How Kargo’s AI is Solving Critical Supply Chain Challenges

Supply chain efficiency can make or break a business in today's landscape. With the rise of new technology and innovative solutions more crucial than ever. Among these new market offerings is Kargo, a company at the forefront of applying AI to the often-overlooked realm of loading dock operations.

Sam Lurye, Founder and CEO of Kargo, spoke to Procurement Magazine, exploring how its AI is transforming the landscape of supply chain management.

Please introduce yourself and your role

I'm Sam Lurye, the Founder and CEO of Kargo. I founded Kargo in 2019 to enhance supply chains by leveraging AI to bridge the gap between the physical realities and digital expectations of logistics.

Based at our headquarters in San Francisco, my role is to drive our vision forward, empowering our partners to set new standards for efficiency, accuracy, and visibility across industries.

Before Kargo, I worked as a researcher at the Neural Prosthetic Systems Lab at Stanford University, where I contributed to the development of brain-computer interfaces.

Could you tell us a little bit about Kargo

Kargo is the leading AI solution for the loading dock, automating processes that are critical to shipping and receiving, inventory management and compliance. We work with a broad range of third-party logistics providers (3PLs), manufacturers and retailers, unlocking next-level efficiency, accuracy, and visibility.

The Kargo System combines hardware — the Kargo Towers, installed on either side of the loading dock, or the Kargo Lift, mounted on forklifts — with our software, the Kargo Platform. Both Kargo Towers and Kargo Lift capture images and videos of freight and extract information such as label data and the condition of the freight, automating label scanning and quality inspections as freight is loaded or unloaded.

In real time, Kargo verifies shipments against orders to ensure accuracy. If there's any discrepancy, such as an overage, shortage, damage, or incorrect product, Kargo immediately notifies the operator, allowing them to address the issue in real time.

By using computer vision to automate critical steps, including scanning, quality inspections and shipment verification, Kargo drastically reduces manual effort while enhancing shipping accuracy and inventory integrity.

All the data and visuals Kargo captures are instantly available on the Kargo Platform and can be integrated across existing systems like WMS and ERP. This allows users to investigate issues, communicate with their teams, and review supplier performance effortlessly.

Kargo brings automation and intelligence to the loading dock, empowering companies to transform their supply chains through AI.

What would you say is the number one issue people raise when they come to you for help with their supply chain?

All the issues we hear from companies can be traced back to bad data. Inaccurate shipment information, discrepancies in inventory levels, and the time and effort (labour) it takes to manually verify data creates inefficiencies and erodes trust between teams and partners. As supply chains become more complex and the volume of data increases, the cost of bad data continues to rise.

Kargo is a prime example of how AI can ensure that the data used by procurement teams is both current and accurate. Using computer vision, Kargo automatically captures data from every pallet that passes through the loading dock, including label information, freight condition and compliance issues.

By automating these critical steps, AI solutions like Kargo eliminate manual effort and the potential for human error, enhancing data accuracy and operational efficiency.

The key is integrating new technologies with your existing management framework to allow for the seamless flow of 'good data' through your systems. This leads to improved inventory integrity and enables better, data-driven decision-making across supply chains.

How is AI helping when it comes to procurement teams getting a hold of their suppliers and supplier management?

AI is fundamentally reshaping how procurement teams manage suppliers by gathering more data on suppliers at a rate that wasn't previously possible. With AI, procurement teams can not only capture data more efficiently but also analyse supplier performance metrics at scale.

This allows teams to quickly assess supplier performance and identify issues before they become critical.

For example, Kargo inspects every pallet, rather than relying on sample audits, providing procurement teams with a broader and more accurate picture—without any additional effort.

The data captured by Kargo also enhances vendor scorecarding by enabling procurement teams to track partner performance against KPIs and compliance standards.

On the Kargo Platform, teams can monitor and assess vendor performance, analyse exceptions, and hold suppliers accountable using data and visual proof.

This ensures procurement teams have the insights needed to optimise supplier relationships and make data-driven decisions about ongoing partnerships.

At Kargo, we've seen that visual evidence helps maintain strong relationships with suppliers. Instead of a "he said/she said" situation, providing visual proof of damage or other concerns allows everyone to speak the same language, leading to real change.

How is AI helping to build more resilience for procurement and supply chain teams?

AI builds resilience by mitigating risks and improving decision-making through accurate, real time data. One of the biggest challenges in today's supply chains is inaccurate or outdated inventory data, which can lead to stockouts, over-ordering, or delayed responses to disruptions.

AI helps solve this by providing real-time, accurate insights into inventory levels, allowing procurement teams to make more informed decisions.

For example, by capturing inventory data at the dock door and updating existing inventory management systems, Kargo enables teams to realise inventory faster than manual processes. With Kargo, companies see a 30-50% improvement in inventory integrity.

By having real-time visibility into inventory, teams can pivot quickly, avoiding costly disruptions and maintaining continuity in the supply chain.

How can companies use AI to ensure best practices in the supply chain?

AI-driven automation is quickly becoming a best practice in supply chain management because it eliminates manual processes, reduces errors, and increases efficiency.

In procurement, people typically think of AI as a tool for automating digital tasks, such as reviewing contracts, analysing spend data, or improving supplier negotiations.

However, the role of AI in automating physical tasks that impact procurement is often overlooked, despite the significant advantages it offers.

Manual tasks like label scanning, shipment verification and quality checks are often inefficient and prone to human error. By automating these physical tasks with solutions like Kargo, companies can drastically reduce the time and labour involved while improving the accuracy of data that feeds into procurement decisions.

The impact on procurement is clear: better data leads to better decisions, more efficient operations, and stronger supplier relationships.

Make sure you check out the latest edition of Procurement Magazine and also sign up to our global conference series - Procurement & Supply Chain 2025

Procurement Magazine is a BizClik brand