Artificial Intelligence is already on its way to enhance users’ life. It is picking up momentum in businesses as well. Everyone is aware that AI is spreading the magic in technology, healthcare, and finance world. But we overlooked the one business that is/can benefit the most from AI. Logistics and supply chain management.
Logistics and supply chain management looks after the entire process taking place between storing goods to selling to deliver on time. It may seem like a short process, but only a person working in the industry understand the lengthy procedures of logistics and supply chain management. Hoards of data take place during the process, and lots of people are involved in keeping things in harmony with consumer requirements.
AI helps businesses in collecting data, perform analysis, and automate the process via machine learning and natural learning processes. It can aid logistics and supply management system in shortening the process, increase the speed, automate the procedures, and deliver high-quality performance.
Image Source: Business Insider
Let’s explore more on how AI can scale up the logistics and supply chain management system.
Benefits of AI for logistics and supply chain management industry
AI is fundamentally changing the way goods move around from one corner to the other, from assumptions to accurate analytics and from human-related tasks to automating tasks via robotics. Here are the detailed benefits of AI for logistics and supply chain management as we know it:
1. Accurate forecasting
One of the most challenging jobs of logistics and supply chain management is riddling with uncertainties and making assumptions based on loads of complex data. It’s like seeing the flames of fires and make prophecies of what’s going to happen. Just like prophecies, such assumptions have a 50-50% chance of success and failure. False assumptions result in losses which translate to a decrease in profit.
AI is home of data. It not only collects data but also manages it in a way that makes analyzing as easy as hearing a story.
Here’s how AI helps with accurate data-based forecasting:
Image Source: Forbes
AI technology allows you to track and measure all factors included in-between the demand, production, and the final supply. End-measurements leads you to accurate forecasting of what’s in demand and how to accomplish it without waste.
2. Better planning and scheduling
Logistics and supply chain management requires thorough planning and scheduling of assets (material, equipment, labor) to complete the production process. It makes certain that the goods are delivered on time. It is a time-consuming process as a single mistake can shake the balance of demand and supply on time.
AI enables companies to keep an eye on the entire process without missing any point. With AI technology, businesses can track the demand for goods and exact material needed for the same to smooth out the production process.
DHL, a well-known courier company, sets a perfect example of AI-based planning. The brand analyzes 58 parameters to build a machine learning model. It allows the brand to predict whether the daily transit time to going to rise or fall for a week in advance. Planning and scheduling go easy and smooth with the help machine learning predictions.
3. Robotics automation
Talk of AI never completes without the debate on Robotic.
“As per research estimation, sales of warehousing and logistics will reach $22.4 billion by 2021.”
Robots possess the capability to locate, track, and manage warehouse inventory. They take care of oversized packages at distribution hubs. People assume that robotics are here to replace humans. But it is more like they are here to reduce human errors. Tracking is a data-enabled task where humans often make mistakes. To avoid misunderstandings, they work slowly, checking every detail multiple times to assure everything resides at the right place. With robotics in charge of tracking and measuring, mistakes decrease and hence, speed increases.
For e.g., an intelligent, fearless, robot will understand and sort out letters, parcels, and shipment procedures at high-speed. An AI-powered visual learner robot takes photos of cargo to inspect damages and suggest an action to rectify them.
4. Reduced inventory and operation cost
Accurate forecasting illustrates you well on what to expect and what to avoid. Here again, AI tools give you aid in using less number of vehicles for transportation and decide their final destination to the most demanding locations. It reduces operational cost and increases the effectiveness of transportation.
On the other hand, AI’s accurate data forecasting makes sure that all orders are fulfilled on time. And inventory is flowing smoothly in the veins of logistics and supply chain management.
Fizyr’s robotic solution is worth discussing here. The Dutch tech company installs deep learning in robots, enabling them to take auto-decision based on analysis, counting, picking, and manipulating goods. Fizyr’s solution allows robots to identify the type of packet in less 0.2 seconds and move the goods to the desired location. It saves enormous time on inventory management and reduces operational costs as well.
This image from Fizyr illustrates well about how robots work in picking process:
These are the fair amount of benefits to look-forward when you finally made up your mind to move towards AI. A multitude of technologies are on their way to reveal unforeseen obstacles and their effect on logistics and supply chain management. They are coming with a permanent solution to issues and add non-stop growth factors to your business.
Make it soon before your competitors win the deal.
Meanwhile, let’s have a brief look at how AI is adding a boost to logistics and supply chain management industry.
How is AI changing the logistic and supply chain management for good?
1. Enhanced productivity
“AI is the Secret of Productive Energy”
AI analysis helps you dig out new factors affecting the overall performance. You can learn,
implement, and strengthen the elements to increase the quality performance while eliminating factors contributing to lower quality. For e.g., determining fraud with the help of AI and replacing it with a stronger system that delivers real-time data is a surefire way to increase security.
2. Improved customer experience
With an increase in speed and performance, customers will receive goods on time without any damage. You can give them the liberty to track their order which makes them feel like a part of your system. As a result, an improved customer experience increases the number of repeated customers and give rise to word-of-mouth branding.
3. Reduced human error
AI’s automated technology reduces data errors and boost decision-making process. Hence, employees become able to operate faster without worrying about wrong decisions. Human errors decreases and production cycle takes less time to complete. Then you get plenty of time to produce more and meet the demand-supply zone efficiently.
Ready to embrace the future?
Better you should. Start from today. Note down all parts of logistics and supply chain management. Analyze each one at a time and think about how you can insert AI to fasten the process without affecting the quality. Take a clue from the above examples and hire an AI intelligent agency to take the load off your business’ shoulder.
And don’t forget to share your upcoming AI plans you imagined while reading this article.