The transport and logistics market now represents nearly 1.8 million jobs in France according to the Ministry of Ecological Transition. The freight transport sector is estimated at €200 billion and represents 10% of national GDP. In this context, artificial intelligence (AI) is profoundly transforming this industry by optimizing processes and reducing costs. Adoption of AI in this sector is expanding and is expected to reach $6.8 billion by 2025. In this article, we will explore 5 notable use cases of AI in the transport and logistics sector.
1. route optimization
AI allows to optimize routes transport by analyzing in real-time traffic, weather and traffic incident data. This optimization significantly reduces transportation costs, greenhouse gas emissions and improves transportation efficiency. For example, UPS has implemented its optimization system ORION AI-based, saving about 100 million miles and 10 million gallons of fuel per year in the United States. This reduction in the distances covered not only allows to save timebut also reduce CO2 emissions.
2. Intelligent and efficient inventory management
Inventory management is a major issue for companies in the transportation and logistics sector. AI systems can analyze historical data and forecast the demand for optimize inventory management, reduce costs related to overstocking and stockouts, and improve disponibility products for customers. For example, Amazon save 20% on its storage shipping charges through the use of AI to anticipate inventory needs. This optimization minimizes the costs associated with over-storage and out of stock, while ensuring optimal product availability for customers.
3. Automation of the order picking
AI, combined with advanced robotics, enablesto automate order preparation in warehouses, reducing errors and speeding up the process. This automation allows companies to make important savings in terms of time and workforce. According to a study by MHI and Deloitte, 80% of logistics companies plan to adopt robotics and automation by 2025. Ocado, for example, has significantly increased order picking efficiency through the use of AI-guided robots in its distribution centers. This automation not only improves the efficiency and accuracy of order picking, but also reduces the risk of workplace accidents.
4. Better management of requests
AI systems like InboxCare from Golem.ai improve the management of incoming requests using natural language interpretation. These solutions make it possible to identify automatically freight tracking requests, extract key information such as customer account number, location, date or order status via API, and automatically send the response to customers. According to a study by McKinsey, adopting AI solutions for request management can reduce transaction processing costs in customer service centers by 30-70%. For example, InboxCare from Golem.ai uses proprietary technology based on symbolic artificial intelligence to automatically categorize incoming requests and generate automatic responses, improving customer experience andfreeing up time for employees.
5. More sustainable and environmentally friendly logistics
Artificial intelligence can contribute to more environmentally friendly logistics in optimizing routes to reduce greenhouse gas emissions by improving energy efficiency of vehicles and fostering transition to more sustainable transportation solutions. According to a study by McKinsey, the United States has committed to 100% domestic ZEA (zero-emission) truck sales by 2040. In addition, companies such as Tesla use AI to improve l’autonomie and performance their vehicles, thus helping to reduce the impact of the transport sector on the environment.
In conclusion, artificial intelligence is revolutionizing the transport and logistics sector through a multitude of use cases. According to a study by Gartner, by 2025, half of companies will have developed orchestration platforms for artificial intelligence, while in 2020, less than 10% of them were equipped with them. From route optimization to inventory management, automation of order picking, improvement of demand management and promotion of more sustainable logistics, AI offers considerable opportunities to improve the efficiency and competitiveness of companies in this growing sector.
