Artificial intelligence (AI) is a buzzword in the current scenario of logistics management. Its widespread implementation across different verticals is so apparent today. The exciting implementation of AI technologies by some e-commerce platforms to opt for automated warehouse solutions, last-time delivery drones by leading retail stores — all have augmented applications.
Simply, the logistics sector, with its widespread networks, is an ideal application area for artificial intelligence. Effective data analysis, for example, helps forecast future production and transport volumes, enabling the use of resources more efficiently. Now-a-days, tasks are therefore increasingly delegated to self-learning digital systems.
AI unlocks the true potential of logistics
Artificial intelligence helps businesses in collecting data, perform analysis, and automate the process via machine learning and natural learning processes. This new age modern technology can aid logistics and supply management system in shortening the process, increase the speed, automate the procedures, and deliver high-quality performance. Also, logistics companies receive the possibility to make clear predictions and optimize their performance using the power of artificial intelligence.
Usage of robotics can substitute workforce in logistics
AI in the logistics sector stands as a great benefit for the physical aspect of working. The growth in robotics technology, autonomous navigation, and artificial intelligence have fueled the growth of the mobile robotics industry in recent years, and it has the potential to effectively address many of the employment conditions that are currently posing a threat to the global logistics industry. Material handling, material selection, long-haul distribution, and last-mile delivery are just a few of the logistical tasks that can be automated using robotic workforce.
AI in logistics and supply chain management
With the help of artificial intelligence, warehouse management can also be optimised by accurately calculating the number of items that need to be moved on a certain date and the amount of equipment needed to handle the process effectively.
Also, with the help of latest technology, it is possible to spend less time establishing more detailed stock movement predictive analytics and increase the overall productivity of pick-and-pack processes. Logistic automation systems can also largely improve the speed and accuracy of the communication process. The elements are enabled to conduct a dialogue with each other embracing system monitoring and control, which ensures orderly warehouse management and provides the supply chains with contextual intelligence that allows making efficient and proper planning decisions based on the range of factors like the demand, possible transportation issues, and factory production planning.
AI in logistics promotes autonomous vehicles
The popularity of autonomous vehicles is rising with brisk speed. And one of the reasons for this is the contribution AI makes to outclass human driving capabilities. The new age technology allows the vehicle to perceive and predict the changes in its environment with the help of sensing technologies that perform together to produce a three-dimensional map of the vehicle’s environment including traffic signals and laws, interpreting road signs, identifying barriers and closures, etc.
AI also leads to the launch of self-driving vehicles that will help meet the supply chain’s demands. Furthermore, it will also help to lower the overall transportation costs. It will automate vehicles into making them driverless. Meanwhile, several companies have also started to implement this practice.
AI in logistics can increase customer loyalty and retention
AI is a relatively new experimental technology, yet it seems like it’s everywhere and ever-expanding. Implementing AI in customer service can also greatly reduce communication errors between customers and service personnel. With the introduction of this technology, AI customer service agents will have perfect knowledge of every possible issue a customer could tackle and hence, they will be able to promptly reply to customers which is relayed to them.
Also, the logistics data analysis can potentially take customer experience to the next level, delivering goods before they have even ordered them. Forecasting from logistical data services, analyzing browsing and purchase history, weather data, and social media chatters, companies can predict the next order a customer will make. One of the best examples is a voice-based service that was adopted by DHL Parcel in 2017. With this technology’s help, their customers could ask Amazon’s Alexa the shipment information about their parcels.
Al can positively affect back-office operations
The logistics sector relies heavily on back-office activities. Several back-office processes benefit greatly from AI’s increased efficiency and agility. AI can also handle a wide range of back-office duties. It aids businesses in keeping track of data reporting, organizing consumer data, preparing financial data, and developing proper schedules and as a result, the likelihood of human mistakes would be reduced.
AI helps in shipping and delivery
AI tracks road traffic and helps companies to reduce fuel consumption and improve the air quality and urban planning deliveries. On top, it reduces traffic, identifies the driver’s free time, makes parking trouble-free and many more. It also helps businesses to analyze existing routes by route optimization techniques using shortest path algorithms to identify the most feasible and efficient route for trucks to deliver the product, this will help to speed up the shipping process and substantially reduce shipping costs and ultimately enhance customer experience.
AI helps in to predict trends
Besides providing information on the current status of their stocks, AI help logistics dealers predict trends and plan accordingly for the future. In this case, automation works to identify the various needs and expectations that consumers have from a particular brand. When this data comes through, AI systems then pick up cues from the responses of the entire customer base to analyze their needs and transcribe them into more coherent forms.
This way, when the company is looking to launch something new or to introduce changes within their current products, they don’t have to blindly experiment with different schemes. Instead, they can confidently pick cues from the data they’ve received through AI interpretation of consumer expectations to introduce changes and additions that they’re certain will be met with a positive reaction.
In a nutshell, integrating your customer service with Artificial Intelligence tools can help the logistics sector to identify what their customers expect, what’s trending in the market, and what’s going to be an easy success on the shelves, so then they can accordingly pick the best stocks items for the next batch in the future.
Conclusion
AI has already left the cinema and become an ordinary part of our everyday lives and most businesses. Though the future of artificial intelligence in logistics is promising, and some logistic networks have already shifted to a proactive and predictive paradigm and logistic automation. And we certianly believe that the 21st century is the best time for “AI spring”.