C-Suite Perspectives On AI: Mario Veraldo Of MTM Logix On Where to Use AI and Where to Rely Only on Humans
An Interview With Kieran Powell
Training and Adaptation: AI systems require extensive data to learn and adapt but can’t easily adjust to sudden, unanticipated market changes or anomalies. On the other hand, humans can quickly adapt to new information or environmental shifts.
As artificial intelligence (AI) continues to advance and integrate into various aspects of business, decision-makers at the highest levels face the complex task of determining where AI can be most effectively utilized and where the human touch remains irreplaceable. This series explores the nuanced decisions made by C-Suite executives regarding implementing AI in their operations. As part of this series, we had the pleasure of interviewing Mario Veraldo.
Mario Veraldo, born in Santos, Brazil, in 1977, currently aged 47, is a seasoned executive with an extensive 29-year career in international trade and global logistics. As a co-founder and CEO of MTM Logix Inc., Mario has spearheaded the company to achieve remarkable annual revenue growth, reaching USD 6,100,000 in 2023 from just USD 180,000 in its inaugural year of 2021.
Mario’s passion for optimizing supply chains to save time and money and reduce CO2 emissions is evident through his work at MTM Logix Inc., where he focuses on making operations transparent and manageable with customizable, automated systems. This dedication is rooted in his belief in the transformative power of digital control towers, leading to the development of what is termed the Supply Chain Operating System. This system is designed to augment professionals with technology, aiming to create the most efficient supply chain for each customer.
Before founding MTM Logix, Mario held several executive roles that contributed to his vast field experience. As CEO of Middle America for Maersk Line Mexico, he achieved a 30% business growth over three years, highlighted by a record net promoter score and recognition as the 7th Best Company to Work for in Mexico in 2018.
His earlier roles include Cluster Sales Manager for Maersk Line Brazil and Cluster Trade & Marketing Manager for Maersk Line Mexico, where he demonstrated his ability to lead and innovate in challenging market conditions. Mario’s educational background includes a Bachelor of Law from Unisantos Brazil and participation in Copenhagen’s IMD Maersk Management Program. He is also a Master Black Belt in Lean and Six Sigma, underscoring his commitment to process excellence and continuous improvement.
Mario has been motivated by a passion for finding customer solutions throughout his career, leading him to co-found MTM Logix with two partners. The company’s founding principle revolves around reinventing global supply chains and creating self-regulating ecosystems, with the ultimate goal of enhancing efficiency and sustainability in the logistics sector. Mario’s leadership at MTM Logix and his visionary approach to supply chain management have positioned him as a thought leader and innovator in the industry, making significant strides toward the future of global logistics.
Thank you so much for your time! I know that you are a very busy person. Our readers would love to “get to know you” a bit better. Can you tell us a bit about your ‘backstory’ and how you got started?
I grew up in Brazil, and I love swimming and Boy Scouts. At age 17, I went on an exchange student program to Thailand. The year was 1994, and things were very different than today. There was no internet, and phone calls were incredibly expensive. Can you imagine that a one-minute call between Thailand and Brazil would cost you almost USD 100?
I come from a middle-class family, and after returning to Brazil, I wanted to earn a living immediately. So, at age 18, I joined Maersk in Brazil as an office boy. I was the 7th employee in the office. It was a fantastic time to join the company as it expanded massively, and opportunities abounded. I am incredibly grateful for the chance to be in a company like Maersk and how it enabled me to grow.
It has been said that our mistakes can be our greatest teachers. Can you share a story about the funniest mistake you made when you were first starting? Can you tell us what lesson you learned from that?
When I first started, I had to type many documents daily. I had copy information from documents faxed in to our electronic system. One day, very late, I was alone in the office and pressed the wrong F-key, and instead of saving a large document, I deleted it. It was very late, and my solution was to remove that F-key from my keyboard as a reminder.
I never made that same mistake again. The easy solution was the easiest one.
Are you working on any exciting new projects now? How do you think that will help people?
For three years now, I have been CEO of MTM Logix. This company was created after my partner, and COO realized that the knowledge we acquired over many years could be used to create the most efficient supply chain for each of our customers. It is a massive undertaking, but one that excites us because it could save time, money, and CO2 emissions for our customers.
Thank you for that. Let’s now shift to the central focus of our discussion. In your experience, what have been the most challenging aspects of integrating AI into your business operations, and how have you balanced these with the need to preserve human-centric roles?
Data availability. Today, there is a false feeling that AI can recreate human-centric roles. AI can outmaneuver humans in several aspects, especially those associated with data and logic. However, not all the elements of human-centric roles go through readily available data, and not all creative aspects of human-centric roles will have all the data. In MTM Logix, AI significantly augments people’s creativity and problem-solving skills, but we do not expect humans to be replaced.
Can you share a specific instance where AI initially seemed like the optimal solution but ultimately proved less effective than human intervention? What did this experience teach you about the limitations of AI in your field?
We will all lose if the AI debate is about what is best — human or AI. Our view in MTM Logix is that AI is an extension of our teams. We can augment every team member by giving them additional AI-powered tools. Imagine that instead of managing 100 shipments, our team members could manage 400 shipments in less time. There will always be a threshold of problems that have not been configured yet in the engines, requiring a human to look at them, make a decision, and then, based on those, train the machines for the future.
How do you navigate the ethical implications of implementing AI in your company, especially concerning potential job displacement and ensuring ethical AI usage?
The answer to job displacement is not avoiding AI. It is upskilling people on it. AI can replace many repetitive activities, allowing people to focus on more value-adding ones. Also, our customers are humans, not AI. Hence, the need for understanding will require other humans to interpret and create the products. Can AI help? Absolutely. Can AI do it all by itself? No, and for a long, long time.
Could you describe a successful instance in your company where AI and human skills were synergistically combined to achieve a result that neither could have accomplished alone?
Several ChatGPT functionalities augment our teams every day. Mostly, this has to do with replacing advanced systems to provide simple math for situations that would otherwise require more complex data handling. It sounds simplistic and it is just the tip of the iceberg. In the coming weeks, we will have much more time to deploy large datasets and optimize the parameters we are considering for optimizing our customer’s operations.
Based on your experience and success, what are the “5 Things To Keep in Mind When Deciding Where to Use AI and Where to Rely Only on Humans, and Why?” How have these 5 things impacted your work or your career?
- The complexity of the Task: AI excels in handling tasks that involve large-scale data analysis or repetitive processes, whereas humans are better at managing tasks requiring nuanced judgment or creative problem-solving. For instance, at MTM Logix, we use AI for inventory management, which involves analyzing vast datasets — cumbersome tasks prone to error if done manually.
- Ethical Considerations and Decision-Making: Human oversight is essential in scenarios involving ethical decisions or those that directly impact human lives. We learned this firsthand when implementing automated systems for employee performance evaluations.
- Interaction with Stakeholders: AI can streamline communication via chatbots, such as in customer service. However, human interaction is preferable for complex or sensitive issues.
- Innovation and Strategy Development: While AI can provide data-driven insights, human intuition is crucial for strategy development and innovation. At one point, our AI models suggested cutting down on certain unprofitable logistical routes. Upon human review, we realized these routes were essential for long-term strategic partnerships and market presence. Maintaining these routes proved beneficial when market dynamics changed favorably.
- Training and Adaptation: AI systems require extensive data to learn and adapt but can’t easily adjust to sudden, unanticipated market changes or anomalies. On the other hand, humans can quickly adapt to new information or environmental shifts.
Looking towards the future, in which areas of your business do you foresee AI making the most significant impact, and conversely, in which areas do you believe a human touch will remain indispensable?
I call this the white-collar revolution. The most impacted professionals will not be the blue-collar but the white-collar, who cannot upskill and add AI components to their work lives. We will still need humans in vast areas of our lives, especially around agriculture, construction, and, most importantly, anywhere where creative work is needed and valued.
You are a person of great influence. If you could start a movement that would bring the most amount of good to the most amount of people, what would that be? You never know what your idea can trigger. 🙂
If I could start a movement, it would make global supply chains more efficient, aiming to save up to 20% of resources used. This would help reduce waste and costs, making food and goods cheaper and more accessible. Using technologies like AI to predict and manage supply needs and share resources among companies, we can deliver products faster and more efficiently. For example, if we streamline how food is transported from farms to stores, we could reduce spoilage and make fresh produce more available and affordable to larger populations.
How can our readers further follow your work online?
The best place is Linkedin and following myself (https://www.linkedin.com/in/marioveraldo/) and MTM Logix (https://www.linkedin.com/company/67153500/admin/feed/posts/)
This was very inspiring. Thank you so much for joining us!
About The Interviewer: Kieran Powell is the EVP of Channel V Media a New York City Public Relations agency with a global network of agency partners in over 30 countries. Kieran has advised more than 150 companies in the Technology, B2B, Retail and Financial sectors. Prior to taking over business operations at Channel V Media, Kieran held roles at Merrill Lynch, PwC and Ernst & Young. Get in touch with Kieran to discuss how marketing and public relations can be leveraged to achieve concrete business goals.
C-Suite Perspectives On AI: Mario Veraldo Of MTM Logix On Where to Use AI and Where to Rely Only on… was originally published in Authority Magazine on Medium, where people are continuing the conversation by highlighting and responding to this story.