Artificial Intelligence in Logistics: How AI Will Improve the Process

06 February 2023

Artificial Intelligence In Logistics 696x464

​The pandemic has demanded a greater use of technology in all industries across the board. The field of logistics is no exception. Nowadays, AI (Artificial intelligence) is being applied in every industry, including logistics. Below we will discuss how artificial intelligence will be applied and will contribute to the development of the logistics industry. The main purpose of applying AI in the logistics industry is to reduce time-consuming actions and save money.

Demand Prediction

There is a significant amount of coordination and planning among suppliers, customers, and different departments in logistics companies. Using AI, we can use real-time data, which will improve accuracy in demand prediction. It will help manufacturers optimize the number of dispatched vehicles and will reduce operational costs. Also, local warehouses/ retailers can reduce the cost of holdings.

Optimization of Sales and Marketing

AI offers diverse aspects for sales and marketing. Some examples include providing an analysis of customer behavior and using predictive analytics to better understand what a company’s customers are likely to do next. Freight forwarders can monitor market changes closely, so AI helps them stay ahead of the competition and make data-driven decisions.

Real-time Decision Making

Finding the best carriers, transporters, and optimization routes at a competitive cost is an important and time-consuming task. However, using AI, freight forwarders can instantly utilize thousands of datasets to suggest the most cost-efficient carrier and route.

Automated Offices

To maximize the efficiency of document processing, document automation technologies can be a satisfactory solution to handle documents by automating data input, error reconciliation, and document processing. Also, with these technologies, businesses can automate several back-office tasks, such as:

  • Scheduling and tracking

  • Report generation

  • Email processing

  • And more office tasks

A Better Customer Experience

With big data from AI, freight forwarders are able to have a better understanding of customers’ behavior, preferences, interests, timing, etc. Minimizing human errors will speed up the shipping process as well as reduce cost.

Source: morethanshipping.com