During the past few decades, Artificial Intelligence (AI) has come out of those leading technology workrooms and has reached to a common individual’s approach who unknowingly uses it on a daily basis. Apart from charging several apps and other electronic devices, AI stands on contributing to all areas of the market, in particular, supply chain and logistics business.


Indeed, many of the big and small logistics organizations are already taking advantage of adding AI to their business. AI is now playing a major role in transforming the market of logistics.  This technology is radically evolving the flow of movement of shipment across the globe, from a traditional perspective to autonomous transport and network.


Supply movements and networks are one of the major sections where companies are leading great income from investments in AI.  As there is a huge increase in the flow of data on a daily basis in the supply network, the necessity for more refined processing services is a must.

For that reason, many organizations are relying on AI-based mechanisms such as natural language technology, deep learning, and automatic learning. These mechanisms simplify the movement of a huge volume of data in a more proficient and simplified manner to deliver an advanced analysis, initiate an action based on the outcome of the analysis, delivering the required functionality and implementing many other complex scenarios.


As per the latest survey of Forbes, AI is decreasing uncertain machinery halt time by 15 to 30%, enhancing the production turnout by 20%, lowering the maintenance amount 30% and up to 35% rise in quality of delivery.

McKinsey predicts in 2019, AI has the capacity to generate $1.4T to $2.6T of worth in marketing and sales for a business at a global platform, and $1.2T to $2 in logistics and supply chain network.

Organizations like Couriero are already driving the supply chain services by providing multiple courier service providers at a single platform. One can schedule pick-up and select from multiple services for sending their small to large scale parcel.


A constant rise inflow of huge data is not the only reason for the introduction of AI in the supply chain. Some other components which are carrying the cause of the AI trend consist of processing power and speed of computers, smart algorithms to get complex information which was impossible with a human approach, and introduction to Big data.

All these elements are leading AI to grow as a most feasible technology in various sectors but to know exactly how AI is transforming the logistics industry, here are the top five ways:


  1. AI leads to advancement in managing warehouse, better customer service and reduction of cost.

AI can provide more and more relevant intelligence that offers the information in regards to reducing cost, managing warehouse, and fast customer service.

warehouse 5 ways ai will transform logistics industry

The introduction of machine learning and other AI techniques leads to in-depth knowledge into a broad range of activities in supply chain networks such as inventory management to optimize space utilization and quick inflow outflow, syncing all levels of logistics network and transport management.


AI modifies the partnership between the logistic operator and its clients by customizing it. For example, many delivery companies have already introduced a voice-controlled feature to their monitoring packages service, which helps in getting transport-related details using AI-based devices.

The customer can raise their basic queries to the automated AI-based device to know the live updates of their parcel and other small doubts. This can save your customer executive utilization hence saving money and time.


  1. AI offers extensive expertise in improving supply chain network performance.


AI can help in providing an in-depth understanding of your supply chain network, which can be used to find new factors influencing the performance hence increasing the productivity.

AI comes with the impactful abilities of three advanced techniques – controlled learning, unattended learning, and backup learning – to recognize vital components and features affecting the operations of the supply chain.

network performance 5 ways ai will transform logistics industry

As an example, administered learning can help in detecting any frauds and provides pre disclosed forecasts and predictions, unattended learning can monitor background flow without any human intervention whereas backup learning can assist in taking real-time decisions by providing precise knowledge.


  1. AI can function a huge volume of data, thus increasing the efficiency and market demand.


For any logistics or supply chain manager, one of the biggest challenges is to manage accuracy due to increasing user demand as it requires analysis of the huge volume of inflow that can cause uncertainty and delay.

Before AI, traditional techniques failed to deliver value to users because they didn’t take into consideration many contributing reasons such as user attributes for the requirement perspective.


With the help of AI, monitoring and evaluation of the features at various levels can help in improving the accuracy rate of future demand predictions. AI offers a never-ending cycle of predictions, altering managing the probability based on real-time facts like outflow, demand, sale, and climate.

Keeping a check at all these factors could easily help in optimizing inventory shape management with features like automatic sorting, detailed monitoring of inflow, self-management and independent vehicles and tools. Big organizations like Amazon have already adapted to highly automated and advanced distribution WorkCentre.


  1. AI can enhance the selection of supplier, leading to rise in the utility of supply relationship management

An expert logistics understands the role of risks related to the supplier. A small mistake by a supplier can put at stake the brand name of any company.relationship management 5 ways ai will transform logistics industry

AI can study supplier based information to examine their performance such as on-time delivery checks, evaluation of the quality of supplied products, feedback assessments, audits, and credit ratings. these data can be used for future based decisions regarding that specific supplier helping a business to pick better supplier based choices to strengthen their customer service.


  1. AI optimizes production management and manufacturing setups

Previously when techniques like machine learning were not introduced, businesses didn’t have refined equipment to boost production planning and manufacturing setups precisions. AI facilitates them to consider various limitations and balance those especially for made to order based purchasers.

With the help of AI, companies can also minimize the supply chain waiting time by analyzing and forecasting the demand for busy parts and amending the flow ensuring the smooth movement of production.

Author Bio: 

Suraj Pandey 

Chief Technical Officer at Courier

I’m a doyen of governing the digital content to assemble good relationships for enterprises or individuals. I’m specialized in digital marketing, cloud computing, web designing and offer other valuable IT services for organizations, eventually enhancing their shape by delivering the stupendous solutions to their business problems.

Leave a Reply

Your email address will not be published. Required fields are marked *