Brian Fugate on How AI & Data Are Redefining Supply Chains

Fugate has previously worked for Delta Airlines, Honeywell and John Deere. (Michael Woods)

Brian Fugate, 48, has been the chairman of the Supply Chain Management Department at the UA since 2016. He is also the associate dean of graduate programs and research.

Fugate earned a bachelor’s and an MBA from the University of Tennessee. He also has a doctorate in supply chain management from the university, which is in Knoxville.

What are the most critical challenges for the supply chain in these unstable times?

Risks keep rising. Every shipment faces delays from bottlenecks, rules or cyber threats. For firms like Walmart, J.B. Hunt or Tyson Foods, a minor issue on the Mississippi River or at Gulf ports affects Arkansas warehouses within hours. Efficiency alone is no longer enough. Companies must add targeted capacity buffers, use automation to reduce errors, and share data freely across partners. For example, artificial intelligence at Walmart warehouses or automated trucks at J.B. Hunt, ArcBest and others need accurate human input to work well. Clear data sharing among people and machines is key. Without that collaboration and teamwork, fixes will always fall short. Arkansas firms leading in data sharing will manage risks better than most.

What logistic technology on the horizon do you find most intriguing and why?

Generative AI-powered digital twins is one of the many technologies that interest me. Companies can now test supply chain networks in minutes rather than weeks. They feed real-time data into these models to see how tariffs, storms or trucking disruptions affect operations. Managers then make fast, confident decisions to keep shipments moving. This technology also supports new tools like driverless trucks running defined transport routes or drones delivering goods quickly to local neighborhoods. Beyond digital twins, supply chain automation that blends human skills with robotics and AI also fascinates me. Seeing how firms in Arkansas integrate warehouse workers, truck drivers and automated processes is remarkable and impacts productivity greatly.

How will tariffs affect supply chains?

Historically, customs brokers handled tariff compliance. Reports suggest about 70% of companies still use third parties for this. But now tariffs directly affect company profits. Executives must understand how duties on imports, such as tractors for trucking firms, affect budgets. Even small tariff hikes can shift warehouse locations by hundreds of miles. Smart companies plan ahead. They track duties closely and adjust routes or suppliers quickly. Tariffs now belong on the desks of company leaders, not just back offices. For Arkansas trucking companies and shippers, these careful decisions on tariffs can make the difference between profit and loss.