongside internal data, to predict price movements months in advance.  

“This kind of insight allows the manufacturer to adjust ingredient mixes without compromising on the customer experience and product quality, protecting margins against commodity spikes,” Rose exemplifies.  

In this way, AI brings together disparate internal and external data sets and allows complex decisions in real-time – something that previously may have taken weeks of manual analysis.

DIVERSIFICATION IS KEY 

As many procurement processes become increasingly drawn to nearshoring in light of the current geopolitical climate, multi-sourcing and regional supplier networks have never been more important to supporting supply chain resilience and margin stability.  

The COVID-19 pandemic provides a stark example, when Inverto saw many consumer goods organisations absorbing billions in additional working capital costs by building up local inventory to offset international supply risk.  

“This kind of activity proved expensive and unsustainable – whereas today, we’re seeing more proactive modelling around risk planning,” Rose outlines.  

For Inverto, this translates into diversifying supply chains and removing single points of failure by multi-sourcing across suppliers and countries.  

This could mean avoiding sole-source supplier relationships or spreading demand across different regions.  

“It might also involve creating optionality in components and ingredients for reducing dependency,” he emphasises. 

One of Inverto’s building materials clients, for example, is diversifying across multiple Asian markets.  

“Whilst still benefitting from strong manufacturing capabilities and cost structures, the client has reduced its reliance on any single country,” Rose explains.   

In this way, whilst managing a broader supply base can add complexity and may increase costs, it can also create access to innovation, new ideas, and emerging markets.  

GENUINE GROWTH DRIVER 

With margin and revenue growth, product quality, and innovation firmly on the agenda for Chief Procurement Officers (CPOs) in 2026, supplier innovation has become a critical engine of progression.  

Taking software development as an example, Rose explains how 20 years ago, a third of this kind of activity was carried out in-house.  

“Fast forwards to today, and most organisations rely on specialist external providers, with the depth of expertise required to build world-class technology often unattainable internally,” he sets out.  

As a result, businesses are becoming more reliant than ever on their supply chains – particularly those in non-core areas.  

At the same time, globalisation has created an enormous pool of external knowledge and capability. 

“No single procurement function is able to fully access this talent pool without building the right supplier relationships,” Rose urges.  

As such, by partnering with specialist providers, many of Inverto’s clients are able to not only acquire capability but also benefit from the innovation those providers bring thanks to their growing expertise. 

“The challenge is cultural – if procurement’s sole focus is on price negotiation, then suppliers are unlikely to invest in innovation,” Rose details.  

Therefore, CPOs must rethink supplier relationships and create partnership models, contractual incentives, and joint business planning frameworks that align objectives beyond transactional costs to succeed.  

“That’s where supplier innovation becomes a genuine growth driver — not just a cost lever,” he adds.

ENABLING INNOVATION 

As supply chains continue to face sustained geopolitical disruption in 2026, Inverto is looking to enable innovation for its clients across all sectors with a twofold approach.  

“First, we will expand our global footprint. We opened offices in Atlanta, the US, Bangkok, Thailand, and Riyadh, Saudi Arabia during the last 12 months, amongst other areas,” Rose tells us.  

Being close to its global clients matters to Inverto, particularly as advanced procurement increasingly involves shaping demand and building supplier partnerships on the ground – not just negotiating ideas.  

Secondly, the company plans to continue its investment into generative AI, which is already embedded across many of its solutions. 

“For instance, we are already using AI to analyse spend data and identify value opportunities in a matter of days – a process that historically might have taken us weeks or even months,” he reveals.  

Inverto is also helping its clients to monitor supplier input costs in real-time.  

“If a supplier relies on commodities like nuts or fertiliser, we can anticipate their upstream cost pressures and future pricing trends by using AI technology, enabling them to mitigate inflationary risks proactively.”  

As such, whilst Inverto already offers a comprehensive end-to-end suite of procurement solutions for its clients, the company understands the myriad opportunities presented by new technologies.   

“Generative AI is something Inverto intends to leverage, and we plan to continue investing heavily in that space in the year ahead,” Rose confidently concludes.

The post Inverto : Redefining Resilient Procurement appeared first on Supply Chain Outlook.