Reliant Logistics Institute


Artificial Intelligence in Logistics Industry


There are many reasons to say that this is the best time for the logistics industry to embrace Artificial Intelligence. This technology has never been so accessible and affordable. This has already started showing its presence in almost all the activities of the consumer, the enterprise and industrial sectors . In logistics, the network-based nature of the industry provides a natural framework for put into practice and scaling AI, amplifying the human components of highly organized global supply chains. Furthermore, companies deciding not to adopt AI face the risk of getting outdated in the long term, as competitors seize and effectively use AI in their business today.AI is stretching beyond consumer reach and into customer-focused commercial ventures. As such, once the value of AI is proven in the commercial context it will arrive in the industrial setting. The specific time of these transitions are quite impossible to predict, but the fact that AI is now deeply embedded in consumer markets and is experiencing explosive growth in commercial areas,is the proof that the use of AI in industrial sectors such as logistics is quickly approaching. The Logistics companies are in a position to get benefited by applying AI in almost all aspects of the supply chain.The high volume of data is the most underutilized in the industry that supply chains generate on a daily basis. This data is both structured and unstructured, and AI will enable logistics companies to make better use of it. In addition, many logistics companies around the world have started accepting the digital transformation, transitioning away from legacy enterprise resource planning systems to advanced analytics, increased automation, and hardware and software robotics, and mobile computing, the next obvious step in the increasingly digital supply chain is to apply AI. Further, logistics companies depend on networks – both physical and increasingly digital – which must function harmoniously amid high volumes, low margins, lean asset allocation, and time-sensitive deadlines. AI provides the logistics companies the ability to optimize network orchestration to degrees of efficiency that cannot be achieved with human thinking alone. The Artificial intelligence can thus help the logistics industry to redefine today’s behaviors and practices, taking operations from reactive to proactive, planning from forecast to prediction, processes from manual to autonomous, and services from standardized to personalize .Logistics service providers often rely on vast numbers of third parties including common carriers, subcontracted staff, charter airlines, and other third-party vendors to operate core functions of their business. This leads to an increase in the burden on logistics accounting teams to process millions of invoices annually from thousands of vendors, partners, or providers. Here, AI technologies like natural language processing can extract critical information such as billing amounts, account information, dates, addresses, and parties involved from the sea of unstructured invoice forms received by the company .Global logistics and supply chain operators typically manage large fleets of vehicles and networks of facilities worldwide.Thus using AI can significantly advance the performance of logistics operations. For air freight, on-time and in-full shipment is critical as it represents only 1% of global trade in terms of tonnage but 35% in terms of value.35 Most air freight lanes and networks are planned using historical data and expertise from professionals with decades of industry experience


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