AI in Logistics: How AI Can Improve the Logistics Sector

Knock knock – AI’s got your package! A decade or more ago it was rarer to have a package delivered to our front door by anyone other than the humble postman. But, since the advent of Amazon and other online shopping platforms, the profile of the world of logistics has been raised significantly as logistic agents knock at our doors.

Like in many other industries, Artificial Intelligence (AI) has been leveraged to optimize the logistics sector. BonVision Technology for instance, helps its clients by utilizing sophisticated AI rules to allocate available resources to process containers which are being conveyed by cargo aircraft. Factors such as priority of the package and type of goods, as well as flight and pick-up schedules, are all drawn upon to enable AI to make the best possible decisions.

Others have affixed AI into cloud services to deliver previously unseen efficiencies in the complex and fragmented market of logistics suppliers and customers. The transportation company C.H. Robinson functions as a “freight broker”, pairing those who wish to ship with those that can deliver. AI helps with everything from price prediction to securing and managing the inventory of trucks available to transport loads. Leveraging years of professional expertise in pricing, deliveries and overcoming disruptions, the AI has learnt how humans tackle these challenges and attempts to apply that knowledge.

Rather than replacing humans, the AI tool has served to make employees more efficient, allowing decades of experience located in a handful of team members to be utilized by a much larger pool of people due to the democratization and improved accessibility of information.

It’s unlikely that an autonomous vehicle or robot will be ringing your doorbell in the near future, but your next day delivery of that must-have Black Friday bargain may have been made cheaper thanks to AI.

Varsha Shivam

Varsha Shivam

Varsha Shivam is Marketing Manager at Arago and currently responsible for event planning and social media activities. She joined the company in 2014 after graduating from the Johannes Gutenberg University of Mainz with a Master’s Degree in American Studies, English Linguistics and Business Administration. During her studies, she worked as a Marketing & Sales intern at IBM and Bosch Software Innovations in Singapore.

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