Artificial Intelligence (AI) technology has already reshaped a lot of industries from hospitality to healthcare and learning. The leading solution is also dramatically transforming the logistics field. According to the research, the global AI in the logistics and supply chain market is expected to grow at a CAGR of 45.5% by 2027. In this article, we’re going to overlook the AI trends in logistics to look for in 2020.
Today more and more AI-based logistics applications appear on the market to optimize the transportation companies’ and business performance. Each solution can help organizations to do certain tasks. So, let’s see 8 ways AI is transforming the logistics industry and how technology can improve your business.
Integration of the AI solutions can decrease the costs by automating warehouses. The technology can do a lot of everyday routine tasks and change many processes like data collection, inventory, and so on. AI has the ability to analyze the data gathered, predict demand, re-route in-transit goods, modify orders, and communicate with each other for optimizing transportation between warehouses. Such agility and planning in logistics mean lower costs, better service, faster work.
It’s not news that big data has great potential in various fields, including transportation and supply chain. There is tons of information gathered daily when dealing with logistics. It’s a true challenge to process and exploit all the data fast and accurately for planning. AI can do that. Besides that, the system considers such factors as political landscape, weather, and others. Today thanks to the AI solutions integrated, logistics companies can:
- Refine the data gathered from each touchpoint;
- Analyze all the data accurately;
- Come up with the patterns for better strategic decision making;
- Increase automation of repetitive tasks;
- Make clear and accurate predictions.
Watching movies such as Total Recall with Arnold Schwarzenegger and Demolition Man with Sylvester Stallone, the autonomous vehicles seemed to be just a fantasy. However, it’s a reality nowadays. Currently, such companies as Tesla and Google have already developed self-driving cars with AI implemented.
Autonomous vehicles promise to reduce the costs, save time, decrease accident rates. Currently, human supervision is a must to drive autonomous vehicles on roads, yet in the future it’s expected that cars will be fully automated.
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AI-based computer vision can help logistics companies with a wide range of tasks and optimize performance. For instance, the AI computer vision used for automating warehouses can identify the needs and help with organization of the inventory. Another use-case is from logistics giant DHL — visual inspection powered by AI. The technology helps:
- Scan and identify the damage;
- Classify it by the type;
- Determine the appropriate remedial measures.
The key feature of the computer vision in this case is speed. The AI solution does all listed tasks much faster than ever before.
There is one more great example from the retail giant Amazon. The system helps unload a trailer of inventory in only 30 minutes when doing the same without the computer vision takes several hours.
AI used for roads can improve transportation and make it more effective, in-time, and safe. Thus, the great example of the technology used for the purpose are highways with solar panels and LED lights. Thus, the panels provide electricity and LED lights alert about various road conditions. What’s more, solar panels prevent the appearance of the slippery surface on the road in winter.
Drivers, using the roads with AI-based fiber optic sensors, can get the information about the traffic volumes, alerts about road conditions, accidents, etc. In the event that the vehicle or truck gets in an accident on such a road, the AI technology will immediately report appropriate emergency services.
The AI solutions integrated can automate the repetitive back-office tasks and operations. Combining AI with Robotic Process Automation (RPA), the logistics organizations can improve the accuracy, speed, productivity of the employees, and reduce the costs. The technology is helpful with the everyday data-related tasks that can be done by robotic assistance. This will free your workers and let them focus on other crucial aspects. That leads to a rise in their quality of work.
Accurate predictions can save money and customers. The AI technology integrated provides various algorithms for forecasting the trends, goods, and/or supplies needed for your company in the future. As Deloitte reports, such algorithms forecast outcomes precisely and better than human experts. The technology tracks and measures all inputs and variables for creating contingency plans. That can reduce the costs of your company, navigating you successfully through any emergencies.
It’s no matter if your company is B2B or B2C, it’s crucial to keep your customers engaged. The fastest way to do it is to improve their experience. AI technology can increase customer loyalty and retention. The solution can personalize the service, suggest products according to the previous purchases, page views, and customizations based on the buying preferences, habits. In such a way the AI integration can turn users into consumers, increase revenue, build a brand.
AI technology dramatically reshapes the logistics field. The integration of the solution can improve inventory, transportation, accuracy, management, and power the employees to make their job more efficient. The key feature of the solution is the automation of the routine tasks, speed, and efficiency of the back office, big data analytics, and on and on. Artificial Intelligence can also eliminate the risks and reduce the accidents associated with the transportation of the cargos. In this article, we provide you with 8 ways the AI transforms the industry and show you the use-cases on how your business can benefit from the integration of the solution.