Impact of AI in Logistics

In very simple terms, AI is the ability of machines to make intelligent decisions based on the available data sets. The use of AI in logistics is revolutionizing the sector in more ways than one and the trend is likely to grow. It has impacted the logistics industry by making supply chain management more efficient and smooth. Let us look at some of the areas within logistics where AI has created the most impact: 1. Finding the Quickest Delivery Route or efficient route optimization – Every logistics company wants an answer to the question – What will be the shortest time taken for the transportation of goods and services in the most efficient manner? This question translates to – What is the shortest delivery route in which the delivery can be made efficiently? A bad decision in this respect would lead to delay, increased fuel consumption, increased costs, and ultimately a dissatisfied customer.

AI-integrated vehicles are a solution to most of these problems. AI helps to manage even the most elaborate datasets. It can help in determining a coordinated and faster route for delivery reducing about 30% of travel time, thus reducing fuel usage and supply chain costs.

2. Use of chatbots for improved customer satisfaction – Using AI in answering customers’ queries has produced positive results for logistics companies. It is a recognized fact that customers feel more comfortable when a virtual assistant is answering their questions and they tend to ask more questions openly to clear their doubts.

3. Automation in productivity – There is increased automation of processes in logistics by the use of robotics and advanced algorithms for packaging, sorting, and machine learning for loading freight containers. Geo-coding is also used to locate potential warehouses.

4. Speeding up the ability to make scheduling decisions – This is what machine learning is doing to companies. Companies are being able to get usable predictions through datasets that are fed into the system based on which machines can analyze scenarios and resolve complex issues related to the supply chain.

5. Optimizing the best-suited vehicle – Based on the information provided by the customer on the type and quantity of goods being distributed, AI can help in ascertaining whether one needs to hire a tempo or a mini truck.

6. Understanding consumer behavior – AI is also aiding companies to predict consumer behavior. Algorithms can conduct a predictive analysis in a very short time and anticipate consumers’ demands. This information is very important for companies as it enables them to know when and why customers need a product or service and in which location(s) are these services most needed. For instance, it can be predicted that in the growing Tier 2 cities, there is a huge demand for mini goods carriers and mini truck hiring services. Based on these, companies can make decisions to their advantage.

Thus, there is growing interest in companies for the use of AI in supply chain management to lead to a more seamless, predictable, and automated future for the logistics sector and transportation of goods and services.

Impact of AI in Logistics

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