How AI Is Revolutionizing Global Logistics And Supply Chain
With globalization, everything became more digital, people started to buy more online and want their products or services to be delivered faster and cheaper. In such a fast world, logistics and supply chain have to keep pace with rapidly changing customers’ needs. According to ML news, supply chains lose hours every day on paperwork, which results in more than $170,000 a year. One of the ways to make the situation better is to use artificial intelligence for some of the tasks. Transferring some manual tasks to the machine can resolve the problem with human-based paperwork as well as improve productivity. So, in this article, we will review the top 5 areas where AI can make logistics and supply chain management better.
Artificial intelligence has brought about huge changes in logistics and supply chain companies. Here are 5 ways of how AI-driven technologies impact companies by driving improvements and innovations in their logistics and supply chain operations.
Efficient performance, timely delivery and reducing transportation costs are essential for any logistics company. To achieve this, it is important to carry out an in-depth analysis based on historical data to identify patterns for risks, take corrective actions and make forecasts. Only by using a predictive analysis you can vastly improve the logistics processes, adjust shipping patterns, provide on-time delivery as well as predict customers’ behavior. This technology is becoming more and more popular, according to the 2020 MHI Annual Industry Report, the number of logistics companies using predictive analysis grew from 17% in 2017, to 30% in 2019. Not only does it help you enhance supply chain visibility, optimize routes and make it easier to track and plan shipments, but it also can detect unexpected conditions and risks. If implemented correctly, it will significantly reduce the operational costs and help companies make more informed decisions.
Robotics means the usage of smart machines in the process of supply management. According to Statista report, the logistics service robotics sales will amount to more than 6 billion U.S. dollars in 2021. Generally, robots can perform mundane tasks including delivery, transportation, warehousing, picking, packing and routing. The main difference between traditional industrial robots and AI-enhanced is that the last ones can perform more complex tasks without the necessity of human control. Moreover, smart robots can evolve by learning new types of tasks and performing more and more complex actions. It means that this machinery can partly and in particular cases fully replace the human, making the process of delivery more predictable, easy to control and more effective. For example, drones can deliver a particular amount of weight and can either fly or move by ground or water. Radio-frequency identification (RFID) systems can automatically sort, locate and deliver packages through the warehouse. So, the use of robotics in logistics can increase productivity alongside make it easier for humans to control the different stages of delivery.
Every vision technology consists of two main blocks: the camera and the “brain” computer which makes all work.
