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• Transcript

  Melissa Harrison (00:07): 

  Welcome to this special Inside Innovation episode of CES Tech Talk, where we talk about the latest tech, ideas, and innovations that are reshaping industries. In this episode, we're exploring how AI and digitization are reshaping logistics and supply chains for consumer tech. I'm Melissa Harrison, and joining me is Jason Pawlowski, Vice President of IT at DHL Supply Chain, the world's largest contract logistics provider. As Vice President of IT, Jason leads enterprise technology strategy and execution and focuses on how applying AI, automation and advanced analytics can optimize logistics. With a background in mechanical engineering from Princeton University and experience as a consultant for PwC and Deloitte, Jason brings us a unique perspective into how AI and digitization can reshape the logistics space. Jason, welcome to the podcast. 

  Jason Pawlowski (00:58): 

  Hi, Melissa. Thanks for having me. It's great to be here. 

  Melissa Harrison (01:01): 

  Well, I talked a little bit about your story, but I would love to hear your background spanning engineering, big four consulting and now leading IT for DHL Supply Chain. What initially drew you into this complex intersection of where supply chain meets technology? 

  Jason Pawlowski (01:18): 

  Sure. Yeah. I studied engineering because I've always been passionate about problem solving. And growing up in Detroit, I thought that would lead me to a career in the auto industry. But when I started in consulting, I found out really how rewarding and exciting it can be to use technology to solve business problems for Fortune 500 companies. And when I came to DHL over 20 years ago, I found that it's just as interesting to use that technology to solve complex logistics challenges with our clients. And with DHL, we not only get to work with those top technology companies, but also get to do that on a global scale, which makes the work even more impactful and fun actually. 

  Melissa Harrison (01:59): 

  For all of our listeners who are Detroit Lions fans, I'm sure Jason will be happy to talk about some football with you at another time. 

  Jason Pawlowski (02:06): 

  Happy to do that. 

  Melissa Harrison (02:07): 

  I love it. So speaking of familiar names, DHL is pretty familiar to many, but the supply chain side of the business may not be the first thing that comes to mind for our listeners. What do you think one of the biggest misconceptions people have about what a logistics company like DHL does, especially in the consumer tech space? 

  Jason Pawlowski (02:27): 

  Yeah. I remember several years ago, I was arriving back in the US, going through immigration at the airport, and the agent said to me, "DHL, I didn't realize you were still in business in the US." And I get it. When many people think of logistics, they think of those UPS or FedEx trucks. And since DHL doesn't do domestic parcel delivery in the US, our trucks are more scarce here. But yeah, there's much more to logistics, is it doesn't get as much visibility really. So warehousing, transportation, value added services. So in fact, DHL is the largest contract logistics company, not just in the US, but in the world. We have over 600,000 employees. We operate in 220 countries. And when it comes to contract logistics, we have almost double the market share of our next biggest competitor. And specifically speaking of how we support technology customers in North America, several of the biggest brands in consumer electronics that you're going to see at CES are our customers. 

  (03:25): 

  We bridge the consumers to the electronics and are proud to be bringing this technology to people quite literally. And it's not just the work we do with tech customers that has us interested in CES. We're also industry leaders when it comes to the use of technology and innovation in the supply chain space. So we're consistently ranked at the top of the Gartner Magic Quadrant among 3PLs for completeness of vision and ability to execute. And we have a strong track record of collaborating with tech leaders to create and bring the latest advancements to our warehouses. You may have seen that with our work with Boston Dynamics, Locus and AI providers like HappyRobot. And when it comes to those delivery trucks, once you get outside the US to Asia, Europe or LATAM, we're also a market leader in that space. So in those regions, you'll see plenty of those yellow delivery vans bringing new tech devices directly to customers. 

  Melissa Harrison (04:21): 

  I can testify that you are telling the truth because I have been on the road to CES this fall in other countries and I have definitely seen them. Well, I'm excited for us to broaden this conversation and to help our listeners better understand just the breadth and depth of what DHL does. And so I want to dig in a little bit into the nuts and bolts around digitalization and adopting new tools. I mean, you've really been a leader in the industry. We talked a little bit about solving operational pain points, right? That's where this technology really comes into play. What do you think is the biggest barrier to successful digital transformation when you're working with your tech clients? 

  Jason Pawlowski (05:00): 

  Yeah, it's a great question, and it's a discussion we have often with our clients. And at DHL, we like to say that innovation that doesn't scale is just a nice idea. And so what prevents many of our customers from scaling those innovation and digital solutions? Well, the quick answer is chasing shiny things. So sometimes we'll see this drive to deploy robots or AI just for the sake of deploying the tech without knowing if it's actually a fit. And from our experience, that rarely ends well. So what does work is using a pragmatic process. So in the same way that our warehouses don't steal the spotlight, they're operationally driven, we take that same approach with implementing tech. So we start with a solid foundation. We look at our business processes and we fix any that are broken. Then we digitize those processes that are really valuable to the business. 

  (05:52): 

  Then we look at the data, so making sure it's clean and trustworthy, because you can't get to trustworthy AI without trustworthy data. And when it comes to applying these solutions, we want to focus on the ones that are solving real problems. So we start with a pain point and we use empathy, design thinking and analysis to really understand the business challenges. And if AI is the right tool, great, but if it's not, we move on. And change management really is everything. So even the best tech fails if people aren't ready. So stakeholder management, communication plans, training and education, that focus on adoption really matters. So I'll give you a real example. Years ago, we recognized that out of all the activities in our warehouse, our associates spent the most labor hours on picking. So we set out to make that easier on them. So part of that was identifying robotics that not only made them more efficient, but also were easy to adopt. So we've seen the results. We have about 8,000 robots deployed in our warehouses globally. 

  Melissa Harrison (06:55): 

  Wow, that's incredible. 

  Jason Pawlowski (06:56): 

  Yeah. Yeah. And many of them are doing just that. So they're improving and optimizing our ability to pick. And we found that really if you want scalable solutions that deliver real value, don't just chase tech for the sake of tech. 

  Melissa Harrison (07:10): 

  Well, you mentioned both digital solutions and AI, of course, which is everywhere at CES. I'd like to just talk with you a little bit about digitalization really, these digital solutions. AI is the latest frontier in that endeavor. How are you approaching AI? And then you also mentioned just how important it is to hit every layer of the ecosystem in which you're working of change management, et cetera. What's the task of implementing it in 220 countries? 

  Jason Pawlowski (07:40): 

  Yeah, no, exactly. And we've taken a similar approach to AI as we have for all of our innovations, and that's deployed through our accelerated digitalization program. And because of that, our journey didn't start with GenAI. So it started years ago with the foundational work that rarely gets a spotlight, like streamlining processes, standardizing operations and deploying scalable IT solutions that actually stick. So how we built up to that and getting to successful AI, we started with data analytics and insights. So everyone has data. I think many of us have seen that stat that about 1% of generated data is ever analyzed or used and data really only has its value once it's made trustworthy and it's put into the hands of decision makers. 

  (08:25): 

  So that's where we started. We got that clean and trustworthy data and operational and performance dashboards and put it in the hands of our leads. Once we had that clean data foundation, then we started deploying more advanced solutions like machine learning to automate discrepant receiving, for example. So when we would receive a used electronic device back from the field, if we needed an answer from the customer on how to receive it, we used to follow this very labor-intensive back and forth process. Now we use machine learning to predict the answer, and it's performing at a very high rate. So that saves us days in the process and our customers see significant cost avoidance. 

  (09:03): 

  Another great example for us is digital twins. So we've used our network data for tech customers to model what if scenarios. So what if we move this warehouse location? What would it do to your transport costs and ability to deliver on time to customers? So it's that pragmatic approach that's led us to be a data-driven organization, so we're ready for the next big thing. And once Gen AI hit the market, for example, we used our approach to quickly deploy solutions that are now in use. And in each of those cases, really, we're using data and AI to enable our people to be more efficient, free them up there for their time to focus on higher value work. 

  Melissa Harrison (09:42): 

  I mean, I think what's so important about what you just said is you started back at the beginning of investing in the building blocks that have set you up for success today with the advanced technologies that you're now implementing. I will tell you, I see this all the time. The pressure on consumer tech companies for both speed and personalization is so intense right now. How is the work that you're doing directly translating into a better, faster experience for consumers? 

  Jason Pawlowski (10:09): 

  Yeah, and you're right. And digitalization is that unsung hero to the journey that your device takes from the moment you click the order button until it's delivered to your door. So it starts with the basics, like digital transfer of orders from the manufacturer to a logistics company like DHL, but behind the scenes is where that digital magic really happens. We have technology that helps plan and optimize the work of our teams in the warehouse. And we have a symphony of robotics and automation that expedite the handling of your device from the shelf to the outbound dock. Then we have our tech ecosystem that enables visibility so you know exactly when that device is going to arrive. It's digitalization that enables that smooth orchestration behind the scenes. So as a consumer or business, you can focus on enjoying your new device. 

  Melissa Harrison (10:56): 

  I love the idea of a symphony. I can see it all just taking place together in a harmonious way. But you mentioned, I think you said 8,000 robots? 

  Jason Pawlowski (11:06): 

  Hm-hmm. That's right. 

  Melissa Harrison (11:07): 

  Many of our listeners, when they hear 8,000 robots, autonomous warehouse robots, et cetera, it sounds like the future. It sounds futuristic, but it's not. It's actually here now. And we often get asked when did AI become popular at CES? And it's like, well, AI has been part of CES for many, many years. I would love to know from your perspective, what do you think the most significant improvement you've seen a customer achieve by deploying robotics or AIs in their operations? 

  Jason Pawlowski (11:39): 

  Yeah, it's funny. You mentioned the futuristic part. And it is interesting because it wasn't too long ago that automation involved large scale machines that were fixed in place or robotics that had to be behind cages away from people. But now when you come into many of our warehouses, you'll see those autonomous robots seamlessly mingling and engaging with our associates. And that flexibility is really what delivers one of the biggest advantages for our customers, the ability to quickly scale up and down. So when we approach peak season like heading into Black Friday, we can quickly deploy additional bots to our facilities. And these new generation of autonomous bots, they can map a warehouse and be ready to use at a new site within hours. And furthermore, the interface is very intuitive. So it's like using an iPad. So we can quickly onboard new associates and have them fully using those bots within hours. 

  Melissa Harrison (12:31): 

  Wow. 

  Jason Pawlowski (12:32): 

  Yeah. And that flexibility, and that's really what gives us that scalability. And it's a huge advantage for our tech customers who need to meet peak season at product launch or before the holidays, but then ramp back down afterwards. 

  Melissa Harrison (12:45): 

  Well, on behalf of everyone like myself who's shopping on Black Friday and Cyber Monday, thank you so much for ramping up for us. You mentioned just, I'm thinking again about the analogy of the harmonious symphony of humans and robots together and that you're applying AI and automation and humans very pragmatically. How do you see AI and robots enhancing human capabilities and performance in the workplace? 

  Jason Pawlowski (13:13): 

  No, and that really is the great thing about this tech is that it is improving the employee experience for our teams. So in the warehouse, those autonomous bots, they're doing the strenuous physical tasks that are not really enjoyable. So traveling long distances in the warehouse or moving heavy objects or unloading a hot trailer in the summer. And AI is having a similar impact on our white collar teams. So we have GenAI based tools that do the tough admin work on an RFP, for example, so our teams can focus on building the best solutions for our customers. Another example is our use of machine learning to improve inventory counts. So we use that AI to predict which locations in our warehouse have the greatest potential for inventory issues to focus our efforts there. That reduces the time needed to count inventory and improves our results. And in all those cases, we're leveraging the technology to improve the employee experience. 

  Melissa Harrison (14:09): 

  So I'm going to put you on the spot and ask you, this is like asking someone to pick their favorite child. What do you think is the single most valuable function AI is performing in the supply chain right now? 

  Jason Pawlowski (14:21): 

  Yeah. Our people are our most valuable asset. And because of that, I think what I'll go with is one of the best uses of our AI is for us in keeping our team members onboard and happy. So we're using machine learning to predict which team members may be at risk of leaving. And we use that analysis to drive engagement between the supervisors and those team members. By doing this, we've improved our employee retention rates, and it's one of the many factors leading us to being voted a great place to work year after year, and happy employees lead to happy customers. 

  Melissa Harrison (14:54): 

  That's awesome. So while we're talking about AI, I want to drill down just a little bit deeper into agentic AI. This is something that I think a lot of folks are thinking about going into CES and how it's going to show up there. This is the idea of systems making decisions on their own. Where are you seeing this level of AI autonomy emerge in logistics? And I guess how do you build trust in a system that makes independent high stakes choices? 

  Jason Pawlowski (15:21): 

  Yeah. I remember at our last CES in January, I heard agentic AI at just about every presentation I walked into. It was. It was everywhere. And it's amazing how quickly this has come on the scene. Now we've found agentic AI to be another success story of human bot collaboration, like the cobots I was talking about in the warehouse. And we're approaching a genetic AI like other AI, starting with tasks that are painful for our team members, but a great fit for the agents. So these also happen to be lower stakes decisions, which is helping us build that trust in the tech before advancing to those high stakes decisions you mentioned. So for example, we used to spend days calling customers to schedule delivery appointments. 

  (16:02): 

  Now with the use of AI agents, that work can be done in hours. So as a consumer, you're getting that appliance you ordered days earlier. Yeah. Similarly, for urgent orders. So we used to have our facilities call 24/7 to make sure that those orders could be delivered. Now we're using bots to make those calls. And these calls, they're all tasks that are critical to our customers, but not activities that make the best use of our team members' times. So using AI in those right situations makes the most of our resources, times, and skills, and it frees up our associates to spend their time on more valuable activities. And so our employees end up being more satisfied with their work and our customers are happy. So it's a win-win. 

  Melissa Harrison (16:42): 

  That's great. You mentioned CES and talking about agentic AI, CS really is a look to the future. And so I love to ask our guests, based on your experience and what you're seeing, let's pretend it's 2030 and we're talking again. Where will AI powered logistics be and what might surprise our listeners? 

  Jason Pawlowski (17:05): 

  Yeah. We talked about agentic AI and how it's coming on fast in the industry. So many of our solution providers, they're all building agents into their offerings. I think what's going to be very interesting in the future is if these agents can start collaborating across platforms, so bots working with bots, you could say. So that would be orchestration on a whole new level and scale, but will require collaboration between different software providers. But if they can make that happen, that would be another case of innovation that benefits people. So it would remove the arduous and undesirable tasks to free them up for higher value work and better opportunities. 

  Melissa Harrison (17:42): 

  So, Jason, before I let you get back to your day job, I would love to know two things. One, how can folks connect with you and DHL at CES? And then also before you go, I want to know what you're most looking forward to at CES 2026. 

  Jason Pawlowski (17:57): 

  Yeah. And hopefully you've heard how passionate I am on these topics. So I'd really be happy to connect and talk further about this or the Lions, whichever you choose. 

  Melissa Harrison (18:05): 

  I love that. I hope you have good news for the Lions by the time we see you in January. 

  Jason Pawlowski (18:08): 

  Yes, I do too. I hope they're still playing. Yes. But yes, you could reach out via LinkedIn or in person at CES. So we're hosting the CTA member party. I hope to see many people there. And as far as looking forward to it, I mentioned hearing a lot about agentic AI last CES, and that was when it was just the merging on the scene. So I'm really excited again this time to see the technologies on the horizon that could have an impact on the supply chain and eventually be implemented to better serve our customers and teams. But I also want to see what our customer's latest innovations are and get a sense for how we can support their growth and evolution. 

  Melissa Harrison (18:44): 

  Jason, thank you so much for joining us today. I have learned so much, and I'm sure our listeners will as well. And thank you all for listening. That's our show for now, but there's always more tech to talk about. Be sure to follow, subscribe, comment, and whatever else you need to do to keep those algorithms happy. CES will also host conference programming to continue this conversation on building a sustainable supply chain, safeguarding the supply chain, and so much more. You can get even more CES and prepare for Las Vegas at ces.tech. That's CES.T-E-C-H. Our show is produced by Nicole Vidovich with help from Paige Morris and Doug Weinbaum, recorded by Andrew Linn and edited by Third Spoon. I'm Melissa Harrison on this special Inside Innovation episode of CES Tech Talk.