How Can AI Simplify Rigid Processes in Logistics?

Artificial Intelligence (AI) is the talking point across the logistics spectrum. Be it air or maritime, the logistics industry found itself held back by rigid processes. Anyhow, in the recent past, the dynamics began to change.

Optimizing processes, automating functions and more precisely, creating flexible processes are the key elements. Also, tracking end-to-end freight movement, reducing physical documentation and triggering advance information too found its relevance in the due course.

Some say, AI is the future. But it is already changing the market dynamics to a large extent. Transformation is taking place in a faster pace than one could imagine. Here are the key benefits the stakeholders of the logistics industry are reapingwith the power of AI.

Cost Reduction

A freight forwarder is the most important person in the trade. He/she is responsible to collect all documents from the exporter, get the clearances/approvals from the right authorities and get the freight moving. But a forwarder is always bogged down by standing in long queues for approval and making physical paper copies circulated till the nth level.

This documentation cues adds up to the forwarder’s operational expense. With the intervention of AI, document sharing takes place online and a major cost spent on the same is cut down. Well, not only forwarders, several other stakeholders too realized these benefits.

End-to-End Tracking

Be it developed or developing countries, the case of manual intervention in logistics functions exists everywhere. Cargo Handlers did come up with a software suite to manage their operations, but they weren’t aware of what is happening at the Airline’s side or in the customs side. In between all this, the forwarder is not able to see real time freight movement after a point. Due to this communication gap, there is unprecedented delay in the overall operations.

AI enables geo-fencing, electronic seals, bar codes and QR codes for end-to-end tracking of milestones. This means, a forwarder can see the freight movement in regions beyond his/her control and be sure the freight leaves the origin on time.

Triggering Information in Advance

Whenever a trucker is bringing a large pile of freight to the terminal, he is subject to longer waiting time. This is because, a large number of truckers are already waiting at the terminal. Here the gap is, lack of advance information and demand planning.

Predictive analysis is a unique module of AI. With this, understanding future opportunities and challenges are realized which makes way for planning tasks dynamically. Therefore, a trucker can book a specific slot and take the freight when other trucks aren’t at the terminal. Cargo Handler is ready with essential resources to handle the exact freight capacity.

These advanced and unique capabilities, deeply rootedAI in the logistics industry. Right from autonomous vehicles to 3D printing, there are various advancements happening. Added to this, slot management, order booking and other such processes are also getting smarter with AI.

Beyond all this, integrating standalone software applications with cargo community systems for trade facilitation is the talking point. Therefore, the rigid processes will no longer exist with the advent of AI.