A decade ago, artificial intelligence seemed like science fiction. Today, it is a game-changing reality for almost every industry. The development of artificial intelligence in logistics is no exception. A recent McKinsey survey found that while sales and marketing departments are seeing the biggest revenue growth from AI, supply chains are experiencing the most significant cost benefits.
As the technology continues to improve, AI will play an even more central role in logistics. Learn how it’s impacting businesses now, what its role might be in the future, and how you can start capitalizing on it in your supply chain today.
How AI Is Changing Logistics
AI’s role in logistics goes far beyond crunching numbers. It’s actively reshaping the industry. Here are some of the ways AI is changing things for the better.
Forecasting
Forecasting is one of AI’s more significant contributions to supply chain management. AI can help companies predict market trends and product demand with incredible accuracy. Using algorithms and historical data, AI can help companies forecast seasonal surges and unexpected demand changes. Being able to accurately predict demand can help companies keep wanted items in stock while also preventing overstocking and stockouts.
Automation
AI-driven automation can help speed up supply chain processes and improve accuracy in areas like order fulfillment. More warehouses use AI-powered automation to handle tasks like sorting and inventory checks. AI can do these tedious jobs faster and reduce error rates. Putting AI automation to work also lowers costs while giving human workers more time to focus on complex tasks.
Routing
Efficient routing can help businesses deliver to customers on time while also lowering transportation costs. AI can help optimize routes, analyzing real-time data on traffic, weather, and variables like construction zones to create the most efficient routes possible. Companies end up saving on fuel costs, reducing travel time, and boosting on-time delivery rates, which is good news for both the company and the customers.
Analytics
AI can process massive datasets at lightning speed. With that data, it can offer insights that can help drive better decision-making. For example, it could identify logistical bottlenecks, predict potential breakdowns in the supply chain, or even send alerts when equipment needs servicing. With real-time insights and early warnings, AI analytics can prevent delays and keep things running smoothly.
Sustainability
Sustainability is becoming increasingly important to consumers, pushing it to the top of the to-do list for many companies. AI can help make logistics greener by minimizing fuel consumption on optimized transportation routes, reducing energy usage in a warehouse, or even improving packaging to reduce waste. Data analysis can help companies track their carbon footprints and find sustainable options that don’t impact efficiency.
What Lies Ahead for Artificial Intelligence in Logistics
We are only at the beginning of artificial intelligence in logistics. Its role is going to continue to expand. The logistics industry may begin to see more:
Self-Driving Vehicles
Autonomous trucks and delivery vehicles are already on the road, but we will likely see more soon. This could revolutionize last-mile deliveries. Self-driving technology could help companies deal with driver shortages, lower fuel costs, and speed up delivery times.
Warehouse Automation
AI-powered robots are hard at work in large warehouses, but their presence will become more common, even in smaller spaces. They are great for speeding up fulfillment and reducing errors in picking and packing.
Predictive Maintenance
AI can help predict when machinery and vehicles will require maintenance. These alerts can help reduce downtime but also cut expenses by picking up on maintenance needs before a machine needs total replacement.
Bring AI to Your Logistics With Beitler
There are huge advantages to incorporating more artificial intelligence into your logistics process. However, it comes with challenges, too. AI can be costly and complex, but the right logistics provider can help you implement it seamlessly. Beitler Logistics Services already has the AI solutions you need in place. With us on your team, you can access tools and processes that boost efficiency, reduce costs, and improve customer satisfaction.
Ready to see what AI can do for your logistics? Contact Beitler Logistics Services today to talk about how we can help you harness the power of artificial intelligence for your logistics.