Demand for deliveries and shipping has never been higher. With services like Amazon and post-pandemic buying habits, consumers and businesses have grown accustomed to next-day delivery, priority shipping, and other logistics services.
As a result, many supply chain and logistics businesses have turned to AI improvements to find solutions to issues such as rising fuel prices and demands for faster delivery. But how can AI and automation in logistics reshape the industry and provide much-needed support to the supply chain? We’re going to look at the automations being used in the industry and how they can be used to improve efficiencies, reduce costs, and make smarter decisions.
Office automations in logistics
Back office work is the easiest, and usually most cost-effective area to start automating. With most systems working across PCs and networks you, can implement AI and integrate it into your existing system to reduce tasks and free up time for more strategic decision-making. Here are some of the ways AI can change back-office operations in logistics.
Document processing
One of the easiest and most efficient ways to improve order processing is to reduce the amount of paperwork. AI solutions can be implemented in logistics firms to automate invoicing, loading bills, rate sheets, and more. This can also aid communication between buyers and suppliers, providing up-to-the-minute updates for ultimate transparency. This allows your team to focus on strategies and bigger-picture thinking instead of getting bogged down in time-stealer tasks.
Planning and forecasting
AI tools are great at compiling and understanding data. In logistics, this can be vital to better route planning and trade forecasting. By optimising with a trusted AI tool, you can improve journey times, reduce the number of trips, and ensure you have the right number of vehicles for the busier seasons. Additionally, you can minimise waste by trimming the fat to lower your fuel costs even further and reduce your carbon footprint.
Pricing and management
Another benefit of AI’s ability to understand data is the control it gives you over pricing. With automation in logistics, you can forecast how busy a season will be, plan the routes accordingly and create dynamic pricing models to cover costs. You can also make use of freight management tools to optimise existing routes and change them to avoid traffic congestion or find a more direct path.
AI tools can also be used to add transparency and added service with tracking applications that provide you and the customer with instant updates on the status of their cargo.
Review and improve
Much like the human mind, AI tools learn through practice and repetition. Once you’ve used AI to plan and manage a route, you can then generate reports to review where time or fuel can be saved. This information can be vital to staying competitive in a busy market and should be a key component of any AI-focused logistics integration.
Tools like RPA are particularly effective in this regard and can easily auto-generate reports, analyse the findings, and send reports to relevant stakeholders, all without any human input.
AI and warehouse automation
Automation in the warehouse can be more costly, especially at the front end, but it has the potential to revolutionise operations. Whether used as a QA tool, safety check, or a robotic labour force, AI in the warehouse has the potential to change the face of logistics. Let’s take a look at some of the ways automation in logistics supports warehouse tasks.
Robotic advancement
One of the most well-publicised advancements is robotics. Often seen as villains in sci-fi or as a threat to the workforce, robots are misunderstood and can be employed to help teams rather than replace them. Either for fetching or packing items, checking quantities, or allowing you to operate 24 hours a day, robot advancements have only been improved with AI and we would expect to see this have a huge effect on the global logistics industry.
However, it may be a few years before we see these systems become commonplace. The technology is still in its infancy and as such warehouse robots can be incredibly expensive. This means until the technology becomes more easily accessible, we’ll only see the likes of Amazon using robots in their warehouses.
Safety and damage detection
With the sheer volume of products that move through a warehouse, it can be difficult to spot every damaged product. If one does make it to the customer it can result in unsatisfied customers, a loss of trust, and potentially a loss of revenue. With advanced detection systems, you can run all your products through tools designed to inspect boxes or pallets and raise an alert when it encounters issues.
This can then be managed by logistics managers to ensure products are handled correctly and safely. This advancement supports quality assurance as well as your own workers’ safety and can form part of a vital AI integration to improve your supply chain services.
Safety and maintenance
As we touched on above, having eyes on your warehouse 24/7 means you can keep on top of any issues. This goes for maintenance and safety too as sensors can be used to collect data from machines and analysed to predict potential failures before they happen. This can help you plan out maintenance more efficiently and reduce the risk of injury due to malfunction.
What’s on the horizon?
The Hollywood image of humanoid robots and supercomputers is the first thing that comes to mind with AI but the truth is AI is already a central part of how we work. From emails and paperwork to analysing data, automation is a vital tool to improve efficiency, reduce the workload on your team, and improve service delivery.
If you’d like to learn more about cutting-edge logistics and how you can get the inside track, then sign up for Multimodal 2023 and discover the UK’s biggest logistics and supply chain event. Packed with exhibitions and seminars, this event is not to be missed and is perfect for networking, learning new skills and supercharging your business. For more information on the event, have a look here. Alternatively, if you’d like to attend or exhibit yourself, register today and discover the benefits of one of the UK’s most popular logistics events.
