Original article was published by Adapt Ideations on Artificial Intelligence on Medium
How predictive insights can enhance the operational excellence of logistics companies
Modern business operations can utilise AI to effectively utilise their current data and transform them into useful insights.
The effective application of data and analytics is one of the least utilised strategies being implemented by businesses. Our world is progressively becoming one that is entirely dependent on technological devices and capabilities. Artificial intelligence (AI) forms the basis of all computing and technological processes that we have become accustomed to. Modern business operations can utilise AI to effectively utilise their current data and transform them into useful insights. A study conducted by Michigan State University in 2019 found that by utilising big data analytics companies could globally free up $200 billion, to be reinvested into different areas. The effective use of analytics can assist companies in enhancing their operational processes.
Predictive insights and AI can be used by the logistics industry to assist with reducing supply chain inefficiencies, increasing transparency, protecting assets and optimising their overall operations. The logistics industry services a multitude of other business sectors, meaning that their long-term success is imperative. The Australian logistics industry is expected to reach $187 billion by 2021 as reported by Ken Research in 2017. The logistics industry holds significant worth for the Australian economy, and its adaption to changing trends and business operations is essential. DataPine (2017) indicates that 98% of 3PL companies believed data-assisted decisions greatly increased their supply chain processes. A further 81% of shipping logistics companies stated that big data analytics will become an integral part of supply chain operations.
Major transportation companies such as Linfox and Toll are already experimenting with artificial intelligence to increase their operational excellence. The two companies have implemented AI-enhanced strategies in their shipment, tracking, reporting and safety of their management processes to reduce occurrences of human error. By reducing human to task contact, logistics companies can ensure the quality of their outputs is consistent with technological advances.
The benefits of AI are endless for the logistics industry. IoT enhanced technology, a consequent result of increased demands for predictive insights enables greater asset control for companies. IoT enhanced devices utilise sensors that can detect set parameter violations and relay valuable data regarding the location and viability of assets. This new evolving machine to human communication is a direct result of increased technological uses in operational processes. For the logistics industry, analytics gained from AI and IoT devices can ensure effective asset management, fleet optimisation and employee safety.