How AI is Revolutionizing Global Logistics and Supply Chain Management
Artificial intelligence is taking up the pace when it comes to global logistics and supply chain management. As per a number of executives from the transportation industry, these fields are expected to go through a more significant transformation. The on-going evolution in the areas of technologies like artificial intelligence, machine learning, and similar new technologies is said to possess the potential to bring in disruption and lead innovation within these industries.
Artificial intelligence comes with computing techniques which helps to select large quantities of data that is collected from logistics and supply chain. You can put such methods to use, and they can be analyzed to get results which can initiate processes and complex functions.
Many organizations have now been benefitted with investments in artificial intelligence. As per Adobe, currently, 15% have already started to use AI while other 31% plans to have them implemented in 2019. Some of the areas from which revenue can be generated are research and development, product innovation, supply chain operations, and customer service.
Impact of artificial intelligence in Logistics
Predictive capabilities will rise.
The efficiencies of the company in the areas of network planning and predictive demand are getting improved with AI capabilities. Companies get to become more proactive by having a tool which can help with capacity planning and accurate demand forecasting. When they know what the market expects, they can quickly move the vehicles to the areas with more demand and thereby bring down the operational costs.
To avoid risks, anticipate events and come up with solutions, now techs are using data. The data helps companies to use their resources in the right way for maximum benefits, and artificial intelligence helps them with it more accurate and faster manner.
You cannot talk about artificial intelligence without mentioning robotics. Even though robotics is considered as a futuristic technology concept, the supply chain already makes use of it. They are used to track, locate and move inventory within the warehouses. Such robots come with deep learning algorithms which helps the robots make autonomous decisions regarding the different processes that are performed in the warehouse.
Apart from robots, artificial intelligence is also about big data. For the logistics companies, Big Data helps to optimize future performance and forecast accurate outlooks better than ever. When the insights of Big Data are used along with artificial intelligence, it helps to improve different areas of supply chain like supply chain transparency and route optimization.
For AI in the logistics industry, coming up with clean data is a huge step, and they cannot implement without having such usable figures. It is not easy to measure efficiency as data comes from different sources. At the source level it is not possible to improve such data, and so algorithms are used to analyze data, enhance the quality of data, identify issues to attain transparency which can be used for business benefits.
When you are moving cargo across the world, it is always good to have a pair of eyes to monitor, and it can be best when it comes with state-of-the-art technology. Now you can see things in a new way by using computer vision which is based on artificial intelligence for the logistics.
Autonomous vehicles are the next big thing that artificial intelligence offers the supply chain. Having driverless trucks can take a while, but the logistics industry is now making use of high-tech driving to increase efficiency and safety. The significant change is expected in this industry in terms of assisted braking, lane-assist, and highway autopilot.
In order to achieve lower fuel consumption, better-driving systems are coming up which works on to bring together multiple trucks to have formations. Computers control such formations and they are connected with one another too. Such kind of configuration is said to help the trucks save fuel distinctively.
Impact of artificial intelligence (AI) in Supply Chain.
AI offers contextual intelligence.
AI provides the supply chain with contextual intelligence which can be used by them to reduce the operating costs and manage inventory. The contextual information helps them to get back to the clients quickly.
Companies make use of AI along with machine learning to get new insights into different areas which include warehouse management, logistics and supply chain management. Some of the technologies used in these areas are AI-powered Visual Inspection to identify damage and carry out needed correction by taking photos of the cargo by using special cameras and Intelligent Robotic Sorting to sort palletized shipments, parcels and letters.