Have you ever asked Siri to set an alarm or timer on your iPhone? Or have you ever asked Cortana to show you directions through your Smartphone? Without realising, artificial intelligence (AI) has now become part of your daily life in today’s rapidly evolving world. Not only making life easier, the new wave of machine and automation have entered the workforce and transformed the way we do things. So how will AI improve logistics and supply chain industry?
AI is no longer seen as mere add-on that supports bigger IT system. Instead, it has brought fundamental change on how the system is built. An increasing number of AI-powered tools are invented to realise an ambition where machines can ‘think’ like human, learn, and make decisions based on the data pools.
According to Accenture’s Technology Vision 2016 survey, as much as 70 percent executives are planning to make significant investments in AI technologies. With AI, supply chain companies are seeking to differentiate their business from competitors, while driving revenue growth altogether.
With growing customer demands for high performance in speedy delivery, progressive companies are moving toward digital transformation to gear up the way business operates.
Possessing the capability to perform tasks that require human intelligence, robotic AI offers much help for organisations to achieve business agility, including logistics and supply chain industry.
DHL’s Logistics Trend Radar 2016 identifies that collaborative robots working alongside humans will support repetitive and demanding tasks in logistics operation. Utilising AI to the logistics and supply chain industry is a great milestone to improve productivity and lower operation costs.
Then the question remains, how can business leaders use AI to revolutionise the business operations? Here’s how:
AI in customer service
More and more business leaders recognise the importance of providing smooth user experience for their potential customers. Owing to which, AI chatbots are increasingly popular nowadays.
AI-driven platforms are employed as the new customer service officers that interact with clients, answer their questions, take their orders, and forward them to the system. Not only efficient, integrating AI to the customer service department will significantly reduce staff costs.
AI in logistics
Autonomous machines enable high-performing operations in delivery and logistics. Self-driving vehicles and drones are increasingly used in navigating seamless logistics operations. Giant players in the industry such as DHL have been relying on self-driven equipment such as autonomous forklifts to carry out smoother movement of goods and services.
AI in warehousing
There have been various advantages of using AI in warehousing and distribution. AI can help employees in stacking, picking orders, as well as checking on available stock.
From big data gathered on the system, AI can provide notifications when companies should re-order the stocks and even create manufacturing schedules. AI also increases visibility, as both supplier and customer will gain access to real-time report about the whereabouts of goods.
AI in demand planning
To drive revenue growth and minimise lost sales, logistic companies should sketch out the right demand planning. AI will help analyse the patterns in demand variations and trends during particular period of time.
Through this method, organisations can predict what products will be on high-demand and prepare them accordingly.