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  • Writer's pictureYasser Allam

How Logistics Industry Can Benefit from AI

As artificial intelligence continues to evolve and develop, the impact it has on various industries is evident. The logistics industry is no exception, as technology can help logistics companies improve their operations and efficiency. With this in mind, here's why AI can be a real game-changer for them:


Route optimization:


AI allows logistics companies to create efficient routes for their drivers to follow. The more efficient the routes, the better they can cater to their customers' needs.

Trucks and other vehicles are often assigned different routes by their operators to ensure their vehicles arrive at their final destinations on time. This process of assigning routes can often be complicated and inefficient. With AI, drivers don't have to keep track of these routes by hand, which makes them more efficient and less prone to human error.


Real-time routing:


Real-time routing is another advantage AI provides for logistics companies. With it, they can track the whereabouts of their trucks and other vehicles in real-time. This allows them to optimize their routes in case of any unforeseen events. In the past, such events would necessitate changes to routes, which could be time-consuming and inconvenient.

Moreover, this information can also be used to create insights into the performance of individual trucks and drivers. This information can be used to improve operations and make better decisions about where to allocate resources.


Automation:


AI allows logistics companies to automate various repetitive and time-consuming tasks. For example, a driver can use an app to locate and assign incoming packages, eliminating the need for a human operator to assign and track them.

Similarly, a warehouse can be automated to perform certain tasks such as receiving deliveries and putting the products on shelves

This reduces costs and minimizes the number of manual errors. also, automating these tasks means the driver can focus on driving the truck and not have to perform any manual tasks.


Utilization:


AI can be used to enhance the planning and visibility functions of logistics companies. One of the most important logistics functions is making efficient use of resources. This includes materials and staff. With AI, logistics companies can plan and keep track of their resources and optimize their use. AI makes this process faster and more efficient, ensuring greater resource availability.

This can be especially beneficial in cases of a shortage or when demand is high. By having a better understanding of how resources are being used, companies can make more informed decisions about where to allocate them.

In the long term, AI may even allow logistics companies to completely automate their operations. This would free up valuable resources and allow them to focus on other strategic objectives.



Forecasting:


Data analytics and machine learning can be used to help predict future demand patterns. By monitoring past trends and sales data, logistics companies can forecast how much inventory they need to prepare for certain times of the year. As a result, inventory can be kept to a minimum, and productivity can be increased.


In addition, AI can be used to detect patterns in customer behavior. For example, if it becomes clear that certain products are in high demand, a company may decide to increase the production of that item. This would be done through the use of predictive analytics and machine learning, which would allow for increased accuracy in predicting customer demand.


Bottom Line


Overall, AI has the potential to save companies a significant amount of time and money. By using it in conjunction with other logistics functions, companies can optimize their operations and improve their bottom line. If you're looking to make your logistics operation more efficient and cost-effective, then AI is a powerful tool that can help you achieve those goals.


Are you looking to enhance the visibility and planning functions of your logistics company? AI can help!


Softec Technologies is a leading provider of AI-based logistics solutions that empower companies to achieve significant success.

In this case study, you'll learn about how AI is being used to improve forecasting and planning in a logistics company. Download now for free.

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