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Longer lasting Belts, New Split Spools -- no regrind:Layout 1 8/26/2009 4: 37 AM Page 1
and individuals are unlikely to learn the
rules of classification, Pride says. Instead,
they quickly “pick what they think is OK”
and move on with the transaction. Until
AI and ML are built into couriers’ systems,
classifications for many e-commerce shipments will continue to be incomplete and incorrect, she says.
Breede says that, while AI and
ML are “still in an infancy stage”
Joshi of E2open believes that AI and ML
could convert tactical functions like classification and denied-party screening into
strategic tools. For example, a company
could use them to gather data that would be
relevant as an order progresses through the
supply chain, identify important correlations, and attach the information early on,
such as when a purchase order or booking
is issued, he says. Such information might
include why the product is being sourced
from a particular region and an advisory
noting that if it is trans-shipped through
a certain port, that cargo will require
denied-party screening. “Even though such
considerations may seem to be tactical,
when you pull them further upstream, they
can be more strategic,” he says.
In this scenario, the roles of customs bro-
kers and third-party logistics service provid-
ers (3PLs) will change. “Rather than paper
pushing, they will focus more on moving
product, on logistics and warehousing, on
being the relationship liaison with carriers
and ports,” Joshi predicts. “Some may go
away, while others will change the work
content and value they provide.”
Breede sums it all up this way: “As AI and
ML are introduced into an industry, they
reshape that industry’s practices. ... What’s
clear is that artificial intelligence and its
associated technologies will continue to
transform how trade experts interact with
information and machines.”
Experts say there’s a line that
shouldn’t be crossed when it
comes to automating classification.
“Of course you want the
machines to do as much as
possible,” says Joshi. “But
the moment they reach a
certain threshold or lim-
itation on the degree of
confidence, then you want
to stop and flag the task for
a human expert to assess.”
There’s another reason
to think carefully about the
use of AI, Breede says. “AI systems
will be powered by algorithms ana-
lyzing an organization’s vast vol-
umes of global trade data, and, if
left unchecked, these tools have the
potential to amplify any human
biases the organization inadvertent-
ly has perpetuated in its supply
chain operations.”
All of the experts we consulted
expect that AI and ML will become
widely used for classification, in
large part because human expertise
is in short supply. The growth of
cross-border e-commerce will pro-
vide further incentive to adopt these
technologies. When shippers book
an international shipment with a
parcel carrier, they’re forced by
the booking software to provide a
classification. Large shippers know
what to do, but small companies
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