The introduction of modern and new technologies has positively impacted the transportation and logistics industry. In the past, when all the logistics were managed manually without any digital solution, there were significant challenges which the customer & transporters had to face, for instance, storage & inventory, transportation details, delivery timelines, etc. However, with the implementation of Artificial Intelligence (AI) and machine learning (ML), we are now able to address such important questions that previously presented a logistical challenge.
The CEO of Jaipur-based digital logistics service provider-Axestrack, Jagmeet Singh says “ AI and Machine Learning are defining digitalization in the modern industrial environment. When it comes to logistics and supply chain management, the potential of these technologies is tremendous. Starting from implementing intelligent tracking with high accuracy and repaired distance, to making predictions based on analysis of big data, the AI/ML influence is becoming a reality.”
With the help of new-age technology, we can make sure that all the concerned parties in the supply chain management cycle have a clear and precise view, which helps them to run smooth and efficient operations throughout.
Positive Impact of Artificial Intelligence and Machine Learning in Logistics and Supply Chain Management
Technology has greatly enhanced the transportation and logistics industry in India. Some of the benefits of how new-age technology has impacted the logistics are as below:
- Improved Fuel Economy- The real-time tracking helps us to understand and optimize the route map for any given vehicle, which in turn helps to save fuel and time. AI helps in logistics route optimization and you can also monitor harsh braking and analyze the data to minimize unnecessary fuel consumption. We are able to manage and control the fuel economy to a certain limit and can reduce the overhead cost.
- Predictive Analysis- Computers using artificial intelligence can gather and analyze information to make informed decisions. It will allow companies to be more proactive as AI will also help you to determine when a vehicle might need preventative maintenance. You can make longer-term and strategic choices to meet customer needs and expectations.
- Strategic optimization- Adapting AI and machine learning will help you to analyze enormous volumes of data for strategic optimization. With the help of sophisticated tools, you can analyze a wide range of constraints and optimize them. The technology plays a significant role in reducing the operational costs and implementing strategies beneficial for your logistics business.
- Cost & Efficiency Optimization- With the help of exhaustive data analytics, we can discern how to run a smoother operation which is achieved by better fleet planning & management. With the use of AI and machine learning, we can identify various key players, such as dealers, suppliers, refueling stations, maintenance workshops, customer hubs, etc.
We can create a geofence for each of those. Further, analyzing the stoppage, loading/unloading pattern, and time spent at each location/geo-fence. This will help us in better planning of delivery timeliness and route optimization. All of this in turn helps with cost reduction, expense management and leads to effective fleet management in terms of cost & efficiency.
Machine learning can enhance features like automatic order dispatch, plan
routes for drivers, etc which will help to attain a profitable business
outcome for logistics providers and customers. Adopting new technologies
can enhance customer experience by building a strong relationship with
customers. The Logistics sector should have a customer assistance
department that can identify and solve the problems of customers.
There is no doubt in saying that the face of logistics and supply chain management have been hugely impacted by new-age technologies such as AI and machine learning. By using modern technology, you can easily control your daily operations and track your goods accurately.
One of the topics of discussion here has been the element of safety. There have been concerns with night-time driving and theft of the vehicles. By analyzing the data pattern, we get to understand the frequency of night time trips so that we can assist our drivers on route. We can consider that new-age technology plays a pivotal role to improve the safety measures in the logistics sector and make it a more seamless process.