Technological provider, INFORM shares its expertise and how companies should understand how to use data and tech before implementing AI
By Jennifer Jensen, BCMI Media and PR Specialist
As in every business sector, the ready mix concrete industry has begun adopting Artificial Intelligence tools in order to meet today’s challenges and tomorrow’s expectations. The industry is facing growth and changes thanks in part to technological innovations. So how can producers use these new technologies to address challenges, streamline operations and improve efficiency?
BCMI, developer of cloud-native dispatch, performance analytics, interactive communication tools and AI-assisted solutions, is diving deeper into this topic and sharing the expertise of a technology partner, INFORM. Thomas Bergmans, Senior Vice President, Logistics Division for INFORM shares insights and advice for producers looking to implement AI technology into their business practices.
With AI labels being increasingly used as a marketing gimmick, Bergmans advises producers to evaluate whether an AI solution truly delivers meaningful economic benefits or if it’s just “nice packaging.”
“Keep the formula for failure in mind: Old process plus new technology equals expensive old process,” Bergmans says. “Implementing AI is more about understanding how to use data and technology so that it shifts every layer of the business. Fully understanding the impact of this process on business and people helps to avoid the pitfalls that so many repeatedly fall into.”
Q: What opportunities does AI bring to the equation in the industry?
Bergmans: As far as INFORM is concerned, significant bottom-line/EBIT improvements. Even though AI technologies have attracted a lot of attention from the public lately, digital decision-making powered by algorithms isn’t new to our industry. We at INFORM have been providing logistics planning software to many aggregates and ready-mix producers for 30-plus years. They all have been using our algorithms, real-time information and automated decision-making to manage and optimize their logistics ever since with amazing results.
Q: What are some industry challenges that can be solved with AI?
Bergmans: AI reduces costs, lowers carbon emissions, enhances customer service, enables new pricing and business models, and optimizes your distribution network. It enables dispatchers and planners to do incredibly complex, time-critical calculations with ease – moving more payloads with fewer trucks each day. In an era of a shrinking and increasingly demanding workforce, AI-powered systems help producers mitigate these challenges.
Q: Are there any specific AI technologies that producers are asking your company for?
Bergmans: At INFORM, we see two types of producers. The first group comes prepared. They’ve identified their logistics challenges and understand how advanced algorithms and AI can help. They ask the right questions, listen to the answers, and typically execute highly successful projects, without getting lost in the “nuts and bolts.”
The second group has heard the buzz about AI and feels they need to implement something. Their enthusiasm is great, but they sometimes focus on the wrong issues or pursue projects that won’t effectively solve their challenges. These companies can still succeed, but their journey is longer compared to the first group. Fortunately, more businesses are realizing that AI in logistics isn’t just a luxury — it’s a necessity. As a result, more are making the shift toward a strategic, informed approach.
Q: How can producers distinguish between technologies that are tapping into AI in new and innovative ways and ones that are promising more than they can deliver?
Bergmans: Even though Large Language Models (LLMs) — with ChatGPT as the most popular representative — have attracted a lot of attention from the public lately, a whole range of technologies is now currently summarized under the term “AI.” INFORM has always been building algorithms and software to optimize business processes using artificial intelligence and related technology, with strong roots in the advanced mathematics of operations research (OR). Based on the specific use case, we employ appropriate methodologies according to the task at hand, including search and optimization techniques and heuristics, supervised and unsupervised learning, or combinations of those. We call this “customer-centric strategy” in our Hybrid AI approach.
Q: How do you see the role of the workforce evolving as AI and automated tools become more prevalent?
Bergmans: Besides all the substantial costs benefits in logistics, there’s something on top that bulk material producers will get for free. By applying our AI and data-driven transport planning software, dispatchers are free to focus on higher-level tasks that no robot or algorithm can replace, enhancing customer service. What’s more, our AI-powered solution will give them the right instruments at hand that allow them to play the full scale of digital transformation. For example, an automated Material Replenishment Process (MRP) for ready-mix producers or dynamic pricing schemes.
Q: How is your company implementing AI?
Bergmans: We see ourselves as pioneers for sustainable, value creation through digital processes with decision intelligence. Our commitment is to make organizations resilient, sustainable and positioned for success. Our AI solutions empower people to take action. They are designed to support people at work and improve decision-making in companies. This comes into play wherever sufficiently complex processes, possibly under time pressure, require far-reaching operational decisions. We can optimize or automate all these business processes using AI.
Q: What successes have you seen with the use of AI within the industry?
Bergmans: Producers using our AI-Powered Transport Planning software typically achieve a cut in logistics unit costs by up to 20%; an increase in loads/truck/day by up to 37%; and a reduction in empty mileage by up to 19%.
Best practices in our industry have also shown that fleets can be downsized by anything from 10% to 30%, while increasing customer service at the same time.
Moreover, when it comes to concrete mix designs, quality control and concrete monitoring (in transit or on-site), companies such as Giatec or AICrete, along with solutions like MIntelligent Feed have transformed our industry. These AI-driven innovations take concrete production to the next level.
Q: What do you think is the most exciting application of AI right now for concrete and bulk materials producers?
Bergmans: Customer service starts at the point of order taking. And what many do not realize, logistics costs are also generated at the point of order taking. There are many challenges in placing an order that satisfies the needs of your customers and the needs of your logistics team. And the costs of not perfecting these processes can be enormous. The order-taking view of our AI-powered software gives you a consolidated real-time view of the current order and transport planning situation. During the order taking process, it provides all necessary information to avoid an overbooking of resources. It is constantly being updated and allows your order takers to find a suitable delivery time for your customers and your available transport resources. Right now, human interaction is still required. However, without diving into details, this is about to change rapidly. Stay tuned for our updates.
What’s more, the consolidated real-time data of the current order and transport planning situation from our AI software provides the necessary input to implement new business models such as dynamic pricing.
Q: Where do you see AI technology in five years – and how will it specifically impact materials producers?
Bergmans: First of all, ChatGPT won’t deliver truck schedules. Not today, and not in five years’ time. But LLMs are changing the way we use AI systems like our transport planning software. For example, LLMs will aid communication between drivers and plant staff who may speak different languages. This is not just for text to text translation, but for speech to text and back to speech in another language. And LLMs will make the task of planner and dispatchers easier, especially for highly specialist tasks. Ultimately, we will see a much deeper integration between the different processes of our industry, with information flowing between dispatch, logistics, storage, production processes and even corporate strategy.
Q: What’s one thing you’d like people to know about AI, particularly people who might be wary of the technology?
Bergmans: A good tool improves the way you work. A great tool improves the way you think. AI is a tool that improves the way you work and think–provided you’re open to change. Its effectiveness depends on how it is designed, trained and used by humans. The best results come when people use AI thoughtfully, keeping its strengths and limitations in mind. Rather than fearing AI, it’s helpful to approach it with curiosity and a critical mindset. Understanding how it works, where it excels, and where it falls short empowers people to use it wisely—whether for work, education or everyday tasks.