AI for Logistics and Supply Chain

Late shipments, carrier rate surprises, warehouse inefficiency, and demand forecasts built in spreadsheets: these are operations problems that AI can reduce. The question is which problem to solve first and what data you already have to work with. We build AI systems for logistics and supply chain operations: demand forecasting models, route optimisation, predictive ETAs, carrier rate prediction, exception detection, document extraction from shipping documents, and load optimisation. Every system is scoped against your data and a specific operational outcome.

  • Demand forecasting models that reduce overstock and stockout simultaneously
  • Predicted ETAs and delay alerts before the customer asks where their shipment is
  • Carrier rate prediction so procurement buys at the right time, not the wrong time
  • Document extraction from BOLs, PODs, customs forms, and invoices without manual re-keying
See our work

Recent outcomes

Voice AI · Research

Text-based interviews converted to automated phone calls

6× deeper insights

AI Automation · Ops

Manual invoice OCR across 40+ gas stations

20k+ txns day one

Loyalty · Retail

SuperValu & Centra loyalty platform with receipt validation

1,062 users in 4 weeks

SaaS · Logistics

Multi-carrier shipping hub for Indonesian eCommerce

2,000+ shipments yr 1
4.9 / 5 on ClutchSee all work

RaftLabs builds AI systems for logistics and supply chain operations that shift your team from reactive to anticipatory. Demand forecasting models trained on your order history and external signals reduce both overstock costs and lost sales. Predictive ETA engines score each in-transit shipment by delay probability and surface high-risk shipments before customers call. Carrier rate prediction models tell procurement when to lock in contract rates versus stay spot. Document extraction eliminates manual re-keying from BOLs, PODs, and customs forms. Engagements run at a fixed price after a discovery phase that maps your operational data to the specific AI capability being built.

Trusted by

Vodafone
Aldi
Nike
Microsoft
Heineken
Cisco
Calorgas
Energia Rewards
GE
Bank of America
T-Mobile
Valero
Techstars
East Ventures

Operations that see problems before they become costs

Supply chain AI is most valuable when it moves your operation from reactive to anticipatory. Finding out about a delay when your customer does is not a system failure, it is a data and model failure. The information to predict the delay was usually there. The question is whether your system acts on it.

Capabilities

What we build

Demand forecasting models

Demand forecasting models trained on your historical order data -- typically 18--36 months of line-item order history at the SKU and location level. Model architecture selection based on your data characteristics: LightGBM or XGBoost gradient boosting for large SKU catalogues with strong feature engineering (pick frequency, days-since-last-sale, price elasticity, lead time); Temporal Fusion Transformer (TFT) for datasets with complex seasonal and trend patterns where the transformer's attention mechanism identifies long-range temporal dependencies; Prophet (Facebook open source) for SKUs with clear weekly and annual seasonality where interpretability is more important than marginal accuracy gains. External signals incorporated into the feature set: promotional calendar (promotions historically increase velocity 1.5--4x; the model learns the lift multiplier per promotion type and product category); pricing history (price elasticity estimated per SKU to adjust the forecast when prices change); weather data for weather-sensitive categories (OpenWeatherMap historical API); economic indices for high-value durable goods categories. Output format: daily or weekly forecast per SKU per location with P10/P50/P90 confidence intervals -- the P10 and P90 bounds inform safety stock calculations at the desired service level. Accuracy metrics reported as Weighted Absolute Percentage Error (WAPE) or Mean Absolute Scaled Error (MASE), compared against your current forecast method as a baseline so the improvement is quantified before deployment.

Route optimisation

Route optimisation using the Vehicle Routing Problem with Time Windows (VRPTW) solver augmented with ML-derived travel time predictions. Standard TMS routing solves VRP with static distance matrices; our approach replaces static distances with ML-predicted travel times that incorporate real-time Google Maps Platform/Mapbox Traffic API signals, historical traffic patterns by day-of-week and hour, and weather conditions affecting road speed on specific lane types. Dynamic re-optimisation: routes are re-calculated at configurable intervals during the day (every 30--60 minutes) as traffic conditions, driver locations, and new orders are updated -- stops can be resequenced or reassigned between vehicles to maintain on-time delivery as conditions change. ML performance learning: historical route outcomes (actual vs planned delivery times, overtime events, late deliveries) are used to build driver-specific and lane-specific correction factors. A driver who consistently runs 15% slower than the planned route time on suburban stop sequences gets a route planned with that buffer built in. Constraints modelled: vehicle capacity (weight and volume), customer time windows (hard and soft), driver hours of service regulations (EU Working Time Directive / US FMCSA Hours of Service), vehicle compatibility per stop (refrigerated vehicle required, narrow access), and driver certification requirements per cargo type. Integration: route output delivered to your TMS (Oracle TMS, SAP TM, BluJay, project44) or dispatch app via REST API; driver assignment and sequence updated in real time in the driver's mobile app.

Predictive ETA and exception detection

Predictive ETA and exception detection models score each in-transit shipment at booking and update the risk score as new data arrives during transit. Feature set per shipment: carrier (historical on-time performance for that carrier on this lane, last 90 days); origin-destination lane (historical exception rate for this specific lane, seasonally adjusted); days in transit vs expected transit time (shipments at day N of M carry a different risk profile than those at day 1); weather conditions along the route (tomorrow's forecast weather for the remaining route segments from OpenWeatherMap or Tomorrow.io); carrier scan events (a shipment with no scan in the last 24 hours has a statistically higher exception rate than one that scanned this morning); and shipment characteristics (heavier, larger shipments and temperature-sensitive cargo have higher exception rates on specific carriers). Model output: a delay probability score (0--1) and an estimated delivery date range (P25/P50/P75) rather than a single point ETA. Operational actions triggered by score thresholds: high-risk shipments (score above 0.7) surface to the operations exception queue with the contributing risk factors listed in plain language ("Carrier X has a 34% on-time rate on this lane in Q4; shipment has not scanned in 18 hours; weather delay forecast for destination city today"). Customer-proactive notification: shipments above a configurable threshold trigger an automated customer notification with a revised ETA range and a carrier escalation action -- the notification arrives before the customer contacts you, which drives measurably lower inbound exception call volume.

Carrier rate prediction

Carrier rate prediction models forecast spot and contract rate movements for specific lane-mode combinations (FTL, LTL, parcel, air freight) at weekly and monthly horizons. Feature engineering for rate models: diesel fuel price index (US EIA weekly diesel retail price data; EU Eurostat fuel price); DAT Solutions or Freightos Baltic Index historical spot rate data; carrier capacity utilisation signals (tender acceptance rate from freight indices -- a falling acceptance rate signals tightening capacity and rising rates); seasonal demand patterns (Q4 peak, produce season, retailer inventory restocking cycles); and macro freight demand indicators (ISM manufacturing PMI, US Census retail sales data). Model architecture: XGBoost regression with lagged features for the primary rate prediction; ARIMA for the residual component to capture mean-reversion patterns in rate cycles. Output: lane-specific rate forecast with a confidence range for the next 4 and 8 weeks, with a "buy now vs wait" recommendation signal based on whether the model predicts rates will rise or fall. Procurement use cases: the model tells the freight buyer whether to lock in a 90-day contract rate today or wait for better spot conditions in three weeks; it surfaces lanes where spot rates are currently favourable relative to contracted rates, enabling tactical spot purchasing on those lanes while maintaining contracts on lanes where spot is above contract. Historical backtesting is run against your rate transaction data before production deployment to quantify the predictive accuracy the model achieves on your specific lanes.

Shipping document extraction

Shipping document extraction uses a combination of OCR and LLM-based extraction to parse structured data from the unstructured layouts and varying formats of logistics documents. Document types handled: bills of lading (BOL) -- shipper name and address, consignee name and address, notify party, carrier and SCAC code, pro number, commodity description, weight, piece count, freight class, special instructions, and hazmat information; proof of delivery (POD) -- delivery timestamp, recipient name and signature, exception notes, and condition notes; customs entry documents (CBP 3461/7501 for US imports, UK Customs Declaration for UK, EU Intrastat) -- HS codes, declared values, country of origin, tariff duty classification; commercial invoices -- invoice number, line items with HS codes and values, Incoterms, and total invoice value; and carrier freight invoices (for three-way matching against TMS rate confirmations). Document input formats: PDF (both digitally generated and scanned); TIFF and JPEG images from driver mobile apps; email attachments from carrier notifications. Extraction pipeline: document classification (identify document type before applying the type-specific extraction model); OCR via Azure Document Intelligence or AWS Textract (handles skewed scans and handwritten annotations); LLM extraction step using GPT-4o or Claude with structured output mode to interpret ambiguous fields and normalise addresses, dates, and weights to your required format. Extraction confidence scores per field: low-confidence extractions are queued for human review with the relevant document region highlighted, rather than being silently inserted into your TMS with an error. Output delivered via API to your TMS (Oracle TMS, SAP TM, MercuryGate) or ERP.

Load and warehouse slotting optimisation

Load optimisation solves the 3D bin-packing and weight-distribution problem to maximise trailer or container utilisation and ensure legal axle weight compliance. Input data: each shipment's SKU list with dimensions (length, width, height) and weight per unit; trailer or container dimensions; stackability constraints (fragile items, hazmat segregation, FIFO loading for multi-stop routes); and legal weight limits (US federal bridge formula; EU Directive 96/53/EC GVW limits). Optimisation output: a load plan showing item placement within the trailer with a 3D rendering, estimated utilisation percentage, weight distribution per axle, and loading sequence for multi-stop routes (last-off items load first). Achieving 5--12% improvement in trailer utilisation on mixed freight loads is common; the direct saving is fewer trailers per week for the same shipment volume. Warehouse slotting optimisation analyses your WMS pick history to recommend slot assignment changes that reduce total pick travel distance. Analysis dimensions: pick frequency per SKU (A/B/C velocity classification); co-order frequency (SKUs that appear in the same order frequently should be slotted in adjacent locations to reduce inter-aisle travel); order weight and ergonomic constraints (heavy items slotted at waist height, not overhead); and seasonal velocity shifts (SKUs that move to A-tier for Q4 should move to prime slots for Q4). Output: a slotting recommendation report ranking proposed moves by expected pick distance reduction, prioritising high-impact moves that justify the labour cost of physically relocating product. The model re-runs against updated pick history on a configurable schedule (monthly or quarterly) and surfaces moves that have become worthwhile as velocity patterns change.

Which logistics problem costs you the most right now?

Bring us the specific operational problem: late deliveries, forecast inaccuracy, excess carrier spend, or document processing time. We'll assess whether AI reduces it and what it costs to build.

AI for Logistics by area

Frequently asked questions

A demand forecasting model needs historical order or sales data, typically 18-36 months minimum, with enough granularity to detect seasonality and trend. Beyond the base demand history, the model improves significantly when you add external signals: promotional calendars (what promotions ran when), inventory availability history (was a stockout driven by demand or supply?), pricing history, and where relevant, external signals like weather data, economic indicators, or commodity prices. The model architecture we choose depends on the data you have. For most logistics and distribution businesses, a gradient boosting model or a temporal fusion transformer trained on your order history gives meaningfully better accuracy than a statistical forecast from a spreadsheet. We assess your data in discovery and tell you what accuracy improvement is realistic before we build.

Exception prediction is a classification problem. A model is trained on historical shipment data: shipments that completed on time, and shipments that experienced delays, damaged goods, missing documentation, or carrier failures. The model learns which combinations of signals, carrier, lane, origin-destination pair, time of year, weather conditions, shipment weight and dimensions, and days in transit, predict exceptions before they happen. At the point of booking or during in-transit monitoring, each shipment is scored. High-risk shipments are surfaced to your operations team with the contributing risk factors so they can intervene: hold alternatives ready, alert the customer proactively, or escalate with the carrier before the exception becomes a miss. The key difference from reactive tracking is that the alert comes before the delay is confirmed, not after.

Warehouse slotting is the assignment of SKUs to pick locations based on velocity, pick frequency, and co-order patterns. A poorly slotted warehouse has pickers travelling long distances for high-velocity items and fast-moving SKUs stored in inconvenient locations. Traditional slotting uses velocity-based rules: A, B, and C items by pick frequency. AI-based slotting adds co-order analysis, which identifies SKUs that are frequently picked together in the same order and places them near each other, and temporal patterns, which identify how velocity changes by day of week, month, or season. The output is a recommended slot assignment that reduces total pick distance and therefore pick time per order. For high-volume operations, slotting optimisation typically reduces pick travel distance by 15-30%. We build this as a model that runs against your WMS data on a scheduled basis and produces re-slot recommendations, not as a one-time exercise.

Standard TMS routing solves the vehicle routing problem using rules-based optimisation: minimise distance or time given a set of stops and vehicle constraints. This works well for predictable, static conditions. AI-based route optimisation adds two capabilities standard TMS tools lack. First, it incorporates real-time signals: live traffic conditions, weather, road incidents, and driver performance history. It re-optimises routes dynamically as conditions change, not just at the start of the day. Second, it learns from historical outcomes: which routes resulted in late deliveries, which drivers perform better on specific lane types, which stop sequences cause driver overtime. Over time, the model improves its routing quality because it learns from your specific operation rather than applying generic optimisation rules. For fleets running 50 or more routes per day, the combination of dynamic re-optimisation and learned performance patterns typically reduces fuel cost and late deliveries meaningfully. We scope the specific impact against your data during discovery.

Work with us

Tell us what you need. We'll tell you what it would take.

We scope AI for Logistics and Supply Chain in 30 minutes. You walk away with a clear cost, timeline, and approach. No commitment required.

  • Scope and cost agreed before work starts. No surprises. No obligation.
  • Working prototype within 3 weeks of kickoff.
  • Pay by milestone. You see progress before each invoice.
  • 60-day post-launch warranty. Bug fixes, UI tweaks, and deployment support. No retainer.
  • All conversations are NDA-protected.