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February 17, 2021 | 13:02


AI technologies are used to simplify business operations, optimize work with the production lines and processes. Using image recognition functions and interactive interface, artificial intelligence helps to develop self-learning abilities in logistics. Many other examples demonstrate the benefits of using artificial intelligence and its ability to change the world of business fundamentally. Let’s talk about how logistics uses AI tools to help the industry move forward future improvements.

The AI concept: value and importance

Artificial Intelligence in Logistics

The term artificial intelligence is used to explain the ability of machines and programs to analyze the obtained information, to conclude it, and to make decisions based on them. A key characteristic of AI devices is the ability to learn, accumulate knowledge continually, and successfully apply them to the industry. The main thing for AI devices is to perform the actions performed by the human brain. The motivation for the development of AI technology to automate tasks that depend on many difficult to understand factors and require complex solutions. Make machines think and proceed with information like a human to automate monotonous tasks. 

Over time, a series of algorithms and software systems began to be assigned to AI, which can solve some problems the way people reflect on their solution. This is a complex of related technologies and processes developing efficiently and rapidly, for example:

  • Natural language text processing.
  • Machine learning.
  • Expert systems.
  • Virtual agents (chatbots and virtual assistants).
  • Recommendation systems.
  • Thus, the properties of AI are language comprehension, learning, and the ability to think and, importantly, act.

    In the case of logistics, artificial intelligence has additional features that are relevant to this area. Technologies can help the logistics companies improve interaction with the client through communication and even implement the ability to deliver goods before the customer orders them.

    Read also: Predictive analytics in supply chain execution

    The role of artificial intelligence in logistics

    the role of Artificial Intelligence in Logistics

    Many industries use AI capabilities in two directions: back office and front office. That is, the technology successfully optimizes the work both inside and outside the company. If we’re talking about the process inside the company – the back office, the task of AI in this direction is to unload employees, taking on all the routine and mechanical methods.

    Collecting financial information. It often happens that a logistics company conducts many financial transactions per day. This is a vast array of data from business accounts, transaction amounts, account data, expenses, and income, etc. Because of this, companies are forced to turn to third parties for help. AI technologies solve this problem by reducing the time and money needed to process such data. All information is presented in an interactive format, on dashboards, and help-desks online.

    Customs clearance. Anybody who is even a little familiar with logistics knows how sometimes customs clearance processes are tiresome and tedious. The usefulness of AI in this regard is that it helps to draw up the necessary documents and declarations. Besides, artificial intelligence will help determine the customs value of each product, verify the information, and declare goods in minutes. This cuts resources and costs hundreds of times.

    Processing customer information. This is a factor that is important in all areas, not only in logistics. AI helps to process and update all the information about each client, structure it, and select the best special offers.

    The impact of AI on the leading logistics processes

    The impact of AI on the leading logistics process

    The core influence of artificial intelligence also was noticed in the smart forecasting of the main logistics processes. This is about route planning, network management, customer interaction, etc. Many companies have already demonstrated the success of such innovations:

  • DHL released a program for forecasting air travel delays.
  • Deutsche Post developed and implemented the SmartTruck system, which develops the most optimal routes for speedy delivery.
  • S2PWeb developed the GedVerifier program for automatic analysis of key documents of logistics companies, reducing the processing time of materials by eight times.
  • The company HERE developed an application for predicting the most dangerous situations on the road.
  • Many companies noticed the benefits of AI in the expanded capabilities of this area, removing the burden from employees. So, in May 2018, DHL and IBM presented a joint report, “Artificial Intelligence in Logistics”. The report assesses the potential for using artificial intelligence in this area. It puts forward several ideas about transforming the industry, developing a new class of logistics assets, and operating systems with exceptional support.

    Today, the main AI tools are used in some different functionalities and tasks:

  • Order analysis in online stores to determine the most significant consumer demand and predict the future trade trends.
  • Integrated enterprise management information systems (ERP).
  • Warehouse Management Systems with Address Storage (WMS).
  • Control of automated technical means and industrial robots.
  • In software technology, “smart home”.
  • Transport management systems (TMS) to determine the most efficient transportation routes and analyze performance.
  • We can add a relatively new direction for the use of artificial intelligence in trading logistics: software for technical auto centers. It allows you to calculate maintenance periods in advance and minimize the risk of breakdowns.

    Developers are continually improving their algorithms at the same time as artificial intelligence solutions to automate manual work in logistics, decision making, and conduct the necessary operations. With the help of AI, you can control automatic stackers (AGV) or warehouse drones, analyze the situation and determine the minimum number of employees required for the full operation of the warehouse.

    When planning the operation of the auto enterprise, the weather algorithm and road conditions in real-time can be integrated into the software algorithm to optimize the calculation of the best transportation route continually.

    Challenges and disadvantages from artificial intelligence solutions

    challenges from using ai

    Briefly summarized, the main advantages from the use of artificial intelligence in logistics, according to IT market experts, are access to new levels of productivity, automation, efficiency, analysis, training, decision making, predictability, and learning ability. However, since this is a new trend, experts see even more difficulties than advantages:

  • The main one, perhaps, is the lack of sufficiently large data sets for training artificial intelligence.
  • Complete lack or insufficiency of data to build accurate models.
  • The need for restructuring the business process with the introduction of intelligent systems.
  • AI requires control by developers, whose cost of work, as a rule, is much higher.
  • Some companies are faced with another problem: a shortage of qualified personnel, and an insufficient level of competence. There are even cases where the introduction of AI complicates the conservatism of leaders. Moreover, not everyone understands the importance of implementing logistics and artificial intelligence, as well as the need to spend money on such decisions.

    And finally, the most interesting question: will artificial intelligence be higher than humans, and can it replace it? Luke Julia, Samsung Electronics’s Vice President of Innovation, believes AI-powered machines need to collect a lot of data to form any model. This technology is unable to think and show creativity, as a person does, but can only recognize.

    Despite a significant increase in the use of artificial intelligence technology in many areas, it should be noted that it is not safe and ideal technology and has its opponents. However, the fact that AI technologies will inevitably be introduced in the future is undeniable. It follows that AI technology is best suited for optimizing various kinds of mechanical activity, automating routine operations, and using it in hazardous industries.

    Thus, the competent use of robotics on conveyor lines allows you to switch to a non-stop mode of operation, optimizes the costs of the enterprise, improves the quality of products, but requires a severe and lengthy stage of commissioning.

    Nevertheless, not many companies can afford to invest heavily in such technologies, although this will make production cheaper at times. The situation with machine learning technologies is similar: for each project, analyze a large sample of data, moreover, according to individual algorithms, which requires time and resources. But after the introduction of automation, these operations will be faster and cheaper than a person can do.

    Read also: Intelligent Traffic Management Systems

    To summarize

    The impact of AI on the leading logistics process

    Artificial intelligence technology helps to make processes go faster and more efficiently. Companies spend less and earn more. Such systems can effectively replace a human expert in transportation, forecasting, trading on the exchange, consulting, drawing up documents, and talking about logistics.

    So, the main advantages of currently existing solutions are the ability to automate logistics processes while minimizing human efforts in this and expanding areas where it is possible to use software instead of human labor.

    Especially good at the moment, the AI copes with the analysis of large amounts of data, where a person would need too much time, and ordinary programs that do not use machine learning could not achieve the necessary accuracy.

    AMCON Soft successfully implements new IT solutions for the development of the logistics industry. The company has significant experience in logistics and artificial intelligence, as well as in the event of transport and logistics startups. AMCON Soft is able to:

  • Development
  • Modernization
  • Analysis and consultation.
  • Creating business development strategies and plans
  • By creating MVP or POC.
  • Expertise.
  • Therefore, the company cooperates with more than 40 companies, in particular the logistics sector, helping them to develop and modernize. Contact us now to get a more clear answer regarding your own logistics product.


    Views: 1706

    Written by:

    Artem Ramazanov

    Through the 10 years in marketing, I’m establishing partnerships with the reps of various fields in business and managing the aspects of business administration to achieve more success with my company

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