THE IMPACT OF ARTIFICIAL INTELLIGENCE ON LOGISTICS INDUSTRY

Marketing Manager

Anastasia Shevchuk

The world of logistics has been completely transformed by the rapid evolution of AI. AI is no longer a luxury, but a necessity required for businesses to thrive. Artificial intelligence in the transportation industry is set to revolutionize the logistics industry. Could you ever have imagined driverless cars moving on the roads of your city or robots carrying heavy boxes in warehouses? It sounds like science fiction, right? But it is very much real, and only a small part of what Artificial intelligence has already brought to our world. The time for digitalization and optimization is upon us.

Let's take a look at six ways Artificial Intelligence is transforming the logistics industry as we know it, including the role of artificial intelligence in logistics, automation in the logistics industry, and also the challenges with AI in logistics.

Artificial Intelligence is often used to transform warehousing operations nowadays, with everything from information collection to inventory procedures affected. AI increases productivity, eliminates labor-intensive duties that involve repetitive physical work and manual data, and helps increase profit.

For instance, a warehouse worker may load a robot with heavy packages. Robots then move the inventory from one end of the warehouse to the shipping zone and the software records the movement of that inventory, keeping all records current. This improves the efficiency, speed, reliability, and accuracy of tasks.

Moreover, there are several types of warehouse automation:

1.Goods-to-Person (GTP)

Goods-to-person fulfillment is a popular method for increasing efficiency and reducing congestion in warehouses. This category includes conveyors, carousels, and vertical lift systems. When properly applied, GTP systems can significantly speed up warehouse picking.

2.Pick-to-Light and Put-to-Light Systems

These systems use mobile barcode scanning devices synced to digital light displays in order to direct warehouse pickers to where they must place or pick up selected items. They can dramatically reduce walking and searching time as well as human error in high-volume situations.

3.Voice Picking and Tasking

The use of voice-directed warehouse procedures involves speech recognition software and mobile headsets. The system creates optimized pick paths to direct warehouse workers exactly where they need to pick or put away a product.

Artificial intelligence in the transportation industry is now being used to build smart roads. Smart roads technology combines sensors and solar panels with software infrastructure like AI and Big Data to make driving efficient, safer, and more sustainable.

Smart road technologies are embedded in roads and can improve visibility, generate energy, communicate with autonomous and connected vehicles, and monitor road conditions.

Here are a few examples:

1.Traffic detection

Data that helps drivers plan their routes. AI-integrated sensors embedded in highways monitor traffic flow, warn drivers of traffic jams, and automatically alert them about accidents.

2.Traffic management networks

Networks of AI-integrated sensors detect weather conditions, provide warning signs for hazardous conditions, and send automated traffic signals which control traffic. Traffic management networks improve safety and energy efficiency.

3.Traffic light optimization

Systems that use data from smart vehicles to optimize traffic lights and update commuters on jams or bottlenecks.

Most transport-related smart tech focuses on individual vehicles, although there have been major advances in technological solutions for smart infrastructure on a larger scale. Worldwide experiments in Vehicle to Infrastructure, Vehicle to Vehicle, and Vehicle to Pedestrian technologies will make urban transport smarter in the future.

Artificial intelligence is a great solution for reducing costs in the transportation industry. Self-driving vehicles bring about great changes to the supply chain and significantly reduce costs in logistics. AI technology is going to automate not only cars, but also trucks, vans, and buses, allowing them to transport goods faster and more efficiently. However, driverless trucks might not be coming out particularly soon, but semi-autonomous vehicles are on the rise. AI solutions for the logistics industry will have a huge impact.

Logistics companies are already utilising autonomous driving systems. Trucks travel in a certain direction while following a lead truck with a human driver. They synchronize braking, accelerating, and steering, which enables them to enhance freight capacity and minimize costs.

However, many countries require the driver to be in the vehicle so they can fully control the situation on the road and analyze possible risks. Of course, this may be changed in the future.

An excellent example of an autonomous vehicle is the Rolls-Royce. The British enterprise cooperates with Intel to develop autonomous ships. This tool has several interesting features, for example, it can recognize and define objects in the water, monitor engine conditions, and choose the optimal routes. As a result, delivery speeds are increased.

The integration of AI Chatbots can help businesses reduce consumer response time and decrease the need for customer service executives.

Today, chatbots can provide in-depth, personalized assistance around the clock.

Furthermore, chatbots can direct clients to knowledge base articles or transfer them directly to a live agent that specializes in handling their issue. In addition to being polite and practical, chatbots are also beneficial when dealing with foreign customers who do not speak the languages supported by the business locally. So, Artificial Intelligence technology ensures efficient and fast customer service.

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The term 'Big Data' has already been a buzzword for a few years, but the number of ways in which businesses can benefit is only increasing. Big Data with Artificial Intelligence in the logistics industry helps predict shipping volumes and allows businesses to plan for the future by taking into account important factors like weather and political landscape, etc.

Moreover, Artificial Intelligence helps to gather data from all touchpoints, analyze it and spot patterns which help make significant changes to supply chain management.

Logistics companies gain the ability to make clear predictions and optimize their performance using the power of Big Data in the logistics industry. The high volume of structured and unstructured data is generated by supply chains on a daily basis, and Big Data enables logistics companies not only to exploit this information, but also to adopt advanced predictive analytics and increased automation to drive their strategic decisions.

Big data is revolutionizing many fields of business, and logistics is just one of them. Big data in the logistics industry can be used to optimize routing, streamline factory functions, and give transparency to the entire supply chain.

Furthermore, Big Data can help to ship sensitive goods of higher quality. Keeping perishables fresh has been a constant challenge for logistics companies. However, Big data and the Internet of Things could give delivery drivers and managers a much better idea of how they can prevent losses as a result of perished goods.

For example, let's imagine a truck is transporting a shipment of ice cream and desserts. You could install a temperature sensor inside the truck to monitor the state of the goods inside and give this data, along with traffic and road work data, to a central routing computer.

This computer could then alert the driver if the original route would result in the ice cream melting, and suggest alternative routes instead.

Robotic process automation in the logistics industry is the application of robots to one or more of these processes. Robots automate the process of picking, packing, storing, and moving goods as they make their way through the supply chain. They operate on prescribed pathways, moving products for shipping and storage around the clock.

Robotic process automation in the logistics industry has several clear benefits:

1.Improved performance

By using robotic technologies, warehouses can improve their productivity without affecting quality. Robots increase accuracy and accelerate repetitive processes when used alongside human employees.

2.Improved working conditions

Warehouse workers can rely on machines to carry heavy loads. This reduces the risk of serious injuries which could affect worker's health and safety.

3.Cutting staff costs

Using robots in a warehouse optimizes the need in the human workforce. It also significantly reduces the number of paid sick leaves, for example, or work-related accidents that incur significant costs for employers.

Robotic process automation offers more flexibility because it can run continuously and only needs to stop for maintenance.

Although the concept of Artificial Intelligence is appealing to shippers, carriers, and others, there are several challenges with AI in Logistics that need to be carefully considered and taken into account.

Like any other new technology solution, training is paramount. This will cost companies money, time, and an initial reduction in business efficiency. Logistics partners will need to work with the AI provider to create a training solution that is both impactful and affordable during the integration phase.

With more automation comes the inevitable reality of reducing the workforce. Unfortunately, victims of this improved efficiency are the people who currently occupy these positions. When jobs are eliminated due to the role of artificial intelligence in logistics, the company needs to either find new positions for their employees to take on or dismiss them altogether.

An AI-operated machine has an exceptionally large and complicated network of individual processors and other components. Each part requires replacement from time to time in order to maintain operational integrity. These parts can be rather expensive and AI machines require constant updates, which also includes replacing expensive internal batteries.

If you want to learn more about digitalization in logistics, take a look at our informative article: "The Changing Face of Logistics: What Changes to Expect in the Next Decade?"

The future of Artificial Intelligence in logistics looks extremely bright. Even now the role of AI is significant as it offers a variety of advanced solutions. Companies of all sizes are integrating this powerful technology into their daily operations, and as a result, the automation of routine tasks in logistics is speeding up processes, reducing the probability of human-error mistakes, and increasing customer satisfaction.

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