85% of logistics managers feel they lack visibility into their supply chain. This represents a real problem for being able to react quickly in the event of unforeseen events. But is it really possible to predict the unexpected?

In any case, this is what the digitalization of the Supply Chain for logistics optimization aims to enable.

Thanks to artificial intelligence, what seemed impossible a few years ago is now possible. In addition to being able to anticipate the unexpected, AI coupled with machine learning algorithm  and data analysis make possible many solutions aimed at optimizing business logistics.

Artificial intelligence for better inventory management

What product needs to be where? When? These are questions that logistics managers in a company constantly ask themselves. Having this information in advance is a considerable weapon for supply chain efficiency. This is exactly what artificial intelligence allows us to achieve.

Artificial intelligence is then used to help logistics managers in the management and management of their stocks. From multiple data (stock and order histories), AI can predict needs and suggest decisions to be made. It can even predicting consumer behavior depending on the time of day, the weather, world events, etc.

Thanks to artificial intelligence, the company avoids the overstocking and the costs associated with the latter as well as the sold out causing delivery delays.

Automation of order preparation

Artificial intelligence also makes the work of order pickers much easier, thanks to automation. In this way, they can save time in their tasks and also gain in productivity.

To achieve this, artificial intelligence guides robots that move alone to collect goods and deliver them to the right place. It is then possible to optimize movements in the warehouse for faster picking and lower error rate.

In addition to the benefits regarding the efficiency of order pickers, their working conditions are also improved thanks to AI.

Automated parcel sorting using artificial intelligence

Artificial intelligence can also be used to optimize the sometimes complex flow of parcels. Just like for order preparation, AI can control robots responsible for transporting parcels to their destination area. Stock reception, dispatch, order preparation, packaging : finally, artificial intelligence can intervene throughout the supply chain.

To avoid errors, artificial intelligence is able to read labels and identify products through optical reading. Sorting orders is then faster.

Parcel flows, particularly with the rise of e-commerce, are intensifying and require optimized structuring. AI is once again a valuable tool in automating this stage of the supply chain. It also makes it possible to drastically reduce labor costs, which of course motivates more and more logistics players to integrate robotization, automation and artificial intelligence into their processes.

More efficient inventory thanks to AI

To optimize your logistics as much as possible, it is important to know the precise location of each product, but this can be very complex when the warehouse is large and the products numerous. It is then easy to lose track of certain goods.

To avoid this problem, artificial intelligence intervenes to allow teams to work more quickly and efficiently by automating the inventory of products to keep it constantly updated. This avoids misplacing certain products while constantly knowing where they are. This automated inventory is made possible thanks to a drone equipped with an on-board camera that can read barcodes and which itself carries out the inventory by passing over the shelves in each department.

AI for better monitoring of goods flows

Today's consumer is increasingly demanding when buying online. In particular, they appreciate being able to benefit from total transparency regarding the delivery of their goods. Allowing them to benefit from a detailed tracking is therefore important.

To achieve this, logistics optimization must then focus on monitoring the flow of goods. Having better visibility of this monitoring is just as beneficial for the performance of operators, who can more easily react in the event of delays or unforeseen events and warn the customer.

Artificial intelligence is then used to predict as accurately as possible the arrival of a product at its delivery location, taking into account the weather and road traffic. The estimate of the day and even the time of arrival is then more precise.

Optimizing delivery routes using artificial intelligence

Delivery is the last step in the supply chain. It is also the most complex and the one that involves the most risks and unforeseen events (transport vehicle breakdown, accident, absent customer, traffic jam, etc.). Reacting to these unforeseen events is complicated, anxiety-provoking and time-consuming. Fortunately, here again, artificial intelligence provides solutions.

Thanks to AI, companies have the possibility to optimize the delivery route in real time by taking into account the context of the field. Artificial intelligence analyzes a multitude of data (sector constraints, traffic conditions, times of passage, etc.) and uses Operational Research algorithms to optimize the delivery route plan. AI also makes it possible to anticipate delivery peaks or to better distribute packages to reduce costs and improve the working conditions of the delivery person.

In summary, artificial intelligence applied to the transport and delivery of goods is capable of provide information extremely precise (delivery time, size and weight of the package, area to be delivered, etc.).

The customer can then benefit from a better delivery service and of course it is their satisfaction that will benefit. We must not forget that a satisfied customer is a customer who is more likely to be loyal. They can also help improve the company's image by leaving a positive review on social networks, for example.

Finally, the advantage of using AI for delivery optimization is also environmental. By optimizing routes, the company reduces its greenhouse gas emissions. Relying on artificial intelligence for logistics optimization is therefore just as much an ecological commitment.

Supply Chain Info