Key Takeaways
- Innovation and resilience come from removing constraints, adopting technology strategically, and blending adoption with change management.
- AI creates value only when built on disciplined, accurate data, which enables faster, more informed decisions.
- Modular, flexible automation delivers more long-term value than rigid, fixed systems.
Supply chains have always been complex systems, balancing cost, efficiency, and resilience. But in recent years, the pace of change has accelerated: automation, AI, energy transition, and the need for flexibility have all moved from theory to executive-level conversations. At Flexe, we believe that innovation is not just about chasing the latest trend — it’s about identifying and removing the real-world constraints that prevent supply chains from performing at their best.
In a recent conversation with Will O’Donnell, Managing Director at Prologis Ventures, we explored the future of supply chain innovation, the technologies shaping logistics, and the organizational shifts required to truly capture value. The discussion underscored a powerful theme: resilience comes from clarity, flexibility, and a willingness to rethink long-standing assumptions.
Removing Constraints as the Foundation of Innovation #
“Innovation occurs when constraints are removed and whitespace opens up.” That simple but powerful observation reframes how supply chain leaders should think about technology adoption.
Too often, organizations implement tools or processes out of habit, not because they drive the best outcomes. O’Donnell cited examples ranging from McDonald’s decision to extend breakfast hours to Apple’s move to open the iPod to Windows users — both instances where removing self-imposed limits unlocked massive growth.
For supply chain operators, the lesson is clear: identify the pain points created by outdated norms, processes, or technologies, and then apply innovation to eliminate those friction points. This approach grounds technology adoption in solving real problems, rather than chasing hype.
The Role of AI: From Data Discipline to Decision Velocity #
Few topics dominate today’s logistics conversations like artificial intelligence. But as O’Donnell pointed out, AI is only as valuable as the data that powers it. Prologis spent years standardizing data entry, improving accuracy, and building a usable data lake before AI became transformative.
That discipline paid off. With structured, accurate data in place, the company rolled out an internal “Prologis GPT” used by nearly its entire workforce. The result: tasks that once took 70–80% of a person’s time — like compiling information or preparing for decisions — now take just 10%.
The takeaway for the industry is not simply “adopt AI.” It’s that AI enables faster, more confident decision-making only when organizations first invest in data quality and process clarity. In a world where no model can predict a stuck vessel in the Suez Canal or sudden tariff changes, decision velocity is the true differentiator.
“If you digitize a bad process, you just spend a lot of money and still have a bad process.”
Automation: Flexibility and Resilience Over Fixity #
Supply chain automation has often borrowed from manufacturing, where fixed systems and repeatable processes thrive. But logistics doesn’t operate that way. With near-infinite SKU variability and seasonal fluctuations, rigid automation can quickly become a liability.
The new wave of modular, flexible automation — including autonomous mobile robots (AMRs) — represents a shift toward scalability and adaptability. Unlike fixed conveyors or ASRS systems, modular automation can move across facilities and support diverse workflows. This flexibility ensures that automation investments retain value as operations evolve.
Still, as O’Donnell noted, the challenge isn’t just adding the latest robots. It’s orchestrating technologies, integrating with WMS platforms, and ensuring automation enhances — not complicates — human work.
Change Management: The Human Side of Innovation #
Technology alone doesn’t transform supply chains — people do. One of O’Donnell’s most candid points was about underestimating change management. Even obvious improvements can fail if employees don’t understand or embrace them.
Adoption isn’t just about proving ROI; it’s about showing frontline teams how tools improve their day-to-day work. In Prologis’ case, tying data accuracy to bonuses and later demonstrating its value through AI adoption created buy-in that no top-down directive could have achieved.
For leaders, the lesson is to prioritize pilots, proof points, and storytelling. Get people hands-on with the tools, celebrate early wins, and recognize that resistance is natural. As O’Donnell put it, “Repetition doesn’t ruin the prayer.” Consistent messaging and incremental proof points drive cultural change.
Looking Ahead #
Innovation in supply chain isn’t about adopting every new technology. It’s about asking the right questions:
- What constraints hold us back?
- How can technology remove those constraints?
- How do we prepare our people and processes to adapt?
AI, automation, digital twins, and sustainability initiatives will all play critical roles in shaping the next decade. But resilience will remain the ultimate goal: supply chains that can flex, respond, and thrive under uncertainty.
At Flexe, we believe the companies that succeed will be the ones that embrace fractional warehousing — unlocking the ability to expand or contract capacity on demand — while also building cultures of adaptability, data-driven decision-making, and partnership across their networks. Organizations that lean into flexibility and lead with clarity will set the pace for the supply chain industry of the future.
And conversations like this one with Will O’Donnell are just the beginning. The Flexe Logistics Leadership Podcast brings together perspectives from across the industry — founders, executives, and innovators — to help you navigate what’s next.
Supply Chain Insights: The Logistics Leadership Podcast
You might also be interested in: #
