Automation and AI are revolutionizing the logistics industry


In today’s digital world, when more and more companies rely on e-commerce to reach a larger international audience, the logistic industry is now more important than ever for the business landscape. However, with the world’s logistical requirements becoming more complex and the rising amount of data, the logistics industry is also facing more challenges than ever before.

The logistics industry relies on a multitude of processes in order to facilitate the proper distribution of materials, products, and services from businesses to customers or from businesses to other businesses. Thus, with the rapid advancements of our world and the increasing need for logistical services, the industry is looking towards a future of digitally-optimized processes. Here’s how the AI and automation are revolutionizing the logistics industry and contribute to the improvement of it:

Better data management and customer service

Customers service in the logistics industry is a vital part of the success of a logistics provider. With the rising number of e-commerce businesses, consumers rely on online orders more than ever. However, due to a multitude of errors and negative experiences with the logistics providers, they tend to trust online shopping less and less. One of the main benefits of the implementation of AI in the logistics industry is the opportunity to provide better customer services. If you have ever ordered something online in the past, you probably know how difficult was to get in touch with the logistics provider and get information about your order.

However, long are the days when the logistics providers were relying on a huge amount of paperwork which was leading to errors and poor customer service. Nowadays, all logistics companies have cloud databases which allow them to access customer and order data within seconds.  Logistics companies can now manage daily activities including availability, costs, real-time monitoring of flow and resources, transportation, staffing, and supplier more efficiently to ensure flawless processes and the best customer service.

Improved work safety for employees

Work safety is paramount for any business no matter its size or industry. Ensuring a healthy and safe work environment for the employees is vital in avoiding paying injuries compensation, getting a bad reputation. Moreover, apart from the legal and moral obligation of any employer to provide their employees with a safe workspace, there is also a multitude of benefits including increased productivity, improved employee satisfaction and loyalty, and increased efficiency.

The logistics industry comes with its safety hazards that may put the employees of logistics providers in danger. From doing monotonous and repetitive tasks to lifting heavy objects or managing dangerous materials, the health and wellbeing of the workers from the logistics industry can be affected.

However, the implementation of AI and automation can have a significant impact on improving work safety in the logistics industry. AI and automation can reduce the risk of injury at the operational level in supply chain warehouse by removing workers from dangerous work procedures. For example, a packaging and palletizing robot can eliminate the risk of injury in the industrial palletizing tasks such as the loading or unloading of items like heavy boxes.

Moreover, industrial robots can take care of repetitive tasks which saves the time of human employees and saves them from the strain caused by repetition. Also, it allows them to focus more on high-value tasks which can play a huge role in improving the productivity and efficiency of the entire business.

Improved precision and efficiency

Another important benefit of the implementation of AI and automation in the logistics industry is the fact that it can play a huge role in enhancing precision and effectiveness in supply chain processing.

With the help of artificial intelligence, the logistics companies can easily manage all the supply chain processes more efficiently through anticipatory logistics system. The main expectation of the customers of the logistics companies is to have their orders delivered as fast as possible. As a result, the anticipatory logistics system is used by companies to determine whether there is an increase or a decrease in the demand from their customers and adjust their production volume accordingly to the trend.

Artificial intelligence implemented in the logistics companies can lead to an improved process of managing and analyzing huge amounts of data. Spreadsheets and other outdated systems are no longer an efficient method to manage data. Thus, artificial intelligence emerged when information and data started to reach unimaginable amounts in the logistics industry. Logistics companies generate and have to manage huge volumes of data every day. This used to be a real challenge for human employees to process and analyze before the implementation of AI and automation.

Real-time tracking systems, anticipatory logistics systems, and the possibility to manage large amounts of data within seconds result in faster deliveries, fewer human errors, fewer orders lost or mistakenly delivered, and, obviously, improved customer satisfaction.  

Cost reduction

The implementation of AI and automation within the logistics industry can have a huge impact on reducing costs. Fewer errors from human decision-making can lead to the reduction of the costs for logistics companies. Imagine a large shipment containing hundreds of orders getting lost or arriving at the wrong address. Such a situation will involve a huge amount of costs to locate the shipment, change its route, and make things right. However, thanks to AI which allows better data management which leads to improved precision of all the processes, logistics companies will face fewer errors that could cost them money. Also, thanks to the automation of processes, the need for human workers decreases. Companies can complete all their business processes with fewer employees which results in fewer paychecks to pay for at the end of the month.

The implementation of artificial intelligence and automation within the logistics companies can raise their productivity margins to a whole new level. The logistics industry has started to embrace technological advancements in order to improve supply chains processing, customer satisfaction, and create a safer and healthier work environment for the workers.

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