AI Is Revolutionizing Logistics And Supply Chain Management

Artificial intelligence is becoming increasingly explosive in terms of global logistics and supply chain management. A number of transportation executives believe these areas are likely to experience a more significant change. This means that continuous development in technologies such as artificial intelligence, machine learning and similar new technologies has the potential to cause disruptions and to promote innovations in these economic sectors.

Artificial intelligence is supplied with highly developed computer technologies that are very helpful when selecting large amounts of data from the logistics and supply chain. You can use such methods and get results based on your analysis that can trigger processes and complex functions.

Many companies are now benefiting from investments in artificial intelligence. According to John Watton, Senior Director, Enterprise Marketing, EMEA, at Adobe , 15% are already using AI, while another 31% plan to implement it this year. First and foremost, sales can be generated from the following areas: research and development, product innovation, supply chain and customer service.

How does artificial intelligence affect logistics? 

Predictive skills will increase.

AI can help improve the company’s efficiency in network planning and predictive demand. Using tools that help with capacity planning and accurate forecasting can help companies become more proactive. If they are aware of market expectations, they can quickly move the vehicles to areas with higher demand, thereby reducing operating costs.

Today, data can help technicians achieve many goals, such as avoiding risks, finding solutions, or anticipating events. The data can help companies use their resources properly for maximum benefit, and artificial intelligence can help them work more accurately and faster.

Robotics.

In connection with artificial intelligence, one should definitely mention robotics. Even if robotics is viewed as a futuristic technology concept, it is already being used by the supply chain. For example, the inventory in the warehouses can be tracked, localized and moved using robotics. Such robots are equipped with deep learning algorithms that help robots to make autonomous decisions about various processes performed in the warehouse .

Big data.

When talking about artificial intelligence, one should mention big data in addition to robots. Big data enables logistics companies to optimize future performance and predict more accurate prospects better than ever. The combination of the insights from big data and artificial intelligence can help to improve various aspects of the supply chain such as transparency of the supply chain and route optimization.

The provision of clean data is a major step for artificial intelligence in logistics . Such useful numbers are absolutely necessary for their implementation. Measuring efficiency is not an easy task because data comes from different sources. As is known, it is not possible to improve data at the source level. For this reason, certain algorithms are used to analyze data, improve the quality of the data and identify problems in order to achieve transparency that can be used for the benefit of the company.

Computer vision.

If your cargo is moving around the world, make sure you have a pair of eyes to monitor them. However, it is much better if the latest technology is used. Using computer vision, which is based on artificial intelligence for logistics, makes it easier for you to see and track things in a new way .

Self-driving vehicles.

Self-driving vehicles are another great product that artificial supply chain intelligence offers. Of course, it can take some time before driverless trucks are available, but high-tech driving is already being used in logistics to increase efficiency and safety. A significant change is expected in this area in terms of assisted braking, lane assist, and autopilot on the highway.

The modern, highly developed drive systems can help to reduce fuel consumption. They combine several trucks into formations that are controlled by computers. They are also connected to each other. Such a configuration should help the truck to save significantly on fuel.

How does artificial intelligence affect the supply chain? 

AI provides contextual intelligence.

AI provides contextual intelligence to the supply chain that can be used to lower operating costs and manage inventory. The contextual information helps companies quickly return to customers.

Using AI with machine learning makes it easier for companies to gain new insights into various areas, including logistics, supply chain management, and warehouse management. Some of the technologies used in these areas are AI-based visual inspections to detect damage and make necessary corrections by recording the load with the help of special cameras and intelligent robotic sorting to sort palletized shipments, packages and letters.

AI provides insights to increase productivity.

Using AI in supply chain management makes it easier to analyze performance and find new factors that affect the same area. To identify the factors and issues that can affect supply chain performance, the possibilities of different types of machine learning such as supervised learning, unsupervised learning, and empowering learning are combined.

AI helps forecast demand, analyzing large amounts of data.

AI makes it possible to measure and track all factors that can help ensure the high accuracy of demand forecasting. Based on the weather, real-time sales and other factors, continuous forecasts are delivered in a loop. This information can be very useful for automatic sorting , improving warehouse management, self-management of storage systems and self-propelled forklifts.

AI can help improve supplier selection and effectiveness.

AI can analyze supplier-related data such as audits, unrestricted delivery performance, creditworthiness and ratings and, based on this data, provide information that can be very helpful when making future decisions. This step makes it easier for the company to make better decisions as a supplier and to improve customer service.

AI is used to improve the customer experience.

According to Pega , a US software company, 38 percent of consumers are convinced that AI can significantly improve customer service. AI personalizes the relationship between customers and logistics service providers and offers customers a way to use the voice-based service to track their shipment. If problems arise, the customer will be forwarded to the customer service representative .

AI improves factory planning and production planning.

The introduction of AI enables companies to significantly improve factory planning and production planning. This means that they can work on analyzing the various problems and then optimizing them. Since the AI ​​has the ability to compensate for restrictions, this can automatically work well for situations when a product is only made after the customer’s order. It is made to order, from the English build-to-order.

Impact of artificial intelligence in transportation.

Transportation problems arise when it is quite difficult to determine system behavior based on the predictable pattern that is affected by human error, traffic, or accidents. In such cases, AI comes to the aid, predicting decisions based on data analysis. Nowadays, AI is implemented in various ways across the transportation industry . Some of them are explained below:

Business decisions.

By using AI methods, the freight system can use predictive methods to determine volume, which can simplify planning for the carrier. In addition, it is possible to develop a number of decision tools that can be run by AI. Companies can benefit greatly from such investments in AI in the future. 

Improve public security.

Real-time tracking of crime data in urban areas made it possible to ensure the safety of the people who use public transport. The police can use this data to make their patrol efforts more efficient and ensure passenger safety.

Self-driving vehicles.

In recent years, self-driving cars and trucks have been of interest to people. In order to increase productivity and reduce the frequency of accidents on motorways, Elon Musk and Uber have developed self-driving trucks.

Pedestrian safety.

Injuries and traffic accidents can be reduced by predicting the route of cyclists and pedestrians. The acquisition of traffic information makes it possible to reduce total emissions and the various uses of transport.

Traffic patterns.

The flow of traffic appears to have a significant impact on traffic. When analyzing traffic-related data for traffic management using AI, this information can help to dramatically reduce and streamline traffic congestion. Nowadays, a number of AI-based solutions can be used to develop smarter traffic solutions and to play their role effectively.

Conclusion

With the recent breakthroughs in technologies like big data and machine learning algorithms, AI should develop unusual logistics, supply chain, and transportation solutions in the near future.

If you have any further suggestions on how AI can be used in logistics and supply chain management, you can contact the Tech by Light team by email or Q&A .