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How AI changes the Logistic Industry

As time progresses and mankind relies more and more on technology, Artificial Intelligence (AI) has given nearly every industry a way to be more efficient in their methodology, thereby reducing waste and increasing potential output. Logistics is a major industry which benefitted greatly once AI made it’s way to the scene.

Before we delve deep into the numerous advantages of using Artificial Intelligence in the world of digital marketing, we must first ask what exactly is AI? Artificial Intelligence is the process of allowing machines to learn from experience, to adjusts its system accordingly, and perform human-like tasks. It’s like giving a machine a brainand telling it to perform a certain task. The machine will use it’s knowledge, reasoning, and problem solving ability which it has learned to complete the task at hand.



In any given industry there are hundreds if not thousands of variables to take into account while planning for the future, and while humans have successfully managed to expand industries by themselves, AI helps makes planning easier by accounting for current and future clients, supply and demand constraints, industry needs and more. If used properly, AI can reduce wastefulness and unnecessary expenditure.


Route and Freight Optimization

AI helps companies to optimise their shipping routes to ensure efficiency. This also saves moneyand fuel, making this technology eco-friendly. UPS, a postage service in the United States, saved considerable manhours when they started using routes with fewer left turns as that took moretime and driver experience to navigate successfully. Furthermore, AI isn’t only helpful on a commercial level, it also helps apps like Google Maps and Apple Maps recommend optimised routes based on traveller needs. For example, when travelling through London’s public transport system, these apps may recommend routes that are either the fastest, the cheapest, or involving the least transport changes. All thanks to AI.


Demand Prediction

In today’s high-speed deliveryworld, demand prediction is more important than ever. Demand prediction is the field in predictive analytics which focuses on using historical data and trends to predict what demand will be in the future. This is because it takes time to ship products from manufacturer to the customer’s door and predicting the customer’s needs before even the customer knows them leads to faster deliveries, therefore leading to high satisfaction and possible repeated business. Amazon often uses AI to predict potential demand in certain areas and ships goods to the nearest warehouses.


Automated Vehicles

AI is being implemented by several car manufacturers such as Tesla and Rolls Royce into their vehicles in order to create fully automated vehicles which wouldn’t require any human intervention at all. These AI study current human traffic conditions, possible traffic scenarios and calculate movements and turns accordingly. As of right now, governments around the world still want a human driver in the seat in case the AI fails, but many vehicle manufacturers aim to completely automate vehicles forcommercial uses such as taxis and delivery trucks to minimize labour costs.

AI is playing a massive role in the logistics industry as it improves efficiency and thereby reduce costs and wastage. Companies using AI have a better chance of succeeding in the future astheir planning is more accurate and their demand prediction leads to better consumer service. Others who aren’t using it to their advantage may fall behind the curve.

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