Amid Supply Chain Pressures, It’s Time to Prioritize AI in Yard Logistics

To call today’s supply chain environment “high pressure” feels like the understatement of 2025. Supply chain leaders are feeling the squeeze on multiple fronts: costs and interest rates remain high, tariff rates are rising (then falling, then rising again), and consumer demand feels about as solid as consumer confidence — which is to say, shaky at best. At the same time, companies have been forced to pull forward inventory purchases, creating a squeeze where carrying costs are up while cash flow is tight.

As pressures mount, the last thing chief supply chain officers (CSCOs) need is a weak spot along the chain. Yet, from my conversations with customers, it’s clear that the yard is akin to a black hole of profitability for many companies, where precious dollars are wasted on delays, penalties, lost inventory, and more.

These yards either lack actionable, real-time insights or rely on outdated, manual processes, or both. Until a trailer is unloaded and the warehouse records that inventory, it’s not reflected in the company’s warehouse management systems. They want to get a more accurate picture of what’s actually on hand, but they’re sending someone out with a clipboard to check which trailers are loaded, which are empty, and what’s inside. It’s a slow, manual process, and even then, the data isn’t always reliable.

The question supply chain leaders are asking is: How can we drive more efficiency with fewer people, and get more accurate information in the process? As CSCOs work to tightly manage their inventory levels and financial risks, I believe AI-driven yard operations are no longer optional.

AI can tackle persistent yard challenges

Artificial intelligence, including generative AI platforms and AI agents, has the power to solve several long-standing challenges in yard management.

Here are three critical areas where I see AI driving the greatest impact in the short term:

• Detention fees: Manual appointment scheduling through disconnected systems leads to inefficiencies, delays, missed appointment fines, and detention fees. AI-powered scheduling agents streamline the entire lifecycle, handling real-time facility scheduling  across portals, emails, and even phone calls. AI systems can also generate artifacts to help shippers contest penalties more effectively.
• Inventory management: AI enhances yard inventory management by providing real-time tracking and predictive analytics to optimize the flow of goods. From precise visibility of trailer locations to container statuses and dock availability, AI helps CSCOs reduce delays and improve throughput. AI also automates scheduling and resource allocation, ensuring faster turnarounds and better coordination between inbound and outbound shipments.
• Labor costs: Forget clipboards, radios, and homegrown management systems. AI dramatically reduces the need for human intervention by automating critical yard management workflows, including trailer audits, scheduling, and gate operations. Facilities can scale operations around the clock without adding headcount.

New tools unlock the yard’s full potential 

My company, FourKites, recognized the urgent need to modernize the yard with AI. We introduced YardWorks AI, integrating advanced AI agents, computer vision and digital twins to form our Intelligent Control Tower platform, helping customers transform the yard from a bottleneck into a strategic asset.

YardWorks AI includes a new AI Agent, Alan — our scheduling automation expert who handles appointment booking like an experienced human operator. Alan works 24/7 across all channels, reducing scheduler workloads and providing a single source of truth.

We also introduced AutoGate AI, a computer vision-powered gate system that validates trucks, automatically reduces check-in times, and enables 24/7 secure operations. Our AutoBooker scheduling system provides a unified calendar that connects stakeholders and adjusts to network conditions, with automated conflict resolution. And Dynamic Yard is our AI-enabled Yard Management System (YMS)s, tracking all assets and movements with automated spotter task management and proactive detention monitoring.

By automating operations as well as administrative decisions, AI unlocks substantial time and cost savings in the yard, helping CSCOs shift their focus toward strategic initiatives and continuous improvement.

It’s time to get smart in the yard

The pressure is on, and today’s CSCO can’t afford to let their yards remain passive storage areas that drag down profits. With AI-driven orchestration, yards can become what they were always meant to be: efficient hubs that synchronize transportation and warehouse operations, ensuring goods move swiftly and accurately to their final destinations. The future of yard operations is AI-powered — it’s time for CSCOs to take the leap.

Matt Elenjickal is the Founder and Chief Executive Officer of FourKites. He founded FourKites in 2014 after recognizing pain points in the logistics industry and designing elegant and effective systems to address them. Prior to founding FourKites, Matt spent 7 years in the enterprise software space working for market leaders such as Oracle Corp and i2 Technologies/JDA Software Group. Matt has led high-impact teams that implemented logistics strategies and systems at P&G, Nestle, Kraft, Anheuser-Busch Inbev, Tyco, Argos and Nokia across North America, Western Europe and Latin America. Matt is passionate about logistics and supply chain management and has a keen sense for how technology can disrupt traditional silo-based planning and execution. Matt holds a BS in Mechanical Engineering from College of Engineering, Guindy, an MS in Industrial Engineering and Management Science from Northwestern University, and an MBA from Northwestern’s Kellogg School of Management. He lives in Chicago.

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