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Benefits of Using AI Technologies in Warehouse and Logistics Business

Benefits of Using AI Technologies in Warehouse and Logistics Business


By: Brian Obinna Obodeze is a content developer and co-manager at W45 Inc

A couple of years ago, Artificial Intelligent or AI was only an idea portrayed in the world of fiction. Despite the encouraging forecast surrounding it, it was not presumed to be a technology that would seep into the business sector at a rate at which it now does. AI is gaining ground and beginning to prove that businesses must engage it to thrive in the current marketplace.

As a new decade beckon, certainly, AI would completely impact different sections of the business system, with the warehousing and logistics business not far behind. Already, real-life warehousing brands are engaging these technologies to achieve a more efficient economy, given the non-stopping flow of demands from the consumers to producers.

Here are some ways in which adopting AI technologies for your warehousing business would influence more productivity and a boost in the economy of your brand.

  1. Data Refining- The data generated from logistics is not often refined – suitable for algorithmic analysis. Artificial Intelligence comes into play here, helping clean the data such that it can predict the pattern of orders and shipments based on provided information from the cleaned data. It will consider a range of factors such as climatic conditions, economical trend, political atmosphere, and how these would affect the consumer’s needs for a particular season.

AI is likewise fit to organize a volume of data from a rich provision of logistics data, run the data through analysis, and make predictions on trends in supply chain management. It is not just handy in demand, but it would combine all data efficiently for use.

  1. Warehousing- Using AI technology, online supermarket Ocado runs its entire warehouse by robots. The robots move, sort, and lift items that are then stored by employees. The fail-safe technology helps such that products whose demand are fairly low are kept at the bottom of the stack, while products being frequently ordered are placed at the top to guarantee fluid retrieval and distribution when demanded, eliminating clutter and getting more done in less time. Soonest, AI is sure to be integrated into the workplace setting such that it can work alongside employees in achieving efficiency at work.
  2. Accurate Forecasting- AI has a range of fortes, one of which is that it can predict demand and optimize delivery routes. This can help your brand in making pivotal changes to the volume of goods ordered for specific regions, judging by the market demands of that region. The forecasting accommodates the flexibilities of unforeseen developments in weather and economy. The ability of AI to make these predictions can also help in determining the necessary manpower to be distributed to various warehouses, what transport mechanism to be engaged based on the available routes, what devices require servicing and the urgency of this.
  3. Information Processing and Inventory- A buyer who places an order online and receives a proposed delivery date continues with his routine, convinced said order would be delivered. However, accurately compiling the information contained in the order itself could be a tasking job. Upon compilation, you have to ensure the products ordered are validated, assigned to the right buyer, avoid clumsiness in dispatching the products, keep a track as the goods are shipped, then follow up with feedback from the buyer. AI simplifies the whole process and can do so in seconds. Because it operates on predictions generated through data, it can find the quickest route to making the goods reach the buyer’s hands.

Likewise, AI technology will keep track of items as they journey in and out of the warehouse. Rather than having to subject yourself to the hectic work of incessant database updating, AI will accumulate all items cleared out of the warehouse and all items registered into the warehouse and maintain an effective, easy-to-follow inventory system.

  1. Anticipation- Given that AI thrives on patterns, it can suggest alternative plans for executing tasks. Just as life possesses uncertainty, chances of abrupt changes in business are possible. AI can help in preparing contingencies for these developments, and provide measures to forestalling these situations from arising in future times. Its flexibility allows it to keep pace with the different unpredictable situations and incorporate them into its technology.

Certainly, the entire workplace routine will not be automated, but engaging AI technology is certain to serve the user better, save cost, and satisfy all parties.