Artificial intelligence has been taking the world by storm, contributing improvements and optimizations across industries. In the world of logistics, AI technology has helped increase productivity, lower operational costs, enhance safety, and improve planning and forecasting capabilities. As supply chains and logistics grow more complex, sophisticated technology like artificial intelligence helps improve automated decision-making, predictive analytics, robotic process automation, and real-time tracking and visibility.
Within the realm of artificial intelligence, natural language processing and machine learning works effectively to build the most efficient systems. Simply put, artificial intelligence is the theory and development of computer systems that perform tasks that normally require human intelligence. This can include visual perception, speech recognition, decision-making, and language translation. Natural language processing is the combination of computational linguistics and machine learning models to allow computers to recognize, understand, and generate speech and text. Machine learning is the development of computer systems that are able to learn and adapt without manual instructions, using algorithms and statistical models to analyze and infer from data.
Inventory management systems have utilized artificial intelligence far before this recent tech boom using AI-driven systems which allow for the minimization of manual inventory tracking and accurate assessment of product demand and inventory data. AI technology can analyze historical data to predict future inventory needs and using image recognition can help verify inventory levels, minimizing overstock and shortages. This also lends itself to increased sustainability and waste reduction which helps minimize environmental impact and improve companies’ dedication to better environmental practices.
Chatbots are a common example of AI on the communication front for many companies, and 3PLs are no different. Chatbots claim to allow for more efficient customer service, lower costs, and higher consumer satisfaction levels, however at H&M Bay, we find there is no replacement for a human response on the other end of the line in order to deliver the optimal customer service experience.
“I have attempted to apply AI in some specific use cases where I know there is tremendous opportunity to improve our results and/or reduce costs. So far, our proof of concept (POC) projects have not shown enough promise that we have fully invested in them at the end of the POC,” said H&M Bay IT Director John Walker. “I firmly believe these will come to fruition, so I give every viable vendor the opportunity to show their abilities. Chatbots are the low hanging fruit, but at H&M Bay we believe our personal touch sets us apart, and management isn’t interested in automating responses to inquiries, beyond providing a self-service portal for our business partners to use for routine inquiries they prefer to do online,” added Walker.
On the road, route planning and autonomous vehicles are exemplary of AI technology. Navigation systems that are powered by AI can help optimize routing for the trucking industry, utilizing their algorithms and predictive analytics systems. Not only does this minimize drive time, but it also increases fuel efficiency, helps with faster delivery, and saves costs. GPS trackers, RFID tags, and other IoT devices are imperative to efficient supply chain logistics. Autonomous vehicles are an advanced demonstration of AI with vehicles having feature cameras, radar sensors, and other automotive features. Autonomous vehicles are also increasingly relevant within the warehouse where they help to improve the efficiency and safety of warehouse operations.
While we are not encountering autonomous vehicles among our H&M Bay carriers as of yet, in the world of temperature-controlled 3PL, artificial intelligence has been shown to improve climate control which lends itself to saving time and money, and preventing waste. AI technology can read temperature and humidity levels, ensuring that ideal climates are not compromised, and the products are kept at their necessary temperatures. Additionally, 3PL software integration is helped by artificial intelligence, which can improve coordination between stages of the supply chain, provide real-time information and insights, and optimize the collaboration between transporters, suppliers, and warehouses.
With its ability to efficiently compile and analyze data, AI technology allows for companies to make data-informed decisions across sectors and functions. With so much technology being implemented so fast, the jury is still out on how adept AI will be in replacing certain industries. While the long term impact of AI on our industry remains to be seen, for now it seems there is still a meaningful role for human engagement within the optimal supply chain experience. H&M Bay takes great pride in its exceptional, award-winning service and while it is open to the impact that new technologies could potentially have on our business, we are committed to quality engagement with our valued customers above all else.
https://kellerlogistics.com/blog/ai-in-the-logistics-industry/
https://ecommercefastlane.com/how-is-artificial-intelligence-transforming-3pl-warehouse-management/
https://cwi-logistics.com/warehousing-news/ai-effects-on-warehousing-industry/
https://www.gcca.org/magazine-article/the-smart-warehouse/
