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  • Yasser Allam

Why Should Logistics and Transportation Companies Use AI Technologies?


The Europe supply chain analytics market size was valued at USD 1.26 billion in 2022 and is expected to register a compound annual growth rate (CAGR) of 15.8% from 2023 to 2030. [1] This shows that logistics and transportation companies play a critical role in keeping the global economy moving.

The Purpose of This Blog According to a recent study in the Netherlands shows that almost 1 in 5 transport companies are looking into AI and ML solutions to support their processes. Of those who say they are not yet oriented towards AI/ML solutions, nearly 71% say they do not have sufficient knowledge of them to judge about them.

Transportation and logistics firms are responsible for transporting goods and raw materials from one place to another, and they must do so quickly, safely, and efficiently. The logistics industry is always evolving, and technology is playing an increasingly important role in making these operations run smoothly. In particular, artificial intelligence (AI) technologies are transforming the logistics and transportation industries in exciting ways. In this blog post, we will highlight why logistics and transportation companies should use AI technologies.


Top Challenges and Risks Faced by Transportation and Logistics Companies

Rising Fuel Costs: Fuel prices are notoriously volatile, and the cost of fuel can have a significant impact on transportation and logistics businesses' profitability. Rising fuel costs can reduce profit margins and make it more challenging for companies to remain competitive.

Supply Chain Risks: Disruptions in the supply chain can be caused by many different things, such as environmental disasters, supplier losses, or even political chaos. These risks can have an effect on transportation and logistics operations by delaying shipments, raising costs, and decreasing the availability of essential supplies.

Technological Advancements: Rapid advancements in technology can be both a challenge and an opportunity for transportation and logistics operations. While new technologies can improve efficiency and reduce costs, they can also require significant investment and training to implement effectively.


Why logistics and transportation companies should use AI technologies.

1. Streamlined Operations


Complex operations that require a lot of coordination and planning are common in logistics and transportation firms. By automating various tasks in the shipping process, AI technologies can assist these businesses in streamlining their operations. Companies can use AI to forecast product demand, manage inventory levels, and optimize transportation routes. In addition to improving the reliability of delivery estimates, this can save both costs and time.

2. Lower operation costs


The logistics and transportation industries can benefit from AI technologies. There are various strategies to lower operation costs. For instance, AI can optimize shipping routes to cut down on fuel costs and the number of vehicles required for a specific shipment. Moreover, the need for high-priced warehouse space can be reduced by helping businesses manage their inventory more efficiently.


3. Proactive Issue Management


AI technology enables real-time visibility that allows transportation and logistics companies to identify issues and potential delays early on, allowing them to take corrective action before problems arise. This can help minimize disruptions and ensure that shipments are delivered on time.

4. Enhanced Customer Satisfaction


AI technologies allow transportation and logistics companies to provide customers with accurate and timely information on the status of their shipments. This improves customer satisfaction and helps build long-term relationships with clients.

Conclusion


The logistics and transportation sectors are undergoing interesting transformations thanks to AI technologies. Companies may streamline operations, increase safety, improve customer service, cut costs, and compete more effectively by utilizing AI. It's safe to assume that the coming years will bring even more fascinating advancements in this sector due to the increasing speed of technological progress.

Logistics businesses can create efficient transportation plans within minutes to minimize logistics costs and maximize fleet productivity using Norma LIVE, which enables you to put your entire express transport planning operation on auto-pilot. It optimizes pickup and delivery operations for the last mile and significantly empowers same-day or immediate delivery services.

Norma LIVE is an intelligent real-time route planning assistant. It gives you full visibility at every step of your journey. No matter what methods or procedures your carriers employ, it makes it quick and easy for you to observe them all.

Download the white paper "Do’s and Don’ts When Choosing a Logistics Partner" to find out tips that help logistics managers choose the right logistics partner.

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