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Top 5 Benefits of AI in Logistics

Artificial intelligence possibilities are truly endless, and every year AI is used in an increasing range of industries. In this article, we’ll talk about how artificial intelligence is improving the logistics industry. Without further ado, let’s get started.

Artificial Intelligence Usecases in Logistics

Reputable sources firmly state that companies can generate anywhere from $1.3 trillion to $2 trillion a year if they integrate artificial intelligence into their workflows.

AI in the logistics industry can significantly save time and money by optimizing supply chains and work processes. This fact is confirmed by such giants as Google, Amazon, and Intel, which invest fabulous sums in artificial intelligence development.

In this article, we will look at five examples of how AI is used in logistics.

Automated Warehousing

Automation capabilities of AI allow to significantly optimize all warehouse operations, increase their efficiency, and gain more profits. One of the most common cases of using AI in warehouse operations is forecasting certain goods’ demand. Thanks to these predictions, a part of the goods can be shipped to regional warehouses, reducing transport costs.

Another example is the retail company Ocado, which uses an AI-controlled robot in its warehouse operations that can fulfill 65,000 orders over one week.

AI Controlled Vehicles

Now is the time to mention what might have seemed fantastic before. However, AI development made it possible to begin to implement it into vehicles and use its capabilities in logistics. Automated vans, trucks, buses can significantly reduce costs for the logistics industry and improve supply chains. Artificial intelligence doesn’t make mistakes, doesn’t need to eat, drink, or sleep. All of these are huge advantages that push companies to use automated transport in their workflows.

One such company is Waymo, which in 2018 first launched a self-driving taxi service in the suburbs of Phoenix, Arizona. According to the company, the next step in their development will be the creation of driverless trucks.

Smart Roads

Cars have become smart, so why not make the roads they drive smart too? This is another example of combining the capabilities of artificial intelligence and logistics. And companies are already working in this direction.

For example, Integrated Roadways signed a five-year contract with the state of Colorado to test on Colorado’s roads a system of its own development called Smart Pavement. This system connects all vehicles on the road to the Internet and then provides real-time updates on traffic jams, road conditions, accidents, and more.

Back Office AI

Speaking about AI in logistics, one should not forget about the automation of back-office operations. This automation often consists of AI and RPA (Robotic Process Automation), which significantly improves employees’ work quality. One of the branches of such automation is Cognitive Automation. The main goal of this branch is replacing office workers (for example, accountants, HR employees) with robots. This can significantly reduce spendings on employees for a business.

Leverton is a Cognitive Automation company. The company is focused on building artificial intelligence applications for logistics companies. For example, Leverton software can be trained to automatically extract the required data from documents, invoices, and contracts.

AI Enhancing Customer Experience

Artificial intelligence occupies a huge niche in retail automation. For example, forecasting algorithms are already successfully used to calculate the future demand for goods, which allows you to control stock, make timely additional purchases, and avoid reputational and monetary losses.

Another way is to integrate AI into e-commerce stores, thereby providing shoppers with a personalized shopping experience by showing products based on interests and search history.

For example, shopping giant Amazon has partnered with DHL Parcel to create a chic, personalized shopper experience. Owners of Amazon Alexa speakers just need to voice to ask, “Alexa, where is my package?” and DHL Parcel will provide all parcel’s details.

Promising AI Startups in Logistics

As a small addition, we will name three of the most promising startups that use artificial intelligence to leverage logistics.

  • 6 River Systems. This startup’s main pride is the wirless Chuck robot that can interact with the warehouse Management System. Chuck can transfer goods from place to place, count them, pack, etc.
  • Valerann. The main focus of this startup is the implementation of AI in transportation. A system based on artificial intelligence covers the entire road and collects information about traffic, road surface conditions, weather conditions, which allows drivers always to be aware of the situation on the road.
  • Convoy. This startup is dedicated to integrating artificial intelligence into the supply chain. Their software is designed to find the right trucks for companies that need fast delivery.

Wrapping Up

We have listed the rich opportunities for introducing AI into logistics. And if you are still thinking about introducing artificial intelligence into your workflows, it’s time to go towards AI implementation because it has become more useful for business than ever before.

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Vitaly Kuprenko

Vitaly Kuprenko is a writer for Cleveroad. It’s a web and mobile app development company with headquarters in Ukraine. He enjoys writing about technology and digital marketing.

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