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How Artificial Intelligence and Machine Learning Are Revolutionizing Logistics, Supply Chain and Transportation The potential of AI and Machine learning is not only enhancing everyday business activities and strategies but also is streamlining the logistics on a global scale

By Gurcharan Singh

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Improved performance is of prime concern for any business or enterprise. Together, AI/Machine learning technologies are viewed as the most impactful technology given its wide applicability and promise of addressing complex business problems across the value chain. Logistics, initially, was one aspect of management but in this era of the profound transformation, it is becoming one of the most disruptive fields across the globe. Leading companies have already started using the Artificial Intelligence and machine learning to fine-tune core strategies such as warehouse locations, as well as to enhance real-time decision making related to issues like availability, costs, inventories, carriers, vehicles and personnel.

The potential of AI and Machine learning is not only enhancing everyday business activities and strategies but also is streamlining the logistics on a global scale. With the increase in the volumes of data in supply chain and logistics, the companies now are focusing on becoming more sophisticated by adopting efficient processing solutions which not only will help them to analyze the huge volume of data but will also give accurate results of the analysis and delivery information.

The use of technologies not only will replace manual errors and reduce time consumption from performing tedious tasks but will also benefit the sectors in the following ways:

Cost Effective and Responsiveness:

Capabilities of AI are ramping up company efficiencies in the areas of predictive demand and network planning. Having a tool which has the capability to collect data from circumstances and provide accurate data and analysis will make the company more proactive and thus will reduce cost and enhance responsiveness. Example- In a manufacturing company, manual record of indent generate and placement of vehicle where no standard algorithm to calculate the required vehicles for the dispatch plan, AI can suggest the exact vehicle number with minimum freight.

Enhancing supply chain management productivity and planning:

AI can develop supplier preference and improve the effectiveness of transporters relationship control. In today's marketing world AI and Machine learning can provide unmatched analysis of vehicle load ability, delay, detention determination and best instant availability of vehicles which, in turn, helps the companies to determine new factors that will affect the performance and growth of their enterprise.

Improve Transporter selection and increase the effectiveness of Transporters relationship management:

In Today's environment, improving supply chain execution and leveraging the supply base through effective transporter relationship with the supplier has become more critical than ever in achieving competitive advantage. With the use of AI, technique companies can analyze transporter-related data such as on-time in-full delivery performance, audits, evaluations, and credit scoring and live vehicle tracking to apply for ultimate decisions concerning certain suppliers which in turn will develop transporter and will improve the effectiveness of supplier and transporter relationship management.

AI helps in Enhancing Customer Experience:

AI is making inroads into enhancing customer service and the overall customer experiences. The technique helps the company to revive associations and relationships between logistics provider and consumers by offering then personalization. As AI assistants become more complex, it can now track parcels and get shipment data using the voice assistant thus performing a vital role in all the logistics and manufacturing companies. With the use of technology, one can manage many customer-focused businesses at every level of the supply chain, including approach receipts, sales, executive duties, consumer service and more.

AI Improves Factory Scheduling:

AI-driven predictive maintenance goes beyond historical analytics. It helps logistics and shipment companies to predict future scenarios, allowing them to assess a number of possible outcomes and decide an appropriate course of action. This entire process requires lesser human intervention compared to traditional maintenance processes thus helping the companies to increase efficiency and can bolster profits.

Gurcharan Singh

Founder, LogixGRID Technologies

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