How AI Is Driving the Next Phase of Growth in Logistics Industry?
Today we find ourselves in another transformational era in human history where Artificial Intelligence (AI) plays an increasingly central role in this transformation. AI stands to greatly benefit all industries and is prevalent in consumer-facing applications, clerical enterprise functions, online and offline retail, autonomous mobility, and intelligent manufacturing. AI in logistics plays an important role and beginning its journey to become an AI-driven industry.
We hope you will find this an insightful read, and we walk you through as How can AI be used in logistics to reinvent back office, operational, and customer-facing activities?
Well, let’s discuss the reason for why Logistics companies are facing an era of unprecedented change is that as New technologies are enabling greater efficiency and more collaborative operating models. It is the best time for the logistics industry to embrace AI because digitisation takes hold and customer expectations evolve.
AI can help the logistics industry to redefine today’s behaviours and practices, planning from forecast to prediction and services from standardized to personalized. It also offers logistics companies the ability to optimize network orchestration to degrees of efficiency that cannot be achieved with human thinking alone
Here are few things you should know about Artificial Intelligence and its Role in Logistics?
Artificial Intelligence (AI) has a growing presence in our personal lives and is rapidly being applied by businesses to increase efficiency and create new value. Many logistics companies around the world embrace digital transformation, transitioning away from legacy enterprise resource planning systems to advanced analytics, increased automation, and hardware and software robotics, and mobile computing.
With the help of AI, the logistics industry can shift its in operation from reactive actions to a proactive and predictive paradigm, which can generate higher insights at favourable costs in the back office, operational and customer-facing activities. For instance, AI technologies will use advanced image recognition to trace the condition of shipments and assets, bring end-to-end autonomy to transportation, or predict fluctuations in world cargo volumes before they occur.
More and more companies are adding artificial intelligence (AI) to their supply chain With the growing digitization of the professional world, in order to maximize their resources by reducing the time and money spent on deciding and when to send a package to a certain place.
Inventory Optimization means maintaining a particular level of inventory that may eliminate the out-of-stock situation and at the same time the cost of carrying inventory is not harmful to the bottom-line. Logistics plays a significant role as to scale back value of the product without reducing the material cost or process cost. The technology can also secure and manage the supplier inventory and the number of trucks that are available for delivery and Optimized logistics model. It becomes successful if it satisfies the Demand & supply equation.
Making brokerage processes easy
Customs declarations rely heavily on manual processes that involve knowledge of regulations, industries and customers. Cross referencing and validation are an effort-intensive process. Natural language process will modify and enable an AI software to extract relevant information from documents in various formats and present a declaration.
Tackling Unforeseen Circumstances
AI can be trained to learn from contingency plans that can guarantee corrective action in the future in and Using AI to scour the internet to observe trends can predict any increase in the demand of a certain category of products or to identify any risk way ahead in time.
Expect the unexpected when it comes to the logistical business as a series of circumstances could affect the expected delivery date of a product. Natural disasters such as hurricanes and floods, carrier bankruptcies and employee strikes can all affect the natural course of a company’s logistical workflow.
Source: S.N.A.K India
Artificial Intelligence are changing the Logistics Industry
There are an increasing number of people around the world who have significant purchasing power. Manufacturing and design technologies are capable of producing goods at some times blinding speeds. Likewise, new vehicular modalities increase the efficiency and capability of the transport industry.
What does all this mean for logistics? Each of these aspects challenge current business practices to compete at a faster pace alongside an increasing number of options.
Technology, such as artificial intelligence (AI), and other innovations, provide enticing solutions.WThe logistics industry itself is independent of the transportation industry. Logistics is involved with planning and analysis. Transportation implements the findings, goals, and long-term plans set forth by logistics professionals.
While transportation is action oriented, logistics technology makes the modern world possible.
“Current fragmentation in the logistics software market is an impediment to adoption. With the spike in blockchain and A.I. technologies, a myriad of new fragmented logistics software platforms has entered the market, offering more choice but at the same time confusing the markets. In 2019, a few selected that offer the most value will thrive while others will fizzle out as more of a novelty,” said Ashik Karim of 1Shift Logistics, an end-to-end logistics solutions company that uses technology to improve the industry.
Logistics technology brings efficiency to the supply chain. Its advantages can be employed for end-to-end solutions. From planning, tracking, control procedures, and implementation, logistics improves current operations. It also finds opportunities that may exist in production, storing, distribution, and transporting.
Many, if not most, of the top world leaders believe that artificial intelligence (AI) is the most profound technology to ever grace the human race.
Business leaders believe that AI has significant advantages for business.
By 2035, the AI market is expected to generate a 38 percent increase in profits.. AI’s ability to find inefficiency in current business-to-business transactions opens up a new world for data management. It provides the tools to enact operational order.
While AI can find, diagnose, and automate logistical solutions, digital ledger technology can record, secure, and make operations more efficient. Deloitte compiled a global survey and found that digital ledger technology adds speed (32%), encourages new business models (28%), and reduces costs (16%).
Each of these aspects alone are capable of a cascade of modernization for logistical practices. Together, they illustrate how disruptive a change is coming.
1Shift Logistics was created by the team at LiteLink Technologies. The 1Shift Logistics software provides cutting edge end-to-end logistics management solutions for the freight and logistics industry.
The revolutionary software empowers decision makers with increased visibility. It is a practical solution that can be accessed via desktop and mobile phones. It enables managers to directly connect with every member of the team. For instance, drivers find automated real-time routing, delay and incursion updates, along with payment processing.
The product works on desktops and on trucker mobile phones, eliminating the need for drivers to get involved in long discussions regarding route, delays and payments. The 1SHIFT Logistics platform seamlessly automates these typically manual features.
1SHIFT Logistics is a live and actionable solution. It offers decisive advantages for pricing histories, partnerships, and variable factors that determine operational decisions. As an enterprise solution, it delivers an improved understanding, speed, efficiency, cost reduction, and complete end-to-end monitoring with minimal need for manual intervention.
Artificial Intelligence how will supply chain management be promoted?
Logistics has been an integral part supply chain and business models. Unlike the past, businesses have now started to focus on its development for which they look up to new age technologies. Artificial intelligence (AI) is one such technology that holds the potential to leverage logistics to overcome present challenges. Retail logistics face the most challenges as it directly caters the consumers and is widespread making it more complex. Logistics currently needs to predict consumer needs, goods demand, a simpler process, and streamlined workflow to remain unhindered and profitable.
AI in Documentation
Organizations from around the world used to put in their efforts in managing the paperwork for logistics which was prone to errors, costly, and time taking. AI adoption allows automating the process and saving money as entities themselves could enter data and AI interface managed all by itself without human intervention. Also, the insights received from this data enables companies to enhance their payment and documentation methods and keep a track of them.
The major benefit of AI proves to be its predictive analysis of customer demands. Integrating AI in logistics will give manufacturers to retailers, an insight of consumer needs. Retailers will be able to understand the demand of particular good at a particular time or region and accordingly, they would procure them. Data received from retailers would help all other entities in the supply chain redefine their inventory. Improvements made at the top of the hierarchy would trickle down and benefit the rest.
Apart from customer needs, AI can also leverage organizations to improve their logistics management system as it will enable them to keep a track of their assets in real-time. From transportation to inventory everything could be sorted according to requirements of the market. A proper assessment of assets will allow optimizing resources and investments.
Tedious and mundane tasks can be shifted to the AI interface which will carry them out with the same efficiency each time. As AI can interpret bigger data sets companies can fetch more tenders and choose the most reliable and profitable logistics partners based on it.
Source: CIO Review