In recent years, the logistics industry has undergone several changes. As stated in Statista, the volume of maritime and rail transportation decreased due to supply chain disruptions caused by the global pandemic. However, most companies managed to recover to the 2019 level within a year of the total lockdown.

As global trade was recovering from the economic crisis caused by the pandemic, new challenges emerged, such as geopolitical conflicts in many countries. Add to this the rising fuel costs, worsening environmental conditions, and the increasing threat of cybercrime, and you get a clear picture of the industry’s current situation. You can refer to one of our previous articles for more information on the current challenges. Now, let’s delve into the potential of artificial intelligence in logistics.

Despite the challenges, the global market for logistics services continues to grow. ProcurementTactics reported that its growth rate increased by 5.5% in 2023, with the use of advanced technologies playing a significant role. Specifically, the adoption of AI for logistics allows transportation companies to quickly adapt to adverse external conditions.

The AdvantISS team has compiled a list of digital solutions based on artificial intelligence to optimize the supply chain and address other industry challenges.

An increasing number of CEOs in logistics companies worldwide recognize the significance of automating cargo storage and transportation processes. Based on statistics, most professionals in this industry, precisely 96%, plan to implement AI for supply chain management and other operations.

Below, we will explore examples of software products that are widely used in logistics companies today and are expected to further enhance the industry’s development in the future.

Transportation Management Systems and Route Optimization Software

Companies use Transportation Management Systems and Route Optimization Software to plan and manage deliveries. But what if there’s a way to go beyond the standard functions of such systems? The solution lies in implementing artificial intelligence technology. AI-powered TMS and Route Optimization Software can:

• Optimize transportation routes by processing large volumes of data. The system analyzes the most efficient means of transportation and provides real-time route optimization recommendations.
• Predict vehicle maintenance by equipping them with intelligent sensors and analyzing the data they generate.
• Reduce time and financial costs by minimizing the transport of empty containers.

Warehouse Management Systems 

Warehouse Management Systems are indispensable software solutions in logistics. According to GrandViewResearch, the annual market growth rate of WMS from 2023 to 2030 is an impressive 19%. This trend is attributed to the significant streamlining of warehouse operations through their use. This is especially true for AI-based Warehouse Management Systems, which enable:

• Automated decision-making through machine learning technology. This helps maintain inventory levels, optimize warehouse movements, and place cargo strategically.
• Minimize human labor through cutting-edge AI technologies such as computer vision, natural language processing, and robotics.
• Make AI-based supply chain management as transparent as possible through a combination of machine learning, the Internet of Things, and advanced analytics.

Electronic Data Interchange Systems

Drawing from forecasts, the global EDI market is set to expand from $1.98 billion in 2023 to $4.52 billion by 2030, showing an average annual growth rate of 12.5%. Modern developers strive to enhance data transmission’s security, efficiency, and precision. Specialized AI-driven systems contribute to these objectives by enabling you to:

• Scrutinize documents before sending them by analyzing past transactions and identifying errors.
• Simplify document mapping by accurately matching standard form fields with enterprise-specific data.
• Enhance the quality and reliability of data transmission through process automation.

Fleet Management Software

The market volume for digital fleet management solutions is rapidly increasing. While it was valued at $20.58 billion in 2022, it is projected to reach $79.82 billion by 2030. Companies need to invest in advanced AI-based systems to stay competitive. These solutions offer:

• Reducing the number of traffic accidents by employing AI-based onboard computers. These devices can recognize road signs and moving objects, alerting drivers of potential accidents.
• Assessing fleet safety. AI-based onboard computers go beyond vehicle management, enabling fleet managers to evaluate drivers’ skills and fatigue levels.
• Gathering data about your fleet, regardless of the vehicle’s location, analyzing it, and using it for informed decision-making.

Supply Chain Visibility Platforms

Imagine a universal dispatcher capable of integrating all internal systems of a transportation company and external suppliers and ensuring complete transparency of all operations. AI-powered Supply Chain Visibility Platforms can fulfill this role entirely, granting users the ability to:

• Monitor the status of deliveries in real-time. Every participant in the cargo transportation process can track the order’s status with a single click.
• Elevate customer service levels. These platforms forecast and send notifications about potential changes in delivery times.
• Prevent inventory shortages. Artificial intelligence analyzes inventory levels and potential orders, helping prevent shortages.

Cargo Tracking Systems

Most forward-thinking logistics companies that value their reputation have included the option to track cargo locations on their websites. However, the capabilities of such tools are typically limited to retrieving information about the container’s geographical location when a unique tracking number is entered.

Cargo Tracking Systems powered by AI technology can provide users with many more features. With their assistance, your customers can:

• Access data on the cargo’s condition. Advanced technologies, including IoT and ML, permit the placement of sensors inside containers, providing information about the cargo’s location and its condition (temperature, humidity, potential damage, etc.).
• Track the movement of goods delivered by various carriers. These systems often provide a unified information panel for monitoring deliveries by different transportation companies.
• Analyze the received data and plan operations using AI in the supply chain. The system can analyze the received data, identify the slightest discrepancies, and suggest adjustments to the delivery plan.

Predictive Delivery Platforms

Utilizing predictive analytics for making business decisions is crucial for establishing an efficient supply chain. Amazon, a globally renowned company, is a prime example of this with its practice of predictive deliveries. This method revolves around marketplace analysts predicting where, when, and what products will be purchased based on historical data. Consequently, when a customer orders one of these products, it’s dispatched from the nearest hub, ensuring the shortest delivery time.

You can integrate predictive analytics into your logistics operations through specialized digital solutions known as Predictive Delivery Platforms based on AI. These platforms empower you to:

• Predict demand and efficiently manage inventory and deliveries. AI facilitates demand analysis by identifying patterns in historical data, accounting for factors like seasonality and discount periods.
• Anticipate and proactively address issues in the transportation process. AI-powered predictive analytics enables precise transportation planning by anticipating delivery delays and other potential disruptions.
• Reduce costs and minimize transportation time. One of the capabilities of Predictive Delivery Platforms is optimizing transportation routes by analyzing various factors, including weather conditions, delivery schedules, vehicle speed, and more.

ERP Systems

Enterprise Resource Planning systems are comprehensive software solutions that automate business processes and consolidate financial, supply chain, human resources management, reporting, and other documentation procedures on a single platform. Incorporating AI technology into these systems significantly enhances their capabilities, allowing you to:

• Streamline inventory management through automated data input, advanced analytics, and IoT technology.
• Boost productivity with support for speech recognition. You can interact with the ERP system using voice commands, eliminating the need for traditional text input while handling ERP tasks alongside other responsibilities.
• Enhance efficiency in interactions with customers and suppliers. AI-powered ERP collects and analyzes data about your business partners, providing comprehensive information that can be used to strengthen future relationships.

CRM Systems

Customer Relationship Management systems play an active role in logistics by enhancing customer service quality and carrier efficiency. Developing a CRM system based on artificial intelligence enables you to:

• Implement a personalized approach for each customer. AI analyzes the history of interactions with business partners, allowing you to utilize acquired information to offer relevant services.
• Optimize route planning and warehouse storage. AI-powered CRM systems optimize transportation routes and inventory management.
• Make informed decisions. AI-powered CRM systems handle extensive data, empowering logistics company managers to comprehend market trends, foresee risks, and capitalize on available business opportunities.

The capabilities mentioned above represent just a portion of the potential that artificial intelligence can unlock in supply chain management and various other aspects of logistics. AI and its related technologies, such as machine learning and the Internet of Things, have the potential to revolutionize business practices.

For further insights into current trends and the significance of artificial intelligence, refer to our article ‘AI Technologies – True Value and Forecasts.’

Given the myriad prospects that AI-based solutions open up for the logistics industry, one might assume that most companies have already incorporated this innovative technology into their processes. However, the results of a survey tell a different story: only 7% of respondents actively employ AI in their logistics operations, and an additional 7% are in the testing phase.

Are you interested in joining the ranks of these forward-thinking businesses, constituting the 14%? There’s no better time than now to turn to AdvantISS. Our developers will create a unique AI-powered solution tailored to your specific business requirements.