Artificial intelligence (AI) will provide significant value for the logistics industry in 2019. With increasing computing power, maturing Big Data technologies, and advancements in algorithms for deep learning, the logistics industry is becoming AI-driven to improve efficiencies in the daily operations of physical and digital supply chains and to enhance decision-making throughout the shipment cycle.
Three ways shippers are starting to benefit from AI include:
- Data quality: Clean data is paramount as systems pull data from multiple sources and connect ecosystems for analysis. Using algorithms, AI can detect if data is accurate and complete and it can fill in data gaps
- Documentation: Similar to your bank scanning check deposits, AI can be applied to read shipping documents to take in document information for faster processing and validation of shipment information
- Predictions: Not only can AI present a more complete picture of your shipment information and physical location, it can analyze past trends and current data from Internet of Things (IoT) to make predictions of cargo departure, arrival, and transit times with greater accuracy to optimize shipment operations through loading, transshipment, and arrival ports
With the emergence of IoT and advanced algorithms, predicting cargo transportation milestones with high accuracy is achievable. AI applications that offer optimization and disruption handling for supply chain parties to take action sooner are rapidly evolving. Shippers and logistics service providers that are early adopters can leverage new insights to implement improvements in their supply chains immediately.