What areas of logistics can be improved with AI?

With each passing year, the use of artificial intelligence is becoming more widespread. The list of its applications seems to be endless. Therefore, AI in the logistics industry can enhance many operations. Whether you are involved in transport, warehousing or freight forwarding, you should explore the possibilities of this technology.

What opportunities does AI bring to the logistics industry?

Logistics is like a circulatory system through which an entity can operate at full capacity. This allows the necessary resources to be delivered to the right places at the right time. Artificial intelligence increases this efficiency so that, using the same resources, work is done faster and more accurately.

If you're thinking about using AI, it's worth looking at this technology holistically. Logistics touches many areas of a company, so modern software should be based on data from different departments. This gives you a 360-degree perspective on the supply chain and available resources.

So, how can artificial intelligence help the logistics industry? Here are some possibilities:

• automation of repetitive tasks,
• access to real-time data,
• mass analyses and reports,
• customer service support,
• optimisation of logistics processes,
• coordination of people and equipment,
• demand forecasting.

The examples listed are just a fraction of the many applications of AI in logistics. This technology can bring tangible financial benefits even when used in core areas only. However, thinking of such software as a scalable system for long-term development is useful.

Automation of repetitive tasks

Automation is one of the most important arguments for investing in artificial intelligence. Properly configured, the system can perform routine tasks such as entering data, creating reports and conducting multiple calculations simultaneously. In a more advanced version, you can carry out logistics processes without interruptions using industrial robots and the Internet of Things (IoT).

This allows work to be done more quickly and with fewer errors, reducing labour and energy costs. Automation also increases productivity, delivery speed, and warehouse order volumes. By using AI in logistics, you can direct people to perform more complex or decision-making tasks. In simple and repetitive activities, the software will do just as well.

Customer service support

Here, access to real-time data plays a major role. Based on this data, we can create, for example, a chatbot or voice assistant to answer frequently asked questions such as 'When will my parcel arrive?' or 'What is the status of my order?'. This use will certainly be appreciated by customer service centre consultants, who will be able to deal with more complex queries. Moreover, sending SMS, email, or mobile app notifications based on specific events also helps you communicate with customers.

Optimising logistics processes

Most managers try to make decisions based on data. This approach makes it possible to improve logistics processes continuously. Machine learning software can still improve this by telling you what areas could work more efficiently.

For example, AI in logistics can help you with:

• Route optimisation – shortening delivery times, reducing fuel consumption, and updating the route based on real-time conditions.
• Increasing loading capacity – better use of available pallet spaces in vehicles.
• Removing bottlenecks in the warehouse – excluding delays and operations that conflict with each other. Faster response to errors.
• Better warehouse organisation – arranging commodity and warehouse space to reduce picking times.

Demand forecasting

Demand forecasting is another example of warehouse optimisation, but it is so important that we dedicate a whole paragraph to it. By combining the warehouse management system (WMS) with historical sales data, you can forecast the demand for a particular commodity much better. Purchasing staff usually do such analyses for the best-rotating products. With AI, you can predict future demand for hundreds or thousands of SKUs. This translates into better stock management and will allow the warehouse to prepare for seasonal sales peaks. With this knowledge, you can also maintain a smaller stock, increasing your company's liquidity.

AI software development in logistics

The backbone of the operation of any warehouse is a well-adapted WMS. However, this may not be enough at some point, and the warehouse will reach its maximum capacity. Before this happens, it is worth thinking about optimisation. That is why we offer solutions based on artificial intelligence that can enhance existing systems. We will help make logistics more efficient through better data management. If you want to find out how artificial intelligence can help your business, feel free to contact us.