By the onset of 2020, B2C businesses and Supply Chain Management has seen a co-dependent leap in growth, largely owed to the Covid-19 pandemic. But the coronavirus just accelerated a slowly moving transformation of how business is done across state and national borders. Advancements in technology are happening every day. New fascinating marvels are being uncovered every now and again. While the world is waiting for these things to be available for daily use, the logistics and supply chain sector is already putting these advancements to good use.
Many technologies that are still developing are being employed in the SCM industry, like robotics, AI, drones, and cutting edge monitoring systems. Software and hardware are making the process of automation bliss, reducing human error, and increasing profits while simultaneously reducing the time it takes to fulfil tasks. The future is here, and it is right now. To get a sneak peek into how far we’ve come, we’ll look at how the logistics and supply chain industry has transformed using modern technologies.
AI and Machine Learning
We have been familiar with the concept of Artificial Intelligence for years now, thanks to dystopian sci-fi movies and novels. AI is presented as consciousness that is manufactured and not born. It is sentience that is digital and not organic. But in a realistic world, it is simply a computer program that learns how to make decisions over time, referencing data collected. That is what the term “Machine Learning” refers to. So using software intelligence, AI can conduct operations using a set of technologies to learn, interpret information, and make decisions at a human-like level.
Ways in Which AI is Transforming Logistics
1. Using Big Data Efficiently: Big data is the gigantic compilation of the little things and the big ones, all stored in your systems. Using AI, you can use this knowledge to tweak your operations according to what is required. This data gives you valuable insights to drive strategic decisions and using AI, you have the power of advanced predictive analysis and automation.
2. Robotics to Replace Labour: Human labour can be expensive, requires management, and has many human factors that one must take care of. Robots, however, don’t get sick, don’t have family problems, and don’t mess up orders because of basic human errors. Robots can identify, sort, manage and move shipments using AI and a set of other technologies. Installing a host of robotics in the warehouse is a wise investment for any company.
3. Self-Driving AI Cars: This is the next big development that will soon become normal. AI has proven its place as a self-driving automobile mechanism by outperforming humans. Digital intelligence has shown a better presence and receptivity towards traffic laws, road signs, and general road awareness. This will make transportation very easy and error-free.
Why should one Trust in AI?
To the uninitiated, the idea of relying on technology and machines this much might be either scary or expensive. But the manner in which things are going, soon every supply chain management element will have to employ AI practices to maintain competitive advantage. Let’s look at some more reasons why AI is going to be vital in the future.
Better Demand Prediction: Supply chains rely on balancing the input and output at various stages. The amount of raw material required must be predicted to make enough products that sell and have enough liquid inventory in the manufacturing stage. With an AI and machine learning powered system, you will have enhanced predictive analysis that can forecast just how much you need in supplies and how much product is required to satisfy a healthy demand. This will result in a lower inventory and an easily manageable warehouse.
Enhanced Customer Experience: No matter which business you are in, the customer will always remain the king. If you don’t find a way to delight your customers, you will lose their business to your rivals. With AI, it is easier to please customers with personalized product recommendations based on their purchase habits. You can also engage customers and stay in touch with them using automatically responding chatbots.
Effective Planning: Businesses can grow largely because they learn to manage and expand their resources well. For this, a lot of diligent planning is required. Effective planning is the only way to bring down costs and increase profits. Using AI, you can better understand scenarios and figures that must be tweaked for business growth. This planning also involves the management of resources in the most efficient way.
Route Optimization: Using AI, you can plan and alter routes in real-time. This real-time route optimization allows for shipments to be transported with more efficiency. These systems allow quick deliveries with a lesser requirement for human labour. AI makes freight management easier and expedites the delivery process.
Warehouse Automation: Using many check-in and check-out processes, AI has made it very efficient to collect and analyze data. AI helps in predicting product demand more efficiently than any human expert. Computer vision is something that comes in very handy in such use, where goods can automatically be identified and organized. In the future, this technology will be able to determine the quality of products without needing human intervention. AI can also connect multiple warehouses and decide which shipment should go from where.
Product Inspection: Again, using computer vision and a combination of sensors, it can be easily determined when products are damaged in real-time. This also aids future actions and decisions to avoid these mistakes from happening.
The world is being blessed with new ways in which technology makes life easier. The supply chain industry is one of the first few to adopt AI and modern technologies, and they do it well! If your company is looking for supply chain management solutions to reduce costs and increase profits, working with a 3PL such as ARK India is in your best interest. Our industry-standard practices and solutions have transformed business for our past clients. Get the same benefits today! Contact us at [email protected].