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The Role of Artificial Intelligence In The Logistics Industry


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Over the last few years, technology continues to change and advance at such a rapid rate, causing businesses, organizations, or humans in general to adapt. Today, one of the most recognized technologies include artificial intelligence or AI. And recently, AI has been taking quite a progressive and significant role in the logistics industry. As demands constantly rise and the world’s need for the logistics sector’s requirements get even more complex, tech-driven applications, systems, and software have already stepped into the picture to streamline logistics on a global landscape.

Being said that, intelligent warehousing has become more than just an option but rather a necessity. Warehouse spaces in different parts of the world are expected to adopt technology as part of its daily operations so as to improve overall warehouse performance, efficiency, and productivity. Not to mention, accelerate customer experience. As important it is to identify what artificial intelligence is, one must also know what it’s for and how it plays an important role in the logistics industry.

What is Artificial Intelligence?

In computer science, artificial intelligence or AI refers to intelligence demonstrated by robots or machines. This is in contrast to the natural intelligence humans already display.

AI allows robots, machines, or technology in general to perform human tasks such as visual perception, speech recognition, voice assistance, decision-making, and translation, among a few others. AIs are also ideally characterized to possess the ability to take actions and rationalize, which gives that of a better chance of achieving a specific goal in shorter periods of time.

The Role It Plays In The Logistics Industry

Warehouse Automation

One of the sole purposes and primary goals of AI-implementation and integration in the logistics industry is the automation of time-consuming processes in order to save money and keep customers happy. Manual labor can possibly cause damages, delays, and errors resulting in downtime and product replacement. In turn, customers are kept waiting for their packages to arrive, shrinking your chances of achieving satisfactory customer service.

AI technology changes the way many warehouses operate, especially in terms of data collection, inventory management, order fulfillment, etc. One of the best features of AI automation is enabling warehouse facilities to adjust and modify in-demand items. This is due to the AI’s ability to predict demands for certain products. In turn, it also improves a business’ overall transportation and order fulfillment costs.

Vehicle Automation

Automated vehicles are also a significant factor when it comes to AI-powered facilities. Self-driving cars or transportations around the warehouse can ultimately save time and money and reduce accident rates within the area. With warehouse ground vehicles and drones, your business processes are rest assured in good hands with much shorter time needed to complete all tasks and operations for the day.

Smart Roads

Safety is of utmost importance, and that’s one of the many things AIs can guarantee to both consumers and the logistics sector. AI is now being used in highways to make way for smart roads. Smart roads are AI-powered highways equipped with sensors that help monitor the road and sense the vehicles on it.

These roads are then connected to the Internet, notifying motorists through their mobile phones of upcoming traffic jams, accident-prone areas, and on-going construction sites. In turn, this helps provide significant and valuable information to businesses in the logistics industry who spend most of their time on the road (e.g., delivery and order fulfillment).

Back Office Operations

Back office operations are crucial for the logistics sector. If anything, it’s crucial for any business. And with technologies like AI implemented, employees can speed up processes and improve productivity. For one, there are data-related tasks that repeat entirely each day, which can also be automated. In turn, AI-integrated companies can save time and money while also increasing productivity and efficiency. Human errors will then reduce over time as AIs also help replace or assist employee categories like accountants and human resources.

Improve Customer Experience

Artificial intelligence in the logistics industry has one quite obvious case, and that is to help improve customer experience. As mentioned, a series of damages, delays, and errors can possibly occur as a result of manual labor. But with AI, less of these damages, delays, and errors are likely to happen, which, in turn, also reduces downtime and enables order fulfillment employees to deliver packages earlier or just right on time.

Also, algorithms can help predict trends, purchasing habits, and search history. As a result, companies that belong in the logistics sector can tailor, customize, or personalize their marketing and promotions with a consumer’s specific needs and wants, exceeding customer expectations.

Wrapping Up

All in all, artificial intelligence integration and implementation can and will be beneficial to the logistics sector. With technology increasing its effectiveness and accuracy continually, it’s no surprise that warehouse facilities will thrive in no time. Not to mention, AIs also significantly help eliminate time-constraining processes and added costs.


Author’s Bio:

Angelo Castelda works as a contributor for a news magazine in Asia. On his free days, he likes to read books about the logistics industry and warehouse management. He also gets frequently invited to schools and universities to hold talks about the supply chain system and warehouse operations.

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