The logistics industry is experiencing a rapid transformation, with AI (Artificial Intelligence) technology playing a pivotal role in reshaping the way businesses operate. Recently, Descartes Systems Group organized the "2023 Descartes Innovation Forum for Broker, Forwarder, and Customs," during which experts discussed the influence of AI in logistics. In this blog post, we'll explore the impact of AI on the logistics industry, as discussed during the forum.
AI Learning and Evolution:
The logistics industry, like many others, is in the process of learning and adapting to the opportunities presented by AI technology. The rapidly evolving AI landscape has made it challenging for companies, including logistics service providers, to grasp the full scope of possibilities. According to a recent survey conducted in the supply chain community, it was revealed that over two-thirds of respondents (68%) were not currently using AI in their operations. For many, it's an "AI crawl, walk, run" journey, and they are looking forward to utilizing AI in the future for more agile decision-making.
AI Use Cases in Logistics:
One of the most prevalent AI use cases in logistics today is estimated and predictive Estimated Time of Arrival (ETA). AI technology enhances accuracy in predicting ETAs, which is crucial for effective logistics operations. AI is also integrated into the operating systems of autonomous mobile robots in warehouses, making them more efficient and precise.
Another exciting development in AI is Generative AI, which is in its early stages of utilization. It has a wide range of applications, with one of the most prominent being in customer service. AI-powered chatbots, equipped with technologies like ChatGPT or Bard, are becoming capable of answering customer queries about order and shipment status quickly and efficiently. This not only improves customer service but also offers a cost-effective and scalable solution.
In the field of procurement, AI chatbots are being employed for negotiations with suppliers. Major companies like Walmart have initiated the use of AI chatbots to negotiate with equipment and transportation suppliers, streamlining the procurement process.
Generative AI is also being integrated into the user interfaces of supply chain and logistics software applications. Instead of sifting through various reports and dashboards, users can now engage in a conversation with the system to obtain the information they need swiftly. This conversational interface expedites decision-making processes, providing a substantial time-saving advantage. In the future, Generative AI may enable companies to create visual maps of their supply chains with relative ease. The arduous and time-consuming task of supply chain mapping can be automated with the help of AI. By feeding the AI engine with relevant supply chain data, it can generate graphical supply chain maps, simplifying the visualization of complex logistics networks.
AI's impact on global trade is also significant. Trade compliance professionals can use AI to facilitate HS classification, making it easier to assign HS codes to items based on their attributes. AI can improve Denied Party Screening by highlighting potential matches and reducing false positives, leading to more efficient screening processes.
These examples are just the beginning. As AI technology continues to evolve, we can anticipate the emergence of numerous other AI use cases in logistics. AI is set to revolutionize the industry, enabling logistics companies to operate more efficiently, improve customer service, and optimize their supply chains. The logistics landscape is poised for significant transformation, with AI technology leading the way into the future.
