How Artificial Intelligence Benefits Logistics and Supply Chain Management
July 12, 2020
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Businesses across sectors are adopting emerging technologies and AI computing techniques such as deep learning, machine learning and natural language processing. These technologies are gradually becoming the central part of our everyday lives without us even realizing it. AI has become the most important technology in various industries, including logistics and supply chain.
According to a report by Adobe, 15% of organizations have already implemented AI in their business, while 31% plan to implement it in 2019. Some of the areas which will see prominent use of AI will be product innovation, supply chain operations, research and development, and customer service.
Digital transformation in transport, logistics and supply chain industry has opened new doors to efficiently manage operations and schedules, and gain end-to-end visibility. Logistics and supply chain operations include dealing with a huge amount of data. AI computing techniques make it easy to analyse huge volumes of data in a sophisticated and efficient manner. It then triggers functions, generates requested information, and performs complex functions easily.
Here are the various applications of AI which can help in streamlining various processes of supply chain and logistics.
Self-driven vehicles will be a reality very soon. AI is one of the key areas that facilitates the functioning of autonomous vehicles. Self-driven cars and trucks will benefit logistics and supply chain by reducing the risks of on-road accidents and boosting productivity.
Insights drawn from big data analytics helps to forecast and optimize future performance. When used along with artificial intelligence, it improves the various areas of the supply chain like route optimization and supply chain transparency. AI-based algorithms are used to analyse the logistics data, enhance data quality, and identify discrepancies.
The supply chain makes use of robotics technology to track, locate and move inventory within the warehouse. AI-powered robots are equipped with deep learning algorithms that make autonomous decisions regarding the various warehouse processes.
AI offers logistics and supply chain operators with contextual information which can be used to manage inventory better. It helps in reducing operating costs and responding to clients quickly. AI and ML give insights into various areas of warehouse management, logistics and supply chain management.
Impacts of AI on Logistics and Supply Chain
Artificial intelligence has the potential to benefit businesses in several ways. Here are the most notable impacts of AI-equipped technologies in logistics and supply chain.
Shorten distribution process
Considering the complex operations and vast amounts of information that data specialists need to process in the present business scenario, enabling AI to learn and automate data analysis can simplify difficult and time-consuming tasks. It can track the location of products throughout the entire distribution process through GPS data and smart sensors. Moreover, AI technology can shorten the entire distribution process by guiding autonomous vehicles efficiently.
Supply chain management processes are only effective if the inventory is managed well. If the supplier fails to meet the demand, the time and money invested in it go in vain and customers remain dissatisfied. AI mitigates these risks with the help of predictive abilities. It can predict the upcoming demand of products, bring transparency to the entire process and influence decision making.
AI in supply chain management analyses performance and predicts new issues and possibilities in the same area. It utilizes the capabilities of various technologies such as supervised learning, unsupervised learning and reinforcement learning to determine issues in the supply chain. These insights generated help in eradicating time-consuming tasks and boosting overall productivity.
Improve customer service
AI plays a vital role in personalizing customer experiences. Personalized customer experience improves the relationship between logistics providers and their customers. AI-powered systems enable voice-based shipment tracking that allows the customers to get in touch with the customer assistance team directly in case of any issues, thereby enhancing customer service.
By adopting Artificial Intelligence, logistics and supply chain industry will change for the better. If you are new to this technology, now is the time to embrace it for your business.
Gateway Digital is a new age technology partner serving businesses across various industries with innovative technology solutions. With our array of digital solutions, we help transport and logistics businesses to improve the efficiency of operations and transform the way they work. Along with our end-to-end logistics innovation partner DiLX, we facilitate digital transformation for leading transport and logistics players.
Want to embrace emerging technologies to transform your transport, logistics and supply chain management business? Get in touch with us for more.