Modern society is increasingly powered by artificial intelligence, from personal home assistants to autonomous vehicles, and the logistics industry is not left out.

That said, artificial intelligence (AI) adoption in the logistics industry has been on the rise, as many businesses have realized its potential to improve performance and service delivery. AI enables logistics companies to improve supply chain visibility, make more accurate decisions, and predict delivery outcomes.

But with all paradigm shifts, adopting AI in logistics can be a challenge for cross-border logistics service providers as it comes in various forms and may require significant operational transformations. This blog explores the concept of AI in logistics for logistics stakeholders and some of the positives that participants can gain from it.

AI in Logistics: What Does It Mean?

As logistics tools, appliances and equipment get smarter and can communicate with one another and human interfaces through the internet of things (IoT), AI in logistics emergence will continue to follow an upward trend. 

AI in logistics basically involves utilizing big data collected from logistics operations and the iteration of this data to develop the best operational outcomes. Artificial intelligence enables logistics service providers to obliterate human limitations and process large(millions if not billions) amounts of data sets within a short period.

Whether using an automated barcode scanning robot or a self-driving vehicle utilizing the underlying function of AI for order fulfillment, the outcome is the best of automation and a surge in output in terms of finance, time, and effort.

Application of AI in Logistics

Avenues of AI utilization in logistics are not limited to a particular segment but rather cut across the entire supply chain from the initial raw material sourcing to the final product delivery. Although for the sake of brevity, we can narrow the practical significance of AI in logistics to the following areas:

1. Warehousing

The process of storing physical products for distribution is one that humans have performed for ages. But the advent of AI in logistics is transforming the status quo. Warehouse automation in cross-border logistics is becoming a trend powered by robots who can scan, identify, sort, and manage products intelligently with minimal human input.

2. Haulage and Trucking

Getting goods from one point to another is a core aspect of logistics which has been riddled with inefficiencies that include: shipping route delays, human limitations, etc. AI in logistics could leverage the vast information out there to navigate some of these inherent disruptions that negatively impact logistics output.

3. Predictive Maintenance

Unexpected equipment breakdowns are capable of causing significant disruptions to logistics operations at all levels and, therefore, must be prevented at all costs. Logistics operations can do with the help of AI-powered data that helps anticipate and navigate inbound issues before they even erupt. Besides preserving logistics operational fluidity, AI also offers preventive mechanisms to prolong the lifespan and longevity of transportation equipment.

4. Inventory Management

Like with warehousing, human efforts have several limitations. Therefore, the ability of logistics companies to accurately forecast demand and supply trends concerning consumer behavioral patterns can facilitate order fulfillment and enhance customer satisfaction and experience. Logistics stakeholders can utilize AI in inventory for the following:

● To optimize inventory operations

● Plan stocking procedures

● Automate stocking and delivery systems

● Predict customer purchase patterns

5. Supply Chain Management

Efficiently managing most aspects of the supply chain can be the difference between profitability and loss for logistics operators due to the growing costs of global shipping. Artificial intelligence can act on shipping data to get optimum shipping routes, rates, and even carrier data. The entire chain can utilize AI for better service delivery and efficiency.

Benefits of AI in Logistics

The presence of AI in logistics brings many benefits to cross-border logistics, some of which are tangible. Notwithstanding, the overarching benefits of AI in logistics revolve around revenue improvements, equipment longevity, and heightened customer satisfaction. Other specific positives that cross-border logistics services can harness from AI in logistics include:

1. Improved Predictive Analytics

AI takes away the guesswork involved in logistics and enables logistics companies to harness the wealth of available data in predicting delivery outcomes.

2. Strategic Assets Placement

Artificial intelligence can act as the basis for logistics players to position their resources and assets in order to minimize operating costs and risks and maximize profits.

3. Enhanced Logistical Planning

Data-powered artificial intelligence can serve as the benchmark for logistics-related decisions against instinct and emotional sentiments. In today’s state of eCommerce, where consumers demand faster shipping and a lower cost, cross-border logistics need to be at their best in terms of organization and operations.

4. Optimizing Shipping Routes

AI’s ability to utilize data in predicting and forecasting supply chains, weather, shipping routes, traffic situations, etc., brings optimization to the forefront. This is particularly helpful in last-mile delivery, which counts for 53 percent of the total shipping cost.

AI Would Play a Greater Role in the Future of Logistics

As the world of logistics evolves, it will be interesting to keep an eye on how artificial intelligence manifests. One glaring thing for logistics stakeholders is that the concept of AI in logistics can no longer be an afterthought. Instead, what would set brands apart in the future is how well they can utilize the enormous potential of this technology to bring about the best in customer satisfaction and loyalty.

Getting products across the entire supply chain does not necessarily have to be an arduous task for eCommerce merchants, especially when they partner with a third-party cross-border logistics service that understands and harnesses the power of AI for efficient service delivery.

YunExpress is one such service provider and is home to over 50 global partners for seamless product deliveries worldwide. Supply chain disruption or not, YunExpress delivers using cutting-edge technology that AI powers. Visit YunExpress for more information on the best logistics offerings to get started today.