AI, the logistics sector’s ally in the face of globalization requirements

If in one sector Artificial Intelligence has had a definite impact, it is the logistics sector.
In fact, according to a MarketsandMarkets report, the AI market in transportation is expected to reach $10.3 billion by 2025, with a compound annual growth rate of 42% during the period from 2020 to 2025.
These figures can be explained by the fact that this tool has become essential for companies to improve productivity and anticipate the market.
In this way, processes can be adapted and customer service and scalability of companies can be improved.

AI applications in logistics

The use of AI in logistics is enabling companies in the sector to strengthen their entire infrastructure in general, improving production processes and the management of warehouses and transport fleets.

Prediction and anticipation

If we combine the vast amount of data that can be collected through the internet and online shopping with the great machine learning capabilities of AI, the result is that we can predict how, when and what products consumers will want to buy.
This knowledge of demand allows companies to fulfill orders before their competition.
This will result in greater efficiency and a big boost to customer loyalty.
In the logistics sector, the ability to predict demand enables companies to effectively control their entire inventory, bringing it into line with reality and boosting automation.

Automation

AI can be used to automate warehouses.
We are talking about one of the main elements that make up the so-called Industry 4.0, with which the placement of goods and resources is efficiently managed.
In this way, it is not necessary to assign workers to this monotonous and repetitive task and these personnel can dedicate themselves to tasks of greater value to the organization.
But automation does not only cover warehouses; AI also enables advanced transportation management.
Thus, e-commerce companies and their value chain can work with large volumes of data, analyze it in real time and choose the best routes to move goods at any given moment.
These planned delivery routes are already achieving a reduction of more than 30% in travel distance and 10% in the use of vehicles.
In addition, with this technology we can control and visualize in detail all the trips made by the goods and thus improve the time of the carriers.
All this translates into a reduction in the risk of errors, a lower cost of transport prices, since we use the fastest routes that generate the least expense, and a reduction in CO2 emissions, since we can also use the most sustainable routes that require less fuel.

Intelligent Chatbots

Chatbots have made it possible to generate a personalized experience for customers, facilitating online shopping and even assistance in physical stores.
They can learn languages and linguistic variations on their own, as well as generate knowledge through interactions, enabling much smoother conversations.
In fact, according to a study by Juniper Research, a bot can save up to four minutes per interaction.
A clear example of the usefulness of these chatbots is IBM Wastson’s EVA, which was implemented by Ripley.
In just 4 weeks, this cognitive computing software was able to absorb the knowledge of the entire store and generate more than 53,000 interactions with real users.

How AI will impact logistics

In the coming years, the impact of AI on logistics will be increasing, especially in three areas:

• Significant increase in warehouse productivity.
  Especially those dedicated to online retail.
• Full automation.
  In the not too distant future, warehouses will be fully automated and will have more and more integral components linked to short- and medium-term forecasts.
• Highly skilled professionals.
  Supervisors and warehouse workers must be communicated and linked to technology to be able to respond quickly and effectively to changes or disruptions.

In short, AI is a key factor in increasing the competitiveness of logistics and transportation. All the advances linked to this technology have been favored by various factors such as increased competition in the market, which has forced logistics companies to invest in innovation. On the other hand, AI-based information exchanges enhance collaboration between companies and the emergence of new working relationships and greater business opportunities. But all this would not be possible without proper training of workers[:].