Due to the developments of artificial intelligence (AI), several changes have been made to the logistics industry and supply chain. This powerful technology has enabled predictive analytics, autonomous vehicles, and intelligent roads.
Consequently, we have discussed the top 5 logistics problems AI can solve. Moreover, several startups have incorporated AI into their business models.
Realtime Use cases of AI in Logistics
Research has shown that implementing artificial intelligence in the supply chain can result in companies gaining between $1.3 trillion and $2 trillion per year.
Artificial intelligence (AI) has become increasingly popular among enterprises such as Google, Amazon, and Intel because it saves time and money by automating several time-consuming tasks.
The time has come to talk about how companies in logistics are already using artificial intelligence.
1. Warehousing automation
Today, there is a tendency for AI to transform warehousing operations, such as collecting information and analyzing it or processing inventory. AI helps companies increase efficiency and profit. The company uses artificial intelligence to predict the demand for products. Then the company delivers the items to the regional warehouses, reducing transportation costs.
In the upcoming time, companies will be able to automate 30% of warehouse tasks, according to Turabit.
Furthermore, the system can manage the work and perform various routine tasks. We have prepared an example of a company that was able to make some money by integrating AI into its warehousing system.
2. Autonomous Vehicles
We all know about driverless cars, but AI allows for the automation of even more vehicles. AI is profitable for transportation. Besides driverless cars, AI allows for the automation of various transportation methods. Such vehicles can either work alone or cooperate with someone to transport goods. For example, trucks, vans, or buses can be automated to transport goods. In some countries, however, the government believes this can only be done with a vehicle driver to control the road situation entirely. This might change in the future.
Self-driving vehicles can reduce fuel consumption, optimize routes, and help avoid human errors, some of the benefits driverless technology can bring to logistics.
3. A more innovative approach to roads
The use of AI in logistics goes beyond driverless cars. Companies are leveraging AI in smart roads, developing a wide range of solutions to suit regional requirements.
Developed roads are equipped with solar panels and LED lights, for example. What is profitable for the logistics industry? Solar panels can produce electricity and use colorful lights to alert drivers to changing road conditions on such highways. They can also heat, so the roads don’t get slippery in the winter.
Considering the benefits mentioned above, intelligent roads benefit logistics as they eliminate delivery delays caused by unacceptable weather conditions.
4. Automation of back-office operations with artificial intelligence
The logistics sector relies heavily on back office operations. Artificial intelligence (AI) and robotic process automation (RPA) can help employees work more efficiently. Back office automation effectively allows companies with supply chains to save time and money on repetitive data-related tasks. For example, some data-related tasks can be automated every day.
As a result of combining AI and RPA, cognitive automation is a technology that helps companies save time, become more productive, and increase accuracy. This technology primarily intends to replace some employees, such as accountants and human resources personnel. The reduction of human error will result from this replacement.
Researchers of Mckinsey aim that robots handle 22% of lawyers’ jobs. As a result, tasks such as reading the agreements and identifying risky clauses take time. AI-powered contract management software can reduce the time spent on such schemes and improve accuracy. AI apps, according to LawGeex, are 94% accurate, while lawyers are 85% accurate. In addition, the system is faster when reviewing contracts. The same research found that the software takes only 26 seconds, whereas a person takes 92 seconds.
5. Predicting customer demand with AI and improving customer service
The logistics sector can benefit from artificial intelligence for predicting demand.
A company must predict the volume of goods to speed up the delivery process. Alternatively, if the quantity of goods is limited, but the demand is high, they might lose money.
Researchers have found that AI-based tools predict trends more accurately than human specialists. Using artificial intelligence, demand predictions can be more accurate by monitoring the necessary factors. Once this information is available, warehouse management can become more accessible.
A further benefit of AI is that it enhances customer experience. This technology lets customers interact with the company more personal and, consequently, builds trust.
AI has several applications in the logistics field. Artificial intelligence allows for the automation of routine tasks that would require a considerable amount of manual effort.