How AI Boosts Supply Chain Visibility to ‘Follow the Flow’

Singapore leverages AI 'digital twins' to navigate food supply chain crises Robert de Souza of the Logistics Institute Asia-Pacific helped NPF International Trade fellows understand how AI 'digital twins' help strengthen the global supply chain by closely tracking the journey of goods. by Pamela Roberts, National Press Foundation SINGAPORE – Global food supply chain disruptions create major adversity, especially in Singapore, where 95% of its food is imported. Robert de Souza, executive director of The Logistics Institute Asia-Pacific, spoke about Singapore’s new approach to supply chain security through AI-enhanced digital twin technology during the National Press Foundation International Trade Reporting Fellowship in Singapore. “When somebody closes their border to us, it’s existential. It’s not a minor inconvenience,” de Souza said. Singapore, a commerce and financial hub with massive port operations, is a unique market. It is highly dependent on imports, its domestic market is small compared to others, and its city-state infrastructure is urban with no smaller gateway ports to bring goods around the small country. “Today we are under threat,” de Souza said. “It’s a crisis. Things are stuck. So suddenly the supply chain becomes visible.” And when the commodity is food, there’s added pressure. As de Souza pointed out, “one thing’s very particular about food, if it doesn’t get to you on time, it’s garbage.” De Souza and his colleagues at the National University of Singapore’s research and educational institute at the National University of Singapore began their work with Singapore’s most essential staple: rice. It’s so elemental that in Singapore, when people ask, “what’s your job?” it is phrased “what’s your rice bowl.” As de Souza said, “you don’t break somebody’s rice bowl. So, we’re very careful about rice. It has to get where it’s needed very quickly.” Food can quickly become a political issue that disrupts economies. If food isn’t affordable, it can sow political chaos. Getting rice and other staples reliably and quickly from where they are produced to where they are consumed is essential. While supply chains may look basic, they are critical to survival – and there are choke points that can take days or even years to overcome. “We can have all the food that we want to, but if I can’t get it to you, you don’t have it,” de Souza said. Without supply chain visibility, suppliers may miss a market opportunity. De Souza and his colleagues are focused on advancing logistics and supply chain quality globally. AI advancements allow the creation of a computer model just like a control tower at the airport – a digital twin that is a real-time replica of the supply chain. The digital twin can run “what if” scenarios to solve problems, improve efficiency and reduce waste. The technology maps all the routes and what goods are moving, monitoring the whole network for every commodity. The digital twin helps anticipate the possible disruptions, the geopolitical situation and natural weather patterns. The team uses AI but also scouts additional information sources. The technology helps inform an evolution away from “transit blindness,” where suppliers are no longer simply interested in the shortest route but are opting for the most secure route. The old tracking software was modified to anticipate geopolitics in addition to geography. The big challenge de Souza and his colleagues now face is overcoming the reluctance of countries and private companies to share data. As he encourages others to integrate and share information, de Souza cautions that while the network makes the supply chain visible to a level that’s useful, it does not compromise any supplier’s competitive advantage. The digital twin has helped revise thinking in supply chains to “follow the flow” instead of focusing on the source or the origin. “We need to know where things are all the way through,” de Souza said. “We need to have alternatives for every stage of the supply chain. Can you imagine the detail that’s required now from supply chain professionals?” Gone are the days when trouble was anticipated only when food didn’t arrive in port. “We want to track from source all the way through its transit points to us. And if it’s not going to get there, we want to play out alternative scenarios to get it there.” Speaker: Robert de Souza, Executive Director, The Logistics Institute - Asia Pacific This fellowship is part of an ongoing program of journalism training and awards for trade coverage sponsored by the Hinrich Foundation. NPF is solely responsible for the content. This video was produced within the Evelyn Y. Davis studios.