AI in Logistics: Benefits and Use cases
Perhaps a few decades ago, the idea of artificial intelligence in the field of logistics could not be imagined, however, today we can appreciate its real possibilities and perspective.
What does AI offer and where is it used effectively? In today's world, where e-commerce plays an important role in the business industry, we want a supply chain where the product finds the fastest route to us. And AI can appear everywhere, from efficiently run warehouses to precisely planned delivery routes.
Most warehousing operations face the following challenges:
- Inefficiency: Mechanical, static route planning cannot respond to real-time congestion or weather changes, leading to longer transit times and higher fuel costs.
- Time-consuming processes: Warehouses waste about 3,000 hours a year due to outdated and manual processes.
Logistics with AI:
The introduction of artificial intelligence has significantly changed the logistics landscape. 38% of existing companies use AI to reduce operational costs by up to 50%.
- One of them is the well-known Amazon, the global e-commerce leader. AI algorithms enhance demand forecasting and inventory management. In its automated warehouses, around 200,000 robots pick, assemble and sort items, increasing efficiency and reducing errors.
- Shipping company FedEx is using AI to automate and improve package sorting in its warehouses. Robots with artificial intelligence can sort up to 1,200 parcels per hour, which significantly reduces time. In addition, FedEx uses AI to identify potential delivery delays due to weather delays or traffic congestion, improving the overall customer experience.
To summarise, AI has greatly improved efficiency, and experts predict that by 2035, AI will increase logistics productivity by more than 40%.
- AI can reduce warehouse operating costs by 50% and increase safety by 90%.
- AI uses predictive analytics to better handle potential disruptions.
- AI optimises delivery routes, saving time and fuel.
- Simplify the automation of routine document processing
Source: Eliftech, AI in Logistics: How Does It Truly Transform The Field?
