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Artificial Intelligence - Prospective Backbone For Logistics Industry

AI helps in creating a platform and interface which makes management easier than ever, helping a business to grow in better ways.

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Every aspect of our life is getting transformed by technological advances in artificial intelligence and machine learning. Right from finishing our sentences through automated suggestions to drone-delivered packages, artificial intelligence (AI) has demonstrated its extreme innovative potential for helping to maximise efficiency and has deeply seeded itself into our society.

The emergence of modern-age technologies has also transformed the chaotic and fragmented logistics market. Artificial intelligence has brought with it innovations like autonomous vehicles, automated warehouses, predictive analytics, and smart roads. AI technology offers to automate and simplify numerous processes, thus helping companies save both time and money. 

In an exclusive conversation with BW, Arham Partap Jain, Founder & Chief Trucking Officer, Trucknetic said, “These modern technologies play a vital role in saving time, reducing costs, increasing productivity and accuracy with cognitive automation. AI also assists in automating various time-consuming processes and helps in demand forecasting. It helps to create a platform and interface which helps in logistics route optimization, which helps in reducing the costs of shipping, which further aids in generating more profits.”

Jain also explained how these technologies can additionally help the logistics players to completely transform warehousing operations in the form of collecting and analysing information or inventory processing.

Some of the AI Innovations for the Logistic Sector are as follows:-

Self-driving Vehicles

Artificial intelligence is profitable for logistics and transportation sector. Self-driving vehicles bring changes to the supply chain and helps to reduce expenses in logistics. Of course, most of us know about driverless cars but AI allows automating more vehicles. For example, such means of transport as trucks, lorry, or buses can also be automated in order to transport goods. Such kinds of autonomous vehicles can work alone or cooperate with a person. 

There are a lot of benefits that driverless technology can bring to logistics. For example, utilising autonomous vehicles, people get an opportunity to reduce fuel usage, optimise routes as well as avoid human mistakes.

Automated Warehouses

Intelligent automation and robotics are one of the most valuable features that artificial intelligence (AI) offers to the transportation sector. Artificial intelligence systems free warehouse workers from repetitive and perhaps dangerous tasks by automating the process and providing greater speed and precision.

Smart warehouses using artificial intelligence (AI) automation are more productive and can operate 24*7, which would be very expensive and hardly possible in the case of only human labor. 

Traffic Management

Another logistics problem that people face on a daily basis is traffic congestion. Artificial intelligence (AI) is now set to solve this issue too. Sensors and cameras placed in most of the regions collect ample amounts of traffic details. This data is then sent to the cloud, where analysis and traffic pattern revelation will be done with the help of big data analytics and an AI-powered system. Valuable insights like traffic predictions can be obtained from data processing. Drivers can be provided with important details like traffic predictions, accidents, or road blockages. Besides, Commuters can be notified about the shortest route to their destination, helping them travel without any hassles of traffic. This way, AI can be used to not only reduce unwanted traffic but also improve road safety and reduce wait times and can help in smooth logistic services.

Better Customer Experience

Just like in any industry where customer satisfaction is a priority, the logistics industry is no exception. The elements of customer service in the logistics sector include order fulfilment, fast delivery, quality products, etc. Artificial intelligence (AI) helps to improve customer service with smart chatbots and personalisation. Chatbots are available 24 hours a day, 7 days a week, which means that customers will not have to adjust to the standard business hours of the company and can send their inquiries whenever they want.

With the help of these modern-age technologies, customers can quickly get assistance on delivery requests or information on the shipping status of their packages. Accelerating responses and assistance to customer requests is the best way how artificial intelligence helps the logistics sector to improve its service.

Back-office Operations

Back office operations are crucial for the logistics and transportation sector. These new-age technologies allow employees to speed up their working processes. It also helps employees to improve their performance by increasing productivity and accuracy. The back-office operation automation helps companies with supply chains to save both time and money. With the implementation of AI, some categories of employees, such as accountants and human resources specialists, can be replaced. Accordingly, the probability of human error will be lower.

These new modern technologies aid in bringing truckloads of data, which the transportation industry has been capturing for years. Ages ago, trucking, rail and sea cargo were tracked by satellite via telematics. The sudden and rapid growth of digitisation and transformation is making more companies add artificial intelligence (AI) and machine learning (ML) to their supply chain in order to maximise their resources by reducing the time and money spent on tracking the goods to send a package from one place to another place.

Efficient Planning and Resource Management

For the growth of any business and not just the transportation sector, efficient planning and resource management are important. Artificial intelligence plays a vital role in efficient planning and resource management by helping industries to reduce cost and optimise the movement of commodities, which also improves the supply chain of the logistics and transportation sector in real-time.

Real-time Route Optimisation

Artificial intelligence plays an important role in real-time route optimisation which increases the efficiency of the delivery and thereby, helps in reducing the waste of resources. Many logistics and transportation companies have already been using a self-driving delivery system which has made it possible to deliver items at a much quicker pace and that too without the requirement of a human workforce. These modern technologies have always been helpful in freight management by helping in efficient logistic management by lowering shipping costs and improving the delivery process.

“Today, artificial intelligence (AI) helps the logistics players to provide an opportunity for different levels of optimisation in manufacturing, logistics, warehousing and last-mile delivery with the high set-up costs deterring early adoption in logistics. It also helps the consumers to have their goods delivered where and when they need them by using flexible courier services,” Jain adds. 

AI helps in creating a platform and interface which makes management easier than ever, helping a business to grow in better ways. As, these technologies (AI, ML) is becoming popular in logistics, more companies in the industry will implement the technology in their day-to-day operations. In fact, the market size for AI in the logistics and supply chain is expected to reach 12 billion dollars by 2027.