Logistics Revolution with AI

Prepare for the logistics revolution with artificial intelligence.

Artificial intelligence (AI) extends its tentacles over the supply chain and begins to revolutionize logistics. What is this all about? How can AI help your trailer fleet, and what can you do to join the AI logistics revolution? Kindly do check the detailed instruction on Mi Ocado Employee Portal.


What is AI?

‘Artificial intelligence (AI) is an area of computing dedicated to creating intelligent machines that function and react like human beings. Some of the activities that artificial intelligence computers are designed for are speech recognition, learning, planning, and problem-solving. ‘ (Source: Techopedia ).

AI and logistics

AI already plays an important role in the supply chain. AI is changing common logistics practices with different methods of transporting goods around the world, including predictive analytics, data intelligence, robotics, and autonomous vehicles. These are some of the aspects in which artificial intelligence is revolutionizing logistics:

• Forecasting and planning

Artificial intelligence, combined with the capabilities of data intelligence, can greatly increase the transparency and efficiency with which logistics managers estimate demand and plan capacity, allowing them to be more proactive in allocating their resources.

Artificial intelligence analyzes real and historical data and generates predictive data that managers can use to forecast trailer demand and send it to the places where it is most needed.

This, in turn, reduces operating costs. In addition, AI can assess the resource situation and recommend its allocation much faster than human operators. (Source: Cerasis ).

An interesting case is that of UPS, which has used AI data to help plan the route of its vehicles. He found that normally 10% of the turns are to the left.

By eliminating left turns for his drivers through traffic on the right side of the road, he managed to save some 38 million liters of fuel and deliver an additional 350,000 packages a year. And this was achieved despite having chosen longer routes for its drivers. (Source: TheConversation ).

• Storage and robotics

With the use of AI, more and more robots are used to locate, track and move inventory in warehouses.

For example, the British company Ocado has developed a sophisticated robotic solution for supermarket chain stores. Its automated dispatch center in Andover, near London, uses hundreds of robots to store and collect food along with an aluminum rack or “hive” behind which there are employees. (Source: The Verge ). The website can be found at www.miocado.net, which is only accessible by the Ocado employees.

Ocado has reduced its average fulfillment time from two hours in its old warehouse to between 5 and 15 minutes in the new one. (Source: AJOT ).

• Operational efficiency and customer service

AI can generate valuable information about the movement of goods through the supply chain to significantly increase your operational efficiency. This information helps companies reduce inventory and operating costs, respond faster to customers, and provide better customer service.

Some examples of AI-based technology that can improve operations, mentioned in DHL and IBM’s “Artificial Intelligence in Logistics” report, include an intelligent sorting robot that quickly sorts letters, packages, and palletized deliveries, and a robot that performs visual inspections of items with special cameras to identify possible damage and necessary repairs.

Artificial intelligence in today’s logistics

Cerasis analysts note that there are more and more artificial intelligence-based solutions for logistics and supply chain. The technology is already available today and can significantly improve the insufficient quality of current data.

The main challenge lies in the shortage of people with the necessary skills to use and take advantage of this exciting new technology.

However, according to technology solutions company Salient, this is likely to change soon, as 64% of supply chain managers consider data analytics a top priority for their merger companies.

How to join the logistics revolution with artificial intelligence?

You can join the AI logistics revolution in several ways. Stephanie Krishnan, research director at analytics firm IDC, recommends three ways to start using AI.

Although not strictly AI-based, I use applications that use company standards to process data. For example, if a purchase order, a delivery order, and an invoice coincide, they allow and automate the payment in the period established in the contracts.

Using AI in specific applications, such as customer service requests, where chatbots can reduce errors.
Integration of AI into existing general systems, such as enterprise resource planning and order fulfillment. If you are not interested in building an in-house team of AI specialists, you can install an AI solution from vendors like Transmetrics and ClearMetal.

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