Artificial Intelligence (AI) isn’t just a definition or “future tech” anymore, it is part in daily operations in Logistics and in business strategy of almost every company and it solves real problems.
But how is AI used within Logistics?
Here are some examples how AI is used right now within Logistics.
(And Supply Chain Management.)
1. Demand Forecasting
AI predicts demand using historical sales and market data and season patterns
Example – a company uses AI to know sales volumes over the year.
Advantage – better forecast on production and sales activities.
2. Route optimization – traffic
AI forecasts route optimization based on the real time traffic situation or historical traffic patterns.
Advantage – best route given every situation (e.g. traffic) and lower costs on fuel.
3. Route optimization – price and capacity
AI combines the best carrier freight rates and capacity based on customer location.
Advantage – a better reliability of the customer delivery time and cost optimization.
4. Predictive (fleet) maintenance
· AI predicts vehicle maintenance times using historical fleet data.
· Advantage – maintenance done in time resulting in less downtime and less costs for maintenance.
5. Warehouse automation
· AI directs robots for the order pick process and the packaging process within a warehouse.
· Advantage – faster warehouse throughput times, lower costs and less fault percentage.
6. Last Mile Logistics
· Drone technology or autonomic transportation for last mile (City) deliveries.
· Advantage – lower logistical costs, less road capacity constraints.
7. Supply Chain visibility
· AI tracks shipments and order status and predict / manages disruptions.
· Advantage – better risk management, reroute to avoid delays and optimized customer deliveries.
8. Smart customs process
· AI automates and speeds up customs documentation work on verification and authorization.
· Advantage – a faster clearance process and less errors due to manual work.
9. Chatbot function
· AI answers 24/7 shipment questions or order status questions from customers.
· Advantage – fast response time and a better customer satisfaction level.
10. Financial
· AI detects unusual transactions or suspicious trade activity.
· Advantage – a better risk management, security and compliance.
#AI #future #innovation #logistics #supplychainmanagement
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