Unconventional Applications of Artificial Intelligence in Logistics Sector
AI Transforms Global Logistics, Boosting Efficiency and Reducing Delays
Artificial Intelligence (AI) is revolutionising the logistics industry, making a significant difference between deliveries arriving "on time" and getting "lost in transit." From optimising courier routes in cities to serving as a digital colleague inside logistics companies, AI is stitched into the fabric of global logistics.
One of the most noticeable applications of AI can be seen in route planning. By taking into account live traffic data, predicted bottlenecks, fuel efficiency, and delivery time windows, AI-driven route planning helps couriers navigate through neighbourhoods with an optimised route that saves both time and fuel. In case of unexpected events like road closures, AI models can instantly recalculate routes, minimising delays and saving valuable time.
AI also plays a crucial role in the last mile of delivery, where promises are kept or broken. By reading the digital breadcrumbs left by each shipment, AI learns to predict delivery delays and suggest alternatives based on data points generated throughout the shipping process. For instance, AI can predict delivery delays and recommend rerouting shipments onto another flight or trigger automatic customer notifications with updated delivery times.
AI is not only confined to the warehouse or the roads; it is becoming a digital colleague inside logistics companies. DHL, for example, has built an internal knowledge chatbot that employees can query for guidance on IT systems, policies, or processes. Over 80,000 staff use this tool regularly, making it the fastest-growing tool in the company's history.
AI is also transforming the recruitment process in logistics companies. AI-assisted hiring platforms can scan thousands of resumes in minutes, identify relevant skills, and match candidates to the right roles, shaving days off the hiring timeline. These platforms can also schedule interviews and generate summaries for managers, freeing up human resources for complex cases that require human attention.
AI is not just a tool for logistics companies; it is an engine that keeps the world moving, especially in industries where there's no room for error. By predicting demand for packages weeks or months in advance, based on various data including past shipment patterns, seasonal shopping spikes, economic shifts, and tariff rule changes, AI helps companies manage risks by ensuring they have just enough capacity to handle demand without resources sitting idle, leading to more efficient and timely deliveries.
Moreover, AI is helping logistics companies reduce fuel costs and carbon emissions by optimising routes and reducing idling times for couriers. AI-powered virtual assistants are handling a large volume of customer inquiries about package locations, understanding natural language, pulling live tracking data, and providing instant answers, thereby improving customer trust.
In summary, AI is transforming the logistics industry, making deliveries faster, hiring smarter, and supply chains more resilient. From route planning to recruitment, AI is proving to be a valuable asset in the logistics sector, ensuring that packages reach their destinations on time and with minimal disruptions.
