3 Ways in Which AI Will Transform Logistics
Some of the major logistics solutions providers have been using traditional methods to make sense of the large amounts of data that is generated daily from their operations. With technology advancing everyday, it would be rather incompetent to continue operations with the traditional methods. Now is the time to move from the traditional methods to more sophisticated methods like Artificial Intelligence (AI). Some companies have already started integrating AI computing techniques which include deep learning, machine learning (ML) and natural language processing (NLP) to automate and streamline the processes.
How does AI work? All the techniques in conjunction with AI work in a very similar fashion. They train the computers to understand data provided to it in a meaningful manner to impart information that has been requested, analyze the data and cause an event to occur based on the related findings. One of the major advantages of working with AI is, it has the capability to analyze large amounts of data rather quickly and can be widely used within various sections of the supply chain and logistics operations.
To be able to fully reap the benefits of AI to increase levels of efficiency and be able to create new value, let’s take a look at three ways AI will help transform logistics:
1.Controlling data: One of the most prominent use of AI in supply chains is being able to take control, analyze and identify various trends in the data. It has been seen that one of the unused assets of the logistics industry is the large amount of data that is generated by supply chains daily. This data includes both organized and unorganized data. Thus AI will greatly help utilize this data.
2.Forecasting analytics: Another great breakthrough in the logistics industry would be using predictive analysis that has been generated by AI. This includes predicting the demand, finding the most optimal route and even handling the management of computer networks called “network management”. Moreover, machine learning tools can also be used to find out delay times to reduce them in the future.
3.Customs fee: AI can also help fasten the process of brokerage whilst improving the error margin and at the same time generating more savings. The process of customs declaration can be one that requires a great deal of effort because the information needs to be cross-checked and validated by regulatory bodies and government sector forms. Thus, there is a greater chance of human error as these are details that require close attention and are extremely crucial. It may lead to expensive mistakes that the company may have to incur. Thus, automating it using AI can help avoid or totally eradicate these errors.
There is no doubt that companies operating global supply chains need to incorporate the new technologies into their business to overcome the unmatched pressure and be able to deliver high quality service. Much of the internal functions such as finance, accounting, information technology and human resources have a large number of repetitive tasks daily. These can be replaced by AI powered technology to reduce costs, increase accuracy and productivity and save time. Using AI will give companies the competitive advantage over others that haven’t implemented it yet by improving customer experience, scheduling faster deliveries through optimal routes, improving predictive analysis and reducing risk.