AI in logistics and supply chain management is on the rise. According to PwC’s Global Artificial Intelligence Study, almost one-third of companies (29%) surveyed already use AI to streamline their supply chains. The report predicted a 26% boost in GDP for local economies from AI by the year 2030. What are the most promising applications of AI in supply chain management? Let’s take a look.
Artificial intelligence has been proving that it can revolutionalize the logistics industry. The field of artificial intelligence includes a variety of technologies that aim to improve productivity, accuracy, and precision in logistics and supply chains. These technologies can be implemented in any phase of the supply chain process, starting with warehousing and inventory management through delivery.
Many businesses use AI tools to help their logistics and supply chains run more smoothly. Here are some examples:
1. Supply chain optimization:
Supply chains are the backbone of any company. It’s how raw materials are sourced and moved into production, how those products are sold, and how profits flow back into the business.
AI can save time by analyzing shipping data and building delivery routes and schedules models. AI-based tools can even predict when something will go wrong.
For example, if a shipment gets delayed due to weather or traffic conditions – and conservative management.
2. Warehouse management:
Traditional warehouse management systems cannot keep up with the changes in the market and consumers’ demands. They also lack a global perspective, leading to losses for large companies. However, with an AI system, managers have access to accurate data and know what products are selling. It helps them focus on items that will sell better.
One can use AI to automate warehouse management processes. It includes picking products from warehouse shelves, performing quality assurance checks, and sorting products for shipment based on customer orders.
Warehouse operators increasingly use AI to optimize their workforce, with automatic real-time alerts generated when additional labor is required. It means that warehouses operate smoothly even as they scale up or down to match demand changes.
AI can also be tasked with scheduling trucks for delivery. It uses traffic data, weather information, and a business’s historical sales data to create optimized delivery routes for drivers.
Order picking and packing. Many companies are using robot workers in their warehouses. These robots are connected via an AI system that gives one central command center complete visibility over the entire operation.The integrated system responds to changes in demand or other factors quickly and effectively.
AI systems optimize routes and get more out of the existing warehouse space. They do so by calculating the best way to move products around a warehouse. These systems can incorporate weather predictions into courses so that shipments go where they’re needed when they’re needed. It can help reduce waste and increase profits.
4. Logistics planning:
AI can optimize freight schedules for multiple hubs for shipping at once. It allows businesses to save money by not overloading one single corner with unnecessary product shipments at one time.
Inventory optimization on the warehouse floor. Warehouse managers can use AI to optimize inventory. For example, computer vision can be used to identify which products need reordering. As a result, the stock is usually more accurate and less expensive to maintain because there’s no need for manual stock-taking.
AI can identify the most efficient distribution strategy for a product or service by considering factors such as location, time, and optimal transportation methods.
5. Global trade platform management.
Trade platforms such as Alibaba use machine learning, deep learning, and other AI algorithms to manage their worldwide shipping and delivery network. It maximizes efficiency at every step of the process from end-to-end shipment tracking through customs.
Amazon has built its own logistics network, which uses autonomous robots to carry packages between fulfillment centers. These robots travel on custom-built sidewalks at speeds up to 10 mph, which may not sound incredibly fast but still makes them faster than an average pedestrian.
Supply chain management is a crucial function of any business entity. With the increasing demand for products, it has become imperative for businesses to ensure that they keep up with the market demands. They need to keep track of the delivered products and make sure they provide them on time.
Using AI-based systems, businesses can easily track their products and make decisions related to them more effectively. With Idea Usher, you can develop bespoke AI solutions for your supply management and logistics needs and enhance your business.