In the fast-growing and highly competitive logistics sector, automation is now a must. Recent innovations in the form of artificial intelligence (AI) are radically changing business dynamics. The potential of this technology to increase productivity is almost unfathomable. This has a positive impact on both the profitability and efficiency of companies and their ability to stimulate economic growth.

Figures from the Federal Public Service Economy from 2023 show that 12.5% ​​of Belgian SMEs now use at least one AI-based technology. AI is used even more frequently in large organizations (47.9%). This means that our country performs better than the European average: 7.4% for SMEs and 30.4% for large companies.

The increasing use of AI also offers new opportunities for companies in logistics. Using data from connected devices, AI can generate interesting insights for Robotic Process Automation (RPA) solutions. This makes it possible to automate simple and often repetitive tasks for employees, allowing them to focus on more strategic and valuable tasks.

Artificial intelligence allows us to accurately predict demand for goods and services. In this way we generate possible scenarios based on current market conditions. This gives logistics companies the opportunity to use their resources efficiently, plan their transport routes and optimize inventory levels. The result is a reduction in operating costs that are a challenge today: gasoline, labor and vehicle maintenance.

It is important for industry players to have a tool that provides predictability and allows them to reduce costs and overcome hurdles in processes. This will be an indispensable tool in the coming years.

Operational efficiency and a better customer experience

The use of AI in logistics is a trend that will push the boundaries of the industry. In any case, the implementation of automated solutions in the logistics industry and supply chain offers companies new potential. You can work with large amounts of data, analyze everything in real time, identify trends and anomalies, and make decisions that bring tangible benefits to the organization.

Here are four reasons to integrate AI and machine learning-based connectivity tools:

1. High return on investment (ROI)

Fewer kilometers, less fuel consumption, shorter travel times and therefore higher productivity. Thanks to machine learning techniques, more deliveries can be made with fewer vehicles, which of course leads to cost savings. These improvements not only concern the operational aspect, but also affect the management processes of logistics, including customer service, customer loyalty, availability and visibility for all departments.

• High availability paired with security

The Software-as-a-Service (SaaS) model is a trend that companies are increasingly adopting. This approach eliminates the need to purchase, install and maintain software. All you have to do is pay a monthly fee and get access to numerous functionalities that are always up to date and comply with current legislation.

• Integration into a system

Integrating platforms with a single provider has several advantages. For example, the ability to rank tasks in order of importance, including route planning, last mile Execution and confirmation of delivery. The route planning tool combines information about customer restrictions, vehicles, service times, routes, rest areas and other details to create an optimal route.

• Overall traffic transparency (both customer and order)

Today’s technology provides real-time visibility of trucks, routes, orders and customers across all functions of a business. This makes it possible to compare what is planned and what has already been implemented, to view the location of drivers and to evaluate their performance. Analytics tools also generate reports and dashboards, simplifying route management and adjustments.

Due to the speed at which the segment is growing and increasing customer expectations, AI will soon become part of companies’ strategic direction. They must optimize their efficiency, improve their service quality and maintain their competitiveness in a market as dynamic and resilient as logistics.

Diploma

Implementing AI in logistics operations is the next crucial step towards modernizing and optimizing processes in this sector. With its immense potential, AI will be an essential tool for the future of transportation and logistics. It is important to integrate these tools into existing systems and adapt processes in order to derive greater benefit from them.

It is also important to be open to adapting and acquiring new knowledge and skills that will prepare companies for the changes that AI brings. Strategic implementation allows companies to remain competitive and meet the demands of a market that never stands still.

This is a post from Kenneth Wood, EVP Product Management at Descartes. Click here Further information about the company can be found here.