{"id":10015,"date":"2022-06-29T06:16:19","date_gmt":"2022-06-29T06:16:19","guid":{"rendered":"https:\/\/www.conurets.com\/?p=10015"},"modified":"2022-06-30T09:28:18","modified_gmt":"2022-06-30T09:28:18","slug":"how-ai-and-iot-can-help-logistics-and-supply-chain","status":"publish","type":"post","link":"https:\/\/www.conurets.com\/how-ai-and-iot-can-help-logistics-and-supply-chain\/","title":{"rendered":"How AI and IoT can help Logistics and Supply Chain"},"content":{"rendered":"
In the latest decade, the processes or even the whole supply chain and logistics industry have been revolutionized with the help of advanced technology. The driving force behind such innovations is Artificial Intelligence (AI), Machine Learning (ML), and the Internet of Things (IoT). Furthermore, algorithms gain more power with agile decision-making, for instance, predictive analysis and cloud computing.<\/p>\n
The data collected and analyzed by transportation and warehousing systems in supply chain and logistics can be used to balance the supply and demand curve and optimize the goods delivery. The fusion of AI and IoT in the supply chain enables the companies to make data-driven decisions, scale business strategies, enhance supply chain management productivity, optimize supply chain planning, and track the supply chain operations in real-time.<\/p>\n
The most recent research reveals that 36% of organizations all around the globe have successfully integrated AI and IoT in automating their supply chain and logistics processes. 53% of those companies experienced financial growth, and 61% of the companies reported a reduction in operational expenses.<\/p>\n
The growth and combined efforts of AI and IoT have significantly changed many supply chain and logistics sectors and have helped companies cater to new challenges. Here are a few capabilities of AI and IoT that you can evaluate to know how they fit into the company’s operations.<\/p>\n
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Managing customer relationships is challenging in the supply chain and logistics industry. However, with the help of technologies like AI and IoT, companies can integrate virtual assistants who may help the customers or the visitors to their desired products as per their searches. In the B2B marketplace, chatbots can be used for all kinds of transactions to manage buyers’ expectations and identify procurement requests. With such solutions, a business can ultimately eliminate the need for a customer service executive and reduce the consumer response time.<\/p>\n
For instance, with the help of the voice-based service, customers can get a real-time update about their order. In this way, customers will know about the delivery’s progress without interruption and might be aware of the possible delays beforehand. This significantly helps the supply chain and logistic companies build a viable customer relationship.<\/p>\n
The predictive analysis aspect of AI and data collection capabilities of IoT sensors can provide details regarding personnel availability, warehousing, fleet availability, and customer orders. In this way, supply chain managers and logistic companies can optimize and plan the routes accordingly while considering the delay factors such as climate conditions and traffic. By optimizing the routes as per the given data, companies can save nearly 10 million gallons of fuel annually. Additionally, AI can also analyze the data gathered from the sensors and provide useful insight regarding credit reports, delivery performance, audits, vehicle usage, and evaluations to make future decisions.<\/p>\n
AI and IoT hold the potential to completely revolutionize the inventory processes and warehousing operations, which can enhance the overall productivity of the company. The biggest technological trend in the supply chain and logistic companies nowadays is robotics. IoT and AI-enabled robots in the warehouse can easily move and locate the inventory in the warehouse, sort packages, and track items. This reduces the human effort and chances of error at work, increasing overall productivity as the AI guides the robotic actions. Additionally, AI can predict the number and type of items that will stay in the warehouse longer or which items will leave soon. Smart warehousing makes the work easier by reducing manual work.<\/p>\n
Many companies benefit from using AI and IoT in combination to improve the supply chain and logistics procedures. For instance, by checking the information regarding the traffic and weather conditions, managers can easily optimize routes for the fleets to ensure timely delivery. Also, managers can analyze the demand in certain areas and direct the fleet toward the locations where the demand for certain products is high, which can lead to significantly lower operational costs. The data collected from the IoT sensors in the supply chain can guide the managers about the demand forecast and the flow of products from one place to another. This helps the managers prepare themselves for an increase in demand beforehand to avoid risks of future losses.<\/p>\n
Driverless technology uses AI and IoT to provide a lot of obvious benefits. This technology is becoming increasingly popular these days. It is not limited to mainstream transportation but is also useful for managing the fleet operations in supply chain and logistic companies. Such vehicles can work around the clock and reduce human error to a greater extent.<\/p>\n