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The role of Artificial Intelligence in logistics

An illustration of a robotic hand holding an AI network brain, symbolizing the role of Artificial Intelligence in logistics.

The new era of technology brings us amazing discoveries, especially in the field of artificial intelligence. AI development has become an ongoing trend in many industries. Today we want to talk about the role of artificial intelligence in logistics. Let's see how these advancements affect the sector and help companies provide better service.

The logistics industry is rapidly changing

COVID-19 brought us a significant setback when it comes to the logistics industry. Nevertheless, the new AI technologies are helping companies to push back. The innovations we want to talk about are:

  • Autonomous vehicles; 

  • Warehouse automation; 

  • Smart roads; 

  • Demand prediction; 

  • Back-office processes and operations.

AI plays a crucial part in these sectors.

The benefits of autonomous vehicles

Here is a perfect example of how AI can bring fantastic things to the logistics industry. The idea behind this concept is to have driverless vehicles used for goods transportation. They can operate both with and without the driver.

A photo of a city showing a smart network.
Autonomous vehicles will bring many changes in the future.

The downside to this idea is that current regulations do not allow the use of driverless vehicles for safety purposes.

We have all heard about driverless cars, but artificial intelligence in the logistics industry also allows automating other vehicles for transporting goods, such as vans, trucks, or buses. Autonomous vehicles can work on their own or with a human driver. This is mainly because the technology is not yet at that point where it can analyze situations on the road better than a human driver. Nevertheless, this is all going to change one day and unleash an abundance of productivity. The advancement of AI technology will give us driverless vehicles. As a result, we will see a substantial reduction in the number of accidents, a lower carbon footprint, and a reduction in costs and time usage in the industry.

Warehouse automation with AI is a game-changer

AI is heavily used as a tool to automate warehouse processes successfully. We need advanced logistics solutions to keep up with the rising demand of customers buying behaviors. That's where AI shines. Demand prediction is a large area in the logistics industry. Thanks to the advanced AI software, we can now collect and analyze various data and develop detailed demand predictions. As a result, the efficiency increases, which directly affects the bottom line.

Warehouse automation benefits from AI in many ways. An automation system already handles many routine tasks. The costs of running a warehouse are going down, and the overall process is improved.

If we look at the current situation, we can organize a warehouse in a better way, thanks to AI. Demand prediction helps control the stock, arrange transportation, and manage inventory.

As AI improves, we will have quality control systems that will be able to work on their own, without the need for a human.

How smart roads are changing the industry

Even though we associate roads with the logistics industry, almost all industries use some form of transportation. This is one of the areas where AI will have the most impact.

We were able to get in touch with Best Movers in Florida, the leading experts in the moving industry. According to them, one of the most common problems we face today is road safety and delays in shipment deliveries.

An image showing different forms of transportation via road, air, and water
AI will improve all forms of transportation over time.

Thanks to AI, we can now build smart roads and make both areas better. There is a group of companies investing in building smart roads, all to improve overall safety, reduce delays, and improve the transportation process. The system works by using solar panels and LED lights to change weather conditions. Heating roads will prevent them from becoming slippery during rain or snow. LED lights signal the change in weather conditions monitored by an AI system. Furthermore, some roads use fiber optic sensors that can sense the volume of traffic jams. Additionally, they can signal if a vehicle goes off the road.

There is no doubt that advanced AI systems have a huge role to play when it comes to smart roads. This will be a significant change, not only for the logistics industry but also for general road safety worldwide.

Demand prediction and why it is necessary

We have already mentioned demand prediction in a previous section about warehouse automation, however, this area needs more discussion because we want to underline how important this is. The demand dictates everything when it comes to the logistics industry.

Just look at one warehouse as an example. Hundreds, if not thousands, of boxes are stacked on shelves. Some items are in the back; some are in the front. Warehouse organization directly affects the efficiency of the service. If warehouse employees have all the necessary items in the front, they don't have to spend much time searching for the boxes they need.

Demand prediction can tell us what the current need of the clients is. Warehouse managers can organize warehouses in advance and make items in question more accessible thanks to that information. Furthermore, you can always re-stock your inventory on time.

Additionally, warehouse organization also affects transportation optimization. The goal is to create a better customer experience and reduce delivery time and lead times.

Making back-office operations better

A lot of companies suffer from manual work and redundant tasks. This is a massive issue in the logistics industry, and an AI-based system is a fix we all need. There are many back-office tasks related to data management that can be improved, by reducing mundane and repetitive tasks that can be prone to human error. AI technology will significantly reduce human error in the future.

A person drawing a process chart with a marker
Back-office processes dictate the rest of the job.

Artificial Intelligence in logistics is the key to a better future

The role of artificial intelligence in logistics is to improve the entire industry. Let's not forget that logistics is the backbone of all other sectors. Everyone uses and relies on transportation to get the supplies necessary to run their businesses. Investing in AI technology to improve logistics is the key to a better future, not just for the logistics industry but for everyone.


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