Artificial intelligence is hitting new adoption levels each year, with industries like supply chain management and logistics taking center stage in the AI race. As per Infoholic Research, the AI in the logistics and supply chain market is predicted to grow at a CAGR of 42.9% over 2017-2023 to reach USD 6.5 billion by 2023.
The process complexity and amounts of data generated by the industry call for a higher and tighter structure and transparency through digitalization. Operational challenges aside, people want their stuff right now – be it a multinational corporation awaiting new equipment, or an Amazon customer expecting their gifts come holiday season. In today’s world, the speed of delivery matters more than ever. In addition to speed, customers demand deliveries and pick-ups at a specific time slot, adding a layer of complexity to route optimization. Then, there’s the question of pricing.
At the age of online price transparency, companies are expected to deliver a higher quality of service at lower costs, putting pressure on company margins and pushing them toward labor automation. There are just too many moving parts to this industry for it to persist without AI and the augmentation. With multiple players across different parts of the supply chain, regulators, a vast number of third parties including subcontractors, operators, airlines – this is literally too big to fail, but it’s certainly prone to economic stagnation and hard losses if the whole setup does not adapt to the modern age.
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AI to Predict the Demand and Improve Customer Experience. Artificial intelligence in the logistics sector has one quite obvious use case. This technology can assist in predicting demand. Of course, companies need to predict the approximate number of goods to speed up delivery.
According to logistics giant DHL, visual inspection powered by AI is identifying “damage, classifying the damage type, and determining the appropriate corrective action” faster than ever before.” A good example of this is from retail giant Amazon, who utilize computer vision systems which can help to unload a trailer ...