About the author
Debojyoti Biswas is a seasoned leader in product management, with a proven track record at global giants like Amazon, where he developed new sourcing strategies generating over a billion in revenue. At Maersk, he spearheads technological innovations in shipping and logistics. Debojyoti also successfully launched GoPuff in the EU market, achieving billion-dollar revenue milestones.
Driving Efficiency and Reliability
Let’s face it: Artificial Intelligence is changing the world around us rapidly and irreversibly. In just several decades (and, frankly, mostly in the last two), AI has found countless applications in science, entertainment, and business – and, of course, it has a lot to offer to logistics. And the most obvious benefits of this tech – streamlining operations and cutting costs – are just the tip of the proverbial iceberg. Famous for its scale and complexity, the global logistics industry faces a true AI-powered revolution.
Hello dear reader, my name is Debojyoti Biswas. I have spent over a decade implementing cutting-edge AI/ML solutions in product management, data analytics, and supply chains transforming global logistics. My work at companies like Amazon, Maersk, Oracle, and OYO provided me with a firsthand outlook on how this groundbreaking technology can solve the most complicated problems.
Are you a Data Analyst struggling with the problem of predicting equipment failures before they happen? Or perhaps you are an Operations Manager dealing with delivery route optimization issues? AI provides solutions to these and many other logistical challenges. From planning optimal routes to automating warehouses, AI is the tool that makes logistics smarter, safer, and more efficient. So, if I managed to get you interested – let’s see how AI is reshaping modern logistics!
AI in Shipment
We will start with the very core of global logistics – the shipment of goods over our little planet. For centuries, the logistics industry employed shipment practices dating back to ancient times, relying on intuition, historical data, and manual processes. Today, AI is revolutionising the way we handle shipments.
Route Optimization
Try imagining the sheer complexity of planning delivery routes across cities, countries, and even continents. The challenge is enormous, as we are dealing with an NP-hard problem, the so-called Travelling Salesman Problem, of colossal proportions – and the scale of the problem grows with each additional delivery point. Traditional approaches, based on guesswork and manual calculations, fall short here, unable to digest such vast amounts of data.
This is where AI shines. Analysing vast datasets available to us today, from traffic patterns to weather conditions and from delivery time windows to vehicle capacities and driver working hours, AI determines the most efficient routes, reducing fuel consumption, saving time, and increasing cost efficiency.
Large companies that handle millions of shipments every year, employ sophisticated AI algorithms to optimise their delivery routes. Such systems constantly learn and adapt, ensuring that the routes remain efficient. This means fewer delays, lower costs – and happier customers!
Supply Chain Visibility
Who among us has not ordered a delivery online and then tracked the package moving from one location to another? Now imagine doing the same but with dozens of thousands of shipments moving on hundreds of vehicles between thousands of warehouses, ports, and delivery destinations. AI-powered tracking systems are behind this magic, providing real-time visibility into the supply chain and allowing companies to monitor the movement of goods with previously unattainable accuracy.
To do this, AI integrates data from multitudes of sources like GPS trackers, RFID tags, and IoT devices. This data fusion creates an exhaustive picture of the supply chain and enables dramatically better decision-making. Let’s say, a delay is detected at one point – the system will automatically attempt to minimise the impact on the delivery schedule by rerouting the shipment, rescheduling the delivery, or requesting an intervention by a live human.
FedEx’s SenseAware platform uses AI to monitor shipments in real time, providing updates and allowing for proactive adjustments. If a package is delayed, the system will suggest rerouting options, dispatch a backup vehicle, and even inform the customer about the changed delivery time.
Risk Management
Global-scale logistics carries a lot of risks – from severe weather conditions to political instability and – even in the 21st century – to very real piracy. The traditional way of dealing with such risks is insurance – but of course, not every cargo can be easily replaced, and the additional burden increases delivery costs.
Nowadays, logistics operators employ AI for risk assessment and management. AI-powered systems analyse weather forecasts and historical data to make accurate predictions and reroute shipments to avoid areas expected to be hit by a storm, tornado, or flood. Similarly, AI assesses risks related to political instability, union strikes, and other factors, helping to plan and execute better logistics strategies.
AI in Equipment and Storage
Logistics is not just goods moving merrily from point A to point B – it’s also the vans, ships, and planes carrying these goods. And then there are also these A and B – warehouses dispatching and accepting shipments. This side of the business is as important and requires as much attention as the actual shipping – and AI already plays a major role here!
Predictive Maintenance
Sadly, nothing man creates lasts forever. Equipment – and I mean this in a broad sense, from forklifts to jumbo jets – requires maintenance. The traditional approach relies on scheduled servicing or dealing with breakdowns as they happen – hardly an effective strategy! AI makes possible predictive maintenance, anticipating and preventing equipment failures before they occur.
How this works: AI-powered systems analyse data collected from sensors installed on equipment, monitoring its temperature, vibration, currents, and a lot of other parameters. AI detects patterns and anomalies in these parameters, predicting potential issues like overheating or component wear. It alerts operators that can address failures proactively, scheduling maintenance during off-peak hours. The benefits are reduced downtime, extended equipment lifespan, and decreased maintenance costs.
Warehouse Automation
Warehouses are the cornerstones of logistics operations, and in the global shipment business, this word means everything from a gigantic logistics centre to a dark store near your house. Again, traditional warehouses rely on manual labour for tasks such as stocking goods, inventory management, and order picking and packing. A time-consuming and error-prone work that is becoming completely overhauled with AI-powered systems.
Modern AI-powered robotic systems navigate warehouses 24/7, stocking and retrieving items and executing operator’s orders with the highest precision. They can also manage inventory levels, predict demand and restock items as needed. No human errors, no downtime, and what is perhaps most important – no accidents!
An interesting example of such robotised warehouses is Amazon’s fulfilment centres – Amazon uses AI-driven robots to move entire shelves instead of individual boxes to human workers. If we look at large cargo shipments, there are completely automated warehouses where robotic forklifts pick containers and load them onto delivery vehicles. And this is where we come to…
Autonomous Vehicles and Delivery Drones
When you hear about autonomous vehicles, you probably imagine self-driving cars or those subway cabs with no human driver. In logistics, however, autonomous vehicles and drones are used in a large spectrum of applications, from automating warehouses to last-mile delivery.
These autonomous systems can navigate complex environments, avoiding obstacles and optimising their routes in real time. They work without breaks, which drastically increases delivery speed and reduces labour costs. Moreover, autonomous vehicles and drones can be deployed in hard-to-reach areas considered difficult or unsafe for human drivers, further expanding the reach of logistics networks.
AI vs Other Logistical Challenges
Above, we reviewed several interesting applications of AI specific to logistics, but there are a lot of other possible uses for AI in the industry. Some of them are not as intriguing or even specific to global logistics, but they still play a vital role in the efficient delivery of goods from the manufacturer to a reseller and, eventually, to your doorstep.
Customs and Border Management
If you’ve ever travelled to another country, you know perfectly well how customs can be a real bureaucratic nightmare! The same holds for logistics, only on a much larger scale (read: more paperwork and longer delays). Luckily, AI also transforms these processes, making them faster, cheaper, and more efficient.
AI systems are employed worldwide to automate document processing and shipment assessments, processing shipping manifests quickly and accurately. AI never misses an inconsistency or potential risk, making it possible to exclude the human eye from the process, reducing clearance times and ensuring full compliance with international and local regulations. This AI system can flag risks on improper documentation proactively which can potentially cut the process timelines by more than 20%.
Fraud Detection
Fraud – from counterfeit goods to falsified documents – is a major concern in logistics. AI tremendously enhances fraud detection by analysing transaction data to verify the authenticity of documents and detect data inconsistencies and breaks in established patterns. ML algorithms spot unusual activities, flagging shipments that deviate from expected norms and proactively protecting businesses from financial losses and reputational damage.
Conclusion
I hope that with this article, I was able to show you how AI is fundamentally transforming global logistics, from route optimization and warehouse automation to getting goods through customs and detecting fraud. By integrating AI into its processes, the modern logistics industry becomes more efficient, cost-effective, and reliable, which in the end benefits consumers – you and me. And as AI as technology continues to grow and evolve, I am positive that its role in logistics will only expand.
So, next time you track a package, think of an AI working silently behind the scenes, ensuring a smooth and timely delivery. And maybe give a little nod to the AI for making it all possible.
