In a McKinsey Talks Operations podcast episode, Sanjit Biswas, CEO and co-founder of Samsara, joins McKinsey’s Renee Jackson to explore how AI and digital solutions revolutionize logistics and supply chains. Samsara, a provider of AI-driven tools for physical operations, helps companies in logistics, construction, utilities, and government sectors to enhance safety, efficiency, and sustainability.
Biswas emphasizes the power of real-time operational data, which, when processed through AI, leads to actionable insights across an organization—from drivers on the ground to executives. Samsara’s tools gather data from sensors and vehicles to detect patterns and risks. Due to a stronger safety culture, clients like DHL have seen a 26% annual reduction in accidents, a 49% cut in related costs, improved driver morale, and halved turnover rates.
AI’s impact extends beyond safety. Logistics companies often underutilize physical assets like trailers and trucks. By analyzing movement data, Samsara helps clients identify idle assets, which can be sold or redeployed—unlocking tens of millions in capital. Digital workflows also replace paperwork and manual inspections, significantly reducing inefficiencies in daily operations.
Sustainability efforts benefit as well. AI supports smarter fuel usage and route optimization. Minor improvements, like a 2–5% reduction in fuel use, can deliver substantial emissions cuts and millions in savings.
The discussion also covers generative AI (gen AI), which Biswas sees as a powerful but still-maturing tool. He compares its current hype cycle to the early days of the Internet and smartphones, acknowledging its long-term potential while warning against premature overinvestment. Gen AI excels at synthesizing and interpreting large volumes of data. Fleet maintenance, for instance, can decode fault codes and predict costly breakdowns, transforming obscure alerts into actionable maintenance plans.
Biswas notes that most companies are early in their Gen AI journey. Many have digitized systems but remain siloed. Gen AI can help unify and unlock this data. Samsara typically starts projects with a focused pilot to derisk adoption, offering plug-and-play solutions rather than years-long ERP rollouts.
Biswas sees opportunities in emissions reporting, proactive maintenance, and streamlining complex supply chains. The key, he says, is identifying where digital tools can provide the most value and starting small to build success and momentum. Ultimately, AI is helping logistics become safer, greener, and faster, empowering everyone involved to work smarter.
Source: McKinsey