Artificial Intelligence (AI) will have a significant impact on the next generation of retail logistics. As the role of this developing technology continues to form, a leader with significant industry insights and scientific understanding becomes essential. In the right hands, supply chain management, last-mile delivery, and e-commerce operations have the potential for a positive transformation.
Tobias Waldhecker, an industrial engineer and spearheading strategist, shares his expertise and experience on what AI-driven innovations could soon have in store for these logistical fields.
Introducing Tobias Waldhecker: His Expertise in AI and Technology
Waldhecker began his career at a high-tech industrial manufacturing company in Germany. In 2016, the young AI expert received his Bachelor of Engineering from applied sciences university Hochschule Weserbergland.
He went on to work as a strategy consultant for Deloitte. Following his time at Deloitte, Waldhecker went to the Hult International Business School of Boston in pursuit of a Master's degree in Finance, where he started a business with two colleagues.
Although his company, Fuel Nutrition, was flourishing, it unfortunately had to shut down due to the COVID-19 pandemic. Disappointed but undaunted, he joined the gaming company Devsisters as the head of business development and partnerships before moving on to a position at Facebook, where he worked on creator tools, product strategy, and the monetization flywheel.
Waldhecker currently holds a senior managerial role in commercialization and strategy at Walmart, where he works on aligning AI with logistics and delivery systems.
Waldhecker notes that the strategy and commercialization of assets and businesses are defining aspects of his career. "I find it fascinating to use data to read and predict markets," he explains. "Since my days in consulting, I have been able to break down problems into its core elements and solve them structurally."
Waldhecker's understanding of AI reaches far beyond the technical. He also offers thought leadership in Walmart GoLocal alongside ConsumerGoods and discusses AI's role in transforming last-mile delivery and retail logistics. His published pieces on last-mile delivery and retail logistics transformation outline the future of e-commerce and delivery.
His work showcases how these two trends correlate and indicates that last-mile delivery can be successfully implemented for retailers looking to benefit from this method.
The Science of AI in Last-Mile Delivery
Businesses often use AI to demand, forecast, and optimize route planning so they can improve delivery efficiency while reducing overall costs. Waldhecker uses specific AI algorithms and Machine Learning (ML) models and indirectly contributes to developing all the systems the company is currently constructing.
In essence, his team aims to create a largely centralized logistics AI that will connect to warehousing information, delivery, and demand tools. These tools should then be capable of planning, forecasting, and optimizing where parcels need to go in real time. Although he believes the company's end goal for delivery and logistics is far away, he remains optimistic while overseeing the early stages of this process.
The Utilization of AI in Supply Chain Management
Waldhecker recognizes that AI is being used sparingly in demand and trend analysis. Specifically, emerging technology utilizes vast amounts of data to comprehend and predict patterns in retail and shopping. While Walmart productively leverages large sums of this data, Waldhecker finds that more automation could benefit the company's desire to increase efficiency and maintain its cost-conscious goals in the future. Additionally, automating repetitive tasks could supplementally reduce the need for manual labor.
Many manufacturers use AI to uncover insights from data that make their assembly processes and logistics networks more convenient. AI tools can help forecast supply chain demand, identify issues, and streamline operations.
Overcoming Challenges in Scaling Logistics AI and Beyond
Waldhecker sees some significant obstacles in the future when scaling AI in logistics. "A big problem will be waste and competing AIs," he states. "The proliferation of multiple AI systems from various companies like FedEx, Uber, and UPS all provide similar solutions." Waldhecker explains how these AI systems will be highly "power-hungry," creating a chain of waste when it comes to delivery vehicles and warehousing resources.
For now, the competitive nature of the field is necessary to fuel innovation. Still, Waldhecker believes that these industrial issues could raise an ethical question about sustainability or lead to later consolidation.
He has also faced personal hurdles over the course of his career. In late 2022, he was part of the first layoff wave at Facebook, where 10,000 employees were let go. The setback was particularly difficult due to his connections to coworkers and the projects that abruptly halted.
Losing a sense of self-confidence was expected but not a deal breaker, as he ultimately learned from his experiences and developed a positive outlook.
The Future of AI in Logistics and Retail
Waldhecker reflects on his experiences over the last decade as he looks onward. His vision for the future spotlights the potential integration of AI with autonomous delivery vehicles, drones, and Electric Vehicles (EVs) to optimize the delivery ecosystem. He ultimately hopes to make supply chains and transportation more efficient overall.
It is challenging to move millions of packages from point A to point B each day, and Waldhecker sees the possibility of a future where the solution to these challenges lies within emerging technological trends like AI. He also draws attention to the real breakthroughs, with connections to multiple logistical layers, that could arise from AI successfully planning, forecasting, and optimizing parcel delivery on a large scale in real time.
Tobias Waldhecker's expertise in AI and logistics highlights his role in shaping the future of retail and supply chain management. His insights into the integration of AI in last-mile delivery and supply chain optimization show the potential for AI to streamline operations, reduce costs, and improve efficiency. However, Waldhecker also notes challenges, including the spread of competing AI systems and sustainability concerns.
Looking ahead, Waldhecker foresees an ecosystem where AI-driven innovations like autonomous vehicles and drones could further transform logistics. His ongoing work and contributions will likely help guide these advancements and address the challenges that come with them. As AI continues to develop, leaders like Waldhecker will play a key role in navigating its impact on retail logistics.
