AI and Smart Technologies in Logistics

Artificial Intelligence & P R E S E N T E D B Y,
Smart Technologies D R I S YA K
in Logistics ROLL NO 27
O P E R AT I O N S
According to Mckinsey research, the logistics industry has adopted AI mostly for 4 business
functions;
service operations,
product and service development,
marketing and sales, and
supply chain management.
These four business units cover 87% of AI adoption in logistics.
• Demand Forecasting – a technology that • Companies that use custom demand
works in the basis of inventory and orders forecasting models, obtain accurate forecasts
data. Using it, companies can predict the that help them decide what additional capacity
demand for shipments and products in their is required, how to routes and times of
supply chain. transportation, and what to do to improve
cargo vehicle capacity and asset utilization.
• Logistics companies need to evaluate capacity
demand based on the combination of historical
data, including inventory data and order data.
They implement forecasting models for better
decision making.
• Automated Warehouses
• Autonomous Vehicles
Rolls-Royce’s Success Story- Rolls-Royce is working with Intel to develop self-driving ships.
Rolls-Royce released the Intelligence Awareness system in 2018, system that is able to classify all the
nearby objects under the water. It can also monitor the engine condition and recommend the best
routes.
• customer experience - through personalization, suggesting products and customizations tailored

specifically to their buying habits and preferences.
• Automating manual office tasks/ back office

Automating manual office tasks
Scheduling and tracking: AI systems can schedule the

transportation, organize pipelines for cargo, assign and
manage various employees to particular stations, and
track packages in the warehouse.
Report generation: Logistics companies can use RPA
tools to auto-generate regular reports that are required
to inform managers and ensure everyone in the company
is aligned. RPA solutions can easily auto-generate
reports, analyze their contents and based on the contents,
email them to relevant stakeholders.
Invoice/bill of lading/rate sheet processing: These
documents help communication between the buyers,
suppliers and logistics service providers.
Document automation technologies can be used to
increase the efficiency of processing.
• Smart logistics that uses AI and IoT can
help ports, shipping companies, suppliers
and agents optimize resource utilization
and their schedules.
• Optimized route planning
• Pickup optimization
• Wa r e h o u s e m a n a g e m e n t
• Transit operation optimization
• Load exchange optimization

How can carriers identify if the deliveries are done efficiently or
not?
• Predictive analytics algorithms • IoT devices (sensors) are • The obtained data is also used to
can ensure on-time and in-full embedded in trucks, trains or notify people about delays
delivery, i.e., fleets arrive on ships; they feed data like engine along with the load/unload
time, and goods are received and performance, speed (or weight, activities, trucks heading to the
moved on time so that shipments temperature, humidity – literally same destination and product
are delivered to customers when any countable data) and send it delivery requirements. As a
they want it. to the carriers. Based on the result, all this ensures
received data, logistics minimized delays and fulfilled
specialists can model and customer expectations.
predict the estimated arrival
times and engine failures.
• Optimized route planning using AI and IoT • Warehouse Management
• Loads can be assigned for pickup to drivers • Certain combination of AI and IoT can facilitate
based on their current location: a driver nearby carrier and warehouse collaboration.
can pick up a load and deliver it to a certain
• For example, IoT sensors equipped in a truck
place. send the real-time location of the truck
• Pickup Optimization
• An AI-based model can predict which truck
should picking up goods at a certain time in a
certain place. If a truck is supplied with certain
IoT sensors/devices, it is possible to gather
information about the temperature under which
goods are stored, the real time of the goods
• Transit Operations Optimization
• IoT-enabled sensors, AI in combination with GPS sensors installed in trucks can provide its real-time location
based on which AI model evaluates the estimated time of arrival and track transit operations in real-time.
• Load Exchange Optimization
• When a truck gets overloaded or gets into an accident, truck drivers have to wait for a long time to find alternative
options. But IoT and AI can help reduce the wait time by capturing real-time data and would allow quick exchange of
load from one truck to another.
• IoT sensors would capture the information about the delay of the truck and a new vehicle will be assigned
automatically to exchange the load and deliver it to the final destination. GPS devices installed in the truck provide
information, including latitude and longitude, real-time location of the vehicle and motion of the vehicle. So, carriers
can quickly determine the condition of a vehicle during an accident and react accordingly.
• Business Intelligence and Reporting
• companies can generate valuable reports that showcase all the data about logistics providers in a scorecard format.
Factors, including on-time pick-up and delivery, capacity commitments and driver behavior are assigned metrics that
help users determine the performance of carriers.
Conclusion
Artificial Intelligence and the Internet of Things are disrupting logistics and transportation

management by making logistics operations more smarter day by day.
It is expected that delays in pickups/deliveries and trucking capacity concerns will become a
matter of the past when AI and IoT come into use everywhere.

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Artificial Intelligence & P R E S E N T E D B Y,

• customer experience - through personalization, suggesting products and customizations tailored

• Automating manual office tasks/ back office

Scheduling and tracking: AI systems can schedule the

• Optimized route planning

• Transit operation optimization

• Load exchange optimization

• Load Exchange Optimization

• Business Intelligence and Reporting

Artificial Intelligence and the Internet of Things are disrupting logistics and transportation

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