Use cases- How AI is transforming the Supply Chain Operations

The unprecedented volume of data and AI are the biggest use case to improve the operational efficiency in Logistics. The industry is dependent on many moving parts that can create operation jolt in the supply chain. However, the application of AI combined with big data; the complex traits of logistics can be transformed. When leveraging AI and machine learning, Logistics can improve the streamlining of factory functions or optimization of the routes. The level of transparency AI offers, it can enhance the efficiency grade for both logistics and supply chain.

As per a study, 98% of the logistics operations are interested to implement AI-based technology at their operations as they facilitate data-driven decision making, which is central to bringing about the operational success of the supply chain activities.

By leveraging AI, it enables logistics to improve some of the key operations and improve cost-savings. Let’s check the best use cases of AI for logistics operations.

Accelerated last-mile shipment

The last-mile delivery is a complex activity, costing logistics up to 28% of the total cost of the delivery. The most common challenge for this phenomenon is the unavailability of the customers, resulting in an item to remain undelivered. Additionally, the delivery person must take extra care to prevent any damage to the item. The last-mile delivery is quite exhaustive. However, using AI-based capability, logistics can use last-mile analytics enabling them to predict what is going to happen with the delivery from start to finish. Embedded with sensors and GPS, the delivery vehicle constantly streams data to the warehouse data system, and alerts them about the exact delivery time. This improves the process of delivery by alerting customers about its expected delivery time while helping the warehouse optimize the delivery strategies.

Improved delivery of perishable goods

It is a long-time problem for logistics to deliver perishable goods. Using AI and IoT, the delivery persons can get a better understanding of their products and ways to avoid loss due to perished items.

It is efficient for logistics that carry ice cream and desserts. Using temperature sensors inside the delivery vehicle, it is easier to monitor the state of the weather and direct the vehicle to another route if it senses damage to the product.

Enhanced Transparency

AI helps logistics decide the real-time and accurate delivery time of the product, thus preventing unnecessary expenses related to goods canceled.  This transparency also helps logistics make better decisions regarding how many shippers they actually need to ship products.

AI and big data are bringing new possibilities in the arena of logistics. Besides, the Internet of Things combined with AI can improve forward-thinking and help businesses reduce costs and improve customer experience, while increasing customer satisfaction. SynergyLabs is a renowned AI consultant to help you implement the next big AI project for your business.