How is artificial intelligence used in logistics?

20/04/2023

 

Nowadays, it is simply impossible not to use the abilities of artificial intelligence in business. Firstly, it is convenient. Secondly, AI greatly saves the time that company employees spend on performing certain tasks. And thirdly, AI is a tool that helps business. Especially one that is related to sales and delivery.

How is AI used to predict the demand for goods?

Usually, when launching a product into production or when starting sales of new products, companies turn to the help of marketing specialists. But some people use Artificial Intelligence for the same tasks.

After all, the demand for goods and services depends on the region, seasonality, prices, population and many other factors. AI can collect all the data on request and give an answer: will there be demand for a particular product in a given region at a given time or not?

As an example, we can cite grocery store chains in Russia. Companies quickly realized that with the help of AI, they could process large amounts of information quickly and efficiently. So they loaded into the system all the receipts of buyers by region, and began to deliver goods to stores depending on demand. Naturally, this helped to get additional profit and reduce the amount of delay.

After all, many products have a short shelf life, and if they are in less demand at a particular outlet, then you can order them in smaller quantities. The benefit is on the face.

How is AI used to deliver goods?

The demand, for example, has been sorted out. What's next? That's right – delivery! After all, the company's products are usually stored in warehouses. And a large percentage of deliveries from warehouses to retail outlets are carried out by motor transport.

And the main thing here is that the goods arrive on time from point A to point B. The timing depends not only on the professionalism of drivers and freight forwarders, but also on situations on the roads. Agree, it is unpleasant when the delivery is delayed due to banal traffic jams. But even here, AI comes to the aid of logistics. Thanks to technology, the system of smart roads is developing.

It turns out that experts calculate the congestion of routes, regulate speed limits and the actions of traffic lights. Such a system is used all over the world, including in Russia.

As an example, it is worth mentioning an automated traffic management system in large cities of Russia. It is used in Moscow, St. Petersburg, Yekaterinburg, Volgograd and other cities. And it really helps the logistics sector. It becomes easier to calculate the delivery time, and cars with cargo arrive on time in most cases.

How is AI used to build routes?

Let's say we have calculated the demand for goods, found out the time that will have to be spent on cargo delivery. But how to lay the shortest and most convenient route?

Considering that Russia is really huge, and there are dozens or even hundreds of ways to deliver cargo from one point to another. You can also choose the types of transport. But do not be afraid. AI helps in this, too.

It is possible to calculate the costs of cargo transportation and build the shortest route thanks to the development of Artificial Intelligence.

With the help of this tool, giant companies calculate optimal routes by one or another type of transport, predict weather conditions and fuel costs. As a rule, they choose one main option for delivery and one alternative.

Thus, logistics giants deliver goods in the shortest possible time and with optimal fuel and other costs.

How is AI used in warehouses?

Let's imagine that we have a huge company working in the field of sales. Let's say a marketplace. Goods from all suppliers have arrived at the warehouse, now you need to sort them and send them to customers. It does not matter who it is: individuals or legal entities.

This is a very routine job that requires care and speed from employees. After all, the sooner the customer receives the goods in the best possible way, the better the feedback from our company will be.

How to organize the work so that the whole mechanism works like a clock? The answer is simple: with the help of robots. They work much faster, don't get distracted, and make almost no mistakes.

Yes, of course, the costs of purchasing and organizing the process will be high at first. But as the practice of the Chinese giant company calls, this cost quickly pays off.

Yes, it's about Alibaba.They have the largest robotic warehouse in the world. With the help of automated mechanisms, the company collects and packages the goods of customers. Now 70% of all work in the warehouse is done by robots.

How does AI help customers?

You probably notice how quickly your applications are processed on the same marketplaces. Again, all thanks to AI.

Smart systems themselves track the quantity of goods in warehouses, your purchase request is also generated automatically. And considering all of the above, this has the best effect on the delivery time of your goods.

Again, if you suddenly decide for some reason to return the goods, the request for a refund will be quickly received by the store manager or the management of the marketplace, you will be able to issue a refund as soon as possible and get your money back to the card or wallet of the marketplace.

Conclusion

AI helps to make complex logistics processes easier. And the introduction of technology has a positive impact both on the business related to transportation and sales, and on customers who make orders.

Considering how technology is developing in general, in the near future deliveries will become even easier, faster and more convenient. By the way, you should not worry about the fact that due to the introduction of AI, people working in the field of logistics will lose their jobs.

Most likely, they will simply adapt and undergo retraining to control the same robots, for example. After all, the speed of delivery, the quality of packaging and the construction of the route already depend on the interaction of robots and people. And it is the right interaction between people and AI that is the key to success in logistics–related business!