Supply chain inefficiencies cost businesses millions every year, yet most solutions barely scratch the surface of this complex problem. Yet vertical AI, a targeted approach that’s transforming how companies handle logistics and operations, is now in full force. Shekar Natarajan, founder of Orchestro, has spent two decades at the crossroads of operations and technology, leading transformations for major enterprises including Fortune One companies. His team is now bringing domain-specific AI to tackle supply chain’s toughest challenges.
Transforming Supply Chains with Vertical AI
Most conversations about artificial intelligence focus on chatbots and content creation, but Shekar sees a different opportunity. “The first question on everyone’s mind is how is this really different from generative AI?” he explains. While general purpose AI excels at creating content and art, its applications in specific industries remain limited. The distinction becomes clear when you look at real business problems. “Generative AI primarily solves the general purpose consumption of technology. It’s about creating content, creating art, regurgitating essays,” Shekar notes. “Yes, it finds its application in industries, but at a very general level. Hence the word generative.”
The power of vertical AI comes from its laser focus on industry-specific challenges. Shekar’s team doesn’t just apply generic AI to supply chains – they start by extracting deep industry knowledge. “What we do is bring precision and relevance to the knowledge of logistics,” Shekar explains. Take shipping contracts as an example: “If you’re talking about a contract with UPS or FedEx, it’s about a 120-page document. There’s incentive tiers, discounts, rate tables, terms and conditions, and minimums that are guaranteed on every package.” These complex challenges require more than general AI models. They demand solutions built by people who understand the industry’s nuances. “That’s what we do first. We extract the knowledge of the industry. We have business and domain experts who bring relevancy to the knowledge of how things work.”
Solving Complex Logistics Challenges
Supply chain professionals spend most of their time putting out fires. “Eighty percent of supply chain activities are about firefighting,” Shekar points out. “There’s a truck delay someplace, a package is delayed, the dock never released the package that needed to be going on time, the product is misplaced in the warehouse.”
Orchestro tackles these challenges by mapping the activities performed across companies and fusing industry knowledge with business-specific needs. But they don’t stop at identifying problems. “That is just telling you have a fever and giving you Tylenol. We have to tell what specific medicine you need to take because we diagnose you specifically for the problem you have. That is vertical AI.”
Connecting the External Supply Chain
The supply chain extends far beyond any single company’s walls. “All activities in the supply chain are not really within the context of the business. They’re outside,” Shekar explains. “It’s a rented economy. You don’t have your own truck. You don’t have your own warehouse. You don’t fly your own planes.” This reality creates a unique challenge. Finding opportunities isn’t enough – you need to connect with external partners to capture value. “To drive business outcomes, you have to still connect to the external world, which is where our auto provisioning engine comes in. It connects to the external world so you can seamlessly transact without having to wait three to six months for every integration.”
Orchestro’s approach delivers tangible results for companies of all sizes. For shippers using the platform, Shekar’s team analyzes carrier performance and identifies opportunities to optimize. “We identify which carrier is better suited for every door in the United States. Then we make a recommendation to the shipper.” The savings can be substantial. “By switching carriers, you could save $100,000-$200,000. For a small shipper who spends $2 million, that’s significant money they can invest back in the brand or marketing activities.”
The system handles everything from recommendations to implementation, ensuring companies capture the full value. “If you’re ready to unlock the full potential of vertical AI for your business, let’s talk,” Shekar offers. “At Orchestro, we are not chasing trends. We are building a better tomorrow, a sustainable tomorrow, a system that really produces impact.”
Connect with Shekar Natarajan on LinkedIn to explore how vertical AI can transform your business.
