Nowadays all industries are transformed by Artificial intelligence and Logistics is one of them.Logistics is defined as the management of the flow of products between different locations.
By using AI/Machine learning algorithms logistics companies are doing their automated tasks and complex tasks in a easy way to provide a good services for world wide customers and within their network.
Artificial intelligence offers a wide range of capabilities to the logistics companies from autonomous vehicles to predictive analytics. According to many surveys ,The Logistics companies are adopting AI technology for mainly four departments such as service operations,product and service development,marketing and sales and supply management.
Only these sectors will recover about 87% of AI adoption in logistics.Many researches and surveys are stated that logistics companies will generate $1.3-$2 trillion income per year by adopting AI into their processes.
Applications Of AI In Logistics:
Let discuss some applications of artificial intelligence in logistics
Logistics operations require significant planning for coordinating suppliers,customers and different kinds of units.Machine Learning models are providing the planning activities in which they are good at dealing with scenario analysis and numerical analytics,both are very important in planning.
Demand Forecasting is very important for logistics companies to estimate the demand and sales of their products.AI models will use the organizations real time data to forecast processes and efforts.Therefore, The AI-powered forecasting models are reduce the error rate compared to the traditional forecasting methods such as exponential smoothing method etc.
Warehouses are nothing but storing manufactured goods that are ready to distribute for sales.The implementation of AI in warehouses will give some tremendous benefits for logistics companies.AI technology has created a tremendous change in logistic warehouse.This will boost the supply chain management system.The warehouse robotics market was valued at $2.28 billion and is expected to $7.5 billion by 2022.
For example,Mopedo Logistics has worked on fully warehouse robotics to increase the speed of delivery and inspection.They are running their warehouse about 20,000 robotics to help them in supply chain and management.
In the process of packing we found many defects before AI is not implemented . They check it manually.The human eyes do not find some minor defects.By using AI techniques it finds very small defects and helps in product accuracy.By using computer vision technology everything is monitored and detected accurately.
This predictive maintenance is an analysis and prediction of machine failures in the factory by analyzing real-time data collected from IOT sensors in machines.The strong machine learning analytics tools enhance predictive analytics by identifying the IOT patterns.This helps the technician to take actions according to that.
Self-driving vehicles and drones:
The usage of AI in automotive is increasing rapidly,By using self-driving vehicles for transforming logistics it will decrease the heavy dependency on human drivers.Mopedo Logistics is planning to start their services by using autonomous vehicles like cyberbike this may launch soon in indian market.
Drones also play an important role in logistics operations.Especially for healthcare domain some medicines have very less life span.This will help to reduce the business wastage cost and prevent the investment for costly storage facilities.
By using the AI techniques in pricing systems it is helpful to get forecasting of demand and supply of products.Machine Learning algorithms are used in pricing software to get data from past purchases and used in further how the purchases are gonna depend in future.
Finding the best routes for delivery is also an important factor.By using the past delivery routes the machine learning algorithms suggest the easy route to deliver the product.It will also automate the manual office tasks.
Customer Service Chatbot:
Chatbot has created some tremendous change in customer services to clarify the queries of the users.This chatbot technology is used in logistics in replacement of call centres.Chatbot is providing services like to order the delivery and regularly update the tracking.Sometimes it will provide the FAQ’s for users also.This bots are used everywhere of the logistics operations.
Sales & Marketing:
In order to get best results from sales & marketing Artificial intelligence is used to forecast the sales demand and marketing trends and analysis.AI used in Email marketing.This will increase the automotive activities in logistics operations to reduce cost and time.
Therefore,Usage of AI in logistics can bring the best solutions to the users as well as wholesale sellers to reduce cost and investment for the products.AI is mainly applicable in the delivery section.