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How Are Automation and AI Renovating Logistics Industry?

By Logistics Tech Outlook | Wednesday, December 18, 2019

The implementation of AI and automation within the industry can have a considerable effect on reducing costs. Also, fewer errors from human decision-making can further cut down the expenses.                         

FREMONT, CA: In today’s digital world, where more companies rely on e-commerce to reach a larger international audience, the logistic industry is not left far behind. Conversely, with logistical requirements becoming more complex in tandem with an increasing amount of data, the business is also facing more challenges than ever before.

The logistics business relies on a multitude of processes to facilitate the proper distribution of materials, services, and products from businesses to customers or from businesses to other businesses. Accordingly, with the rapid developments and increasing need for logistical services, the field is looking toward a future of digitally-optimized processes.

Below is how Artificial Intelligence (AI) and automation are transforming the logistics industry and contributing to its improvement.

• Improved Data Management and Customer Service

Customer service in the logistics industry is an essential part of the success of a logistics provider. With the growing number of e-commerce businesses, consumers rely on online orders more than ever. However, due to a host of errors and negative experiences with the logistics providers, they tend to trust online shopping less. One of the main advantages of the implementation of AI in the logistics industry is the opportunity to offer better customer services. If one has ever ordered something online in the past, they will probably know how difficult it was to get in touch with the provider and get data on the order.

Long-gone are the days when suppliers were relying on a tremendous amount of paperwork that was leading to errors and bad customer service. Today, all logistics companies have cloud databases, which allow them to access customer and order information within seconds. Businesses can now manage daily activities comprising availability, transportation, costs, real-time monitoring of flow and resources, staffing, and supplier more competently to ensure faultless processes and the paramount customer service.

• Enhanced Work Safety For Employees

Work safety is vital for any business, no matter its size or industry. The logistics industry comes with its security hazards, which might put the employees in danger. From doing monotonous and recurring tasks to lifting heavy objects or supervising dangerous materials, the wellbeing of the workers can be affected.

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Nevertheless, the implementation of AI and automation can have a significant impact on enhancing work safety in the industry. AI can reduce the risk of injury at the operational level in the supply chain warehouse by taking awake workers from dangerous work procedures. For instance, a packaging and palletizing robot can purge the risk of injury in the industrial palletizing tasks like the loading or unloading of items like heavy boxes.

Moreover, industrial robots can take care of recurring tasks that save the time of human employees and protects them from the strain caused by repetition. Besides, it enables them to focus more on high-value tasks that can play a huge part in enhancing the potency and performance of the entire business.

• Cost Reduction

The implementation of AI and automation within the industry can have a considerable effect on reducing costs. Also, fewer errors from human decision-making can further cut down the expenses. For instance, envisage a large shipment containing hundreds of orders arriving at the wrong address or getting lost. Such a situation will entail a massive amount of expenses to locate the purchase, change its direction, and make things right. However, with AI, the issue can be eliminated as it allows better data management leading to improved precision of all the processes—companies will face fewer errors that can cost them money. Besides, the need for human workers also decreases with the approach. Firms can complete all their business processes with fewer employees that result in a smaller number of paychecks to pay for at the end of the month.

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