Why smart logistics? And now?
Now is the perfect time to apply artificial intelligence (AI) to logistics. Due to technological breakthroughs, the industry has never seen so many available and affordable technologies. Companies that choose not to use AI risk being eliminated in the medium term, as AI will be a key component of the future of logistics.
Logistics companies are uniquely positioned to benefit from virtually every aspect of the supply chain by adopting artificial intelligence. Many companies are undergoing digital transformation, updating their software and hardware to prepare for the Logistics 2.0 era. AI can make business processes proactive rather than reactive, helping the industry redefine them. We can predict the entire process in advance; the process will become autonomous, and standard services will be personalized. Like many other industries, AI can be applied both internally (back-end) and externally (front-end).
How can artificial intelligence be used in the background?
Artificial intelligence offers a unique opportunity to save time, reduce costs, and improve productivity and accuracy. This is due to cognitive automation, which will perform routine tasks, often freeing up time from employees' more urgent work. These daily tasks will be automated by systems thanks to the combination of RPA (Robotic Process Automation) and AI.
These automated routine tasks can be
Gathering Financial Information: Logistics companies typically rely on numerous third parties to perform core functions of their operations. AI can handle all necessary financial data, such as invoice amounts and other types of account information. Artificial intelligence can optimize time and money by processing and extracting financial information. The data will be displayed in a convenient online interactive dashboard.
Managing Customer Information: Continuously updating customer information is a crucial task for any large company. Customer clustering and segmentation will allow you to select the best rates and personalize services to increase revenue.
Customs clearance: Customs is typically a lengthy and tedious process. For every logistics company, providing accurate data and documentation, declaring goods, having customs authorities inspect information, and determining the final dutiable value for each declared product is a lengthy but necessary process. Artificial intelligence can process all documents in seconds, rather than checking each document individually.
Predictive logistics: Modernizing artificial intelligence can help the logistics industry revolutionize its operating model, moving from reactive to proactive and predictive.
Predictive network management: AI can improve the efficiency of logistics operations. For example, DHL has developed a program that can predict air transport delays. This helps the U.S. company initiate mitigation measures to prevent flight delays.
Intelligent route optimization: This is essential for any logistics company that knows how to find the most efficient, fastest, and most suitable route for each customer. This reduces costs, saves time, and increases customer satisfaction. Deutsche Post uses SmartTruck, a company that has developed its own real-time route algorithm for all its operators and truck drivers, enabling them to deliver each package in a short time.
While artificial intelligence is one of the most transformative technologies of the 21st century, its impact on current markets remains to be seen. We are currently at the beginning of the adoption curve for AI and related technologies, and its long-term advantages will soon become apparent.
That said, the capabilities of artificial intelligence indicate that its potential and societal impact are far from being fully realized. AI technology is transforming how businesses perform mission-critical functions, from changing the way we work to driving business growth.
