AI in Logistics and Supply Chain: How AI Contributes to Logistics Industry

Nov 27, 2023 5 min read 374
Tanya An-Si-Tek Technical Writer
Alina Shevchenko Project Manager
AI in Logistics and Supply Chain: How AI Contributes to Logistics Industry

At the moment, we can say that Artificial Intelligence and Machine Learning, which is a part of it, are used in software development for almost all business directions. And what's more, this process is not going to stop, but is only gaining momentum, changing established business models. 

With the artificial intelligence utilized in the worldwide cargo drone market which set to increase to 17.88 billion U.S. dollars by 2023, most forecasts conclude that whether we like or loathe the use of AI, it will continue to be a fundamental and impactful part of our society. Meanwhile, this figure is expected to almost double within the next five years. That's why now is the perfect time for AI application development, as it can significantly increase your company's profits and make it more attractive and competitive.

Advantages of incorporation: AI in logistics

It is definitely true that with the right application of Artificial Intelligence technologies, any business can become much better. Surely, logistics can be included in this category as well.  Here are some of the key benefits you will get if you implement AI-powered logistics apps in your operation. 

Optimization and automation of processes

Since Artificial Intelligence is really similar to human mental processes, it is able to find the most optimal solutions in different situations, thus reducing the need for manual intervention. Also, its great advantage is that it can automate almost all the monotonous work of your company. In this way, you will eliminate the possibility of human error as much as possible and be able to quickly find the best variant in a particular situation.

Accurate predictions

Applications that use AI have a unique ability to process huge amounts of information in a short period of time. Thanks to this rapid analysis of historical data, it is possible to get the most accurate predictions. It will allow you to take into account all the details in your work and focus on the best result.

Minimal expenses

As we mentioned above, modern software can automate and optimize the work processes of logistics firms. Apart from these benefits, you also get a reduced expenditure of money and time. You are saving money by being able to cut down on the number of employees who used to do the tasks that can be automated. Moreover, since AI is able to quickly operate on data, you have the opportunity to completely speed up your workflow, thus saving time.

Read also: How to Build Location-Based Applications: Main Features

Examples and Use Cases of AI in logistics

Autonomous delivery

The use of Artificial Intelligence and Machine Learning makes it possible to rely on autonomous vehicles (which do not require human presence and which can autonomously travel from point A to point B) to deliver goods. 

At the moment, the most common types of autonomous deliveries are drones and small robot vehicles. However, such giant companies as UPS and FedEx are already close to switching to the transportation of products by fully autonomous big trucks.

Read also: Food Delivery Mobile Application Development: Cost and Features

Smart roads 

Timely loading and delivery of goods is very important for logistics companies, as these are the factors that ensure the smoothness of all processes as well as customer satisfaction. AI is able to offer a smart road system to transportation vehicles to ensure safety and timeliness.

Programs are able to warn about weather conditions and accidents, notify about parking spaces, traffic jams, possible alternative and faster routes. Special sensors can scan compliance with traffic rules, fuel consumption, and advise drivers on how to make the delivery happen on time despite the various problems that may arise on the way. To experience some of the features mentioned above, you may use common driver routing software. 

‘Backstage’ processes 

There is no doubt that fast delivery of goods is one of the priorities for logistics. But along with this, companies need to keep up with all office processes such as document transfer, preparation of reports, and informing parties about shipments and payments. 

Special applications developed for the logistics sector can make things easier for employees by automating all aforementioned operations. For example, once a shipment is delivered, the program generates an automatic invoice, and other similar things.

Currently, you may see many organizations using chatbots to interact with customers about deliveries or charging for services and so on. All these are real examples of how AI can be applied in the field.

Robotics in warehouses

So, we've already covered the ways in which programs designed for logistics companies can bring benefits in the case of efficient shipping and fast office processes. But, we should not forget about the warehouses from which goods are shipped. 
Today's technologies provide automation of processes in warehouses, that is, special robots can find and deliver the necessary goods to the loading point, provide information about the availability of products in the stock, count the number of remaining units as well as sort them.

Strategic pricing

In order for your services to be constantly in demand and at the same time generate good revenue, surpassing its competitors, you need to spend a lot of time on setting actual prices. Artificial Intelligence offers a solution to this problem. It can help to adjust and constantly update prices based on demand, market conditions and customer behavior.

Working with such capabilities you will be able to get the order at the most favorable price for you and at the same time, the customer will always be satisfied. As an example in this case we can name the world-famous taxi companies, such as Uber, which set prices in their Ai-powered application depending on different external factors. In such a way, they get a good income, and customer’s satisfaction.

Explore our case: Maritime Logistics Software

Logistics software development for your business

If you are in search of AI development companies that can develop really suitable software for your business, then you are in the right place!

Streamline your supply chain operations and optimize logistics with SDH's experienced consulting and development team. SDH has been developing AI-based software for over 15 years! Our experts exactly know how to make the software solution perfectly fit the needs of your business to bring you success on the market and high revenues.

To start working on your project — book an online consultation right now! We will help you determine what AI-based custom solution will be ideal for you!


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