GXO Logistics Inc. last month launched GXO IQ, a platform using artificial intelligence to orchestrate global logistics operations. The company said the cloud-based system will help businesses manage millions of actions across warehouses, transportation, and people to increase productivity and flexibility.
“There are few environments more dynamic or complex than a modern warehouse,” stated Nizar Trigui, chief technology officer of GXO. “Thousands of micro decisions are made every day in every site. As throughput increases, experts need a system that thinks with them to effectively anticipate, manage, and orchestrate operations intelligently. That’s exactly why GXO IQ was built – to be the logistics operating system of the future.”
GXO Logistics claimed that it is “the world’s largest pure-play contract logistics provider.” The Greenwich, Conn.-based company has more than 150,000 employees across over 1,200 facilities in 27 countries totaling about 200 million sq. ft. (18.5 million sq. m).
Logistics experts build platform with Google Cloud
GXO IQ uses a suite of proprietary AI algorithms to orchestrate millions of complex, multi-step actions across inventory distribution and movement, order picking and packing, shipping, and staffing.
“This changes how technology is managed,” Trigui told Automated Warehouse. “As an AI-first platform, it’s the brain orchestrating all digital and physical operations.”
GXO noted that logistics experts designed GXO IQ, which uses a technology stack including Google Cloud’s Vertex AI and Snowflake Cortex AI. The tool also uses Google Cloud’s Apigee API management product to give customers secure access to critical warehouse data, said the company.
“Our Vertex AI platform helps GXO IQ deliver the predictive insights businesses need to anticipate disruptions and build more resilient, efficient supply chains,” said Paula Natoli, global director and head of supply chain and logistics at Google Cloud. “We see AI as the central nervous system of the modern supply chain, transforming it from a linear sequence of operations into an intelligent, interconnected ecosystem. GXO IQ is a powerful example of this transformation in action.”
GXO IQ includes four layers of management
GXO IQ includes four layers, separating the execution layer from business logic and intelligence, explained Trigui.
Data fabric layer build on GXO experience
The platform uses GXO’s operational expertise from 20 years of deploying supply chain systems for customers, along with inputs from thousands of front-line operators. It also uses a data lake built from billions of transactions.
Every day, more than 200 million signals are streamed and organized to form the data fabric of the platform that trains AI algorithms on every aspect of logistics operations, said the company.
“It’s not just raw data. We made a large investment and have the advantage of a lot of operational data,” said Trigui. “We restructured and enhanced it with additional metadata, such as macroeconomic or weather. It becomes pure operational data, not linked to a particular vertical or customer.”
“How can we proactively put things in place to make automation more effective?” he asked. “The more complexity we add to a facility — automation is not very forgiving of imprecision — the more we need decision making at the right time. We’re merging intelligence and automation to make both work better.”
AI orchestration layer directs both people, robots
GXO said its algorithms continuously run in the background, predicting demand shifts, anticipating inventory risks, and proactively initiating inventory movement. They can also identify the ideal pick, pack, and ship process of each order – all in real time.
“The orchestration layer is rich with AI, allowing us the agility to more easily add to business logic, such as for onboarding a customer,” Trigui said. “We can transition onboarding from one warehouse to another service. Because the business logic is all the same — whether onboarding inventory, moving it, or picking and packing an order — it’s all in the orchestration layer.”
“It’s the same whether a machine or a human does it,” Trigui said. “We pass that to the execution layer.”
GXO IQ execution layer is customizable
This GXO IQ layer features a full suite of logistics management capabilities with marketplace integration and value-added micro-services. They include order management, warehousing, returns, and transportation. Services are fully integrated into a cohesive offering that can be customized to meet the evolving needs of each customer, said GXO.
“Automation is best applied to repetitive, labor-intensive activities in high-throughput, high-velocity facilities,” noted Trigui. “We harness the logic of AI to direct humans and automation to execute tasks at even higher levels of efficiency. We’re the world leader, as more than 40% of our facilities are automated.”
Experience layer provides interactive guidance
GXO said its “operating system for logistics” includes new levels of interactivity. This layer of GXO IQ consists of a persona-based interface with a native, interactive AI agent called “GIL.”
GXO said it “provides a single view to see what’s important and help manage an entire process, from order-fulfilment status and exceptions management to inventory risk alerts.” GIL is intended to help identify opportunities, answer questions, and translate complexities into actionable recommendations.
“It had to be trained in the context of logistics, so this is not generic,” he said. “We leveraged our partners, Blue Yonder, Google Vertex, and Snowflakes Cortex. It’s an evolution of our work together, but this is a platform that GXO has developed to unleash yet another level of efficiency for our customers.”
“Next-generation operations need technology that doesn’t just prioritize efficiency but that anticipates, manages, and orchestrates operations intelligently. The evolution from automation to orchestration is the next leap,” added Trigui. “We’re no longer waiting and reacting but are proactively enhancing and kicking off activities.”
GXO IQ powers enhanced GXO Direct
GXO IQ powers the GXO Direct multi-tenant warehousing offering. The company recently added the services platform it acquired with PFSweb to the U.S. product.
GXO Direct includes fast onboarding, flexible space, cutting-edge technology and a nationwide network of fulfillment centers, according to GXO Logistics. The third-party logistics provider (3PL) has integrated PFS service capabilities including high-touch contact center services, secure payments and fraud protection, and distributed order orchestration systems.
“With our enhanced GXO Direct product, we can enable one-day delivery for brands anywhere nationwide, that offers fast start-up, lower fixed costs, flexible contract terms and an array of value-added services,” said Zach Thomann, chief operating officer of GXO in the Americas and Asia-Pacific.
