Rise of AI in Supply Chain and Logistics 2021

Rise of AI in Supply Chain and Logistics 2021

AI in Supply Chain and Logistics: Each day is a new opportunity and we come across rapid development in various fields every day. The new technological development in numerous domains with the collaboration of AI (Artificial Intelligence) has transformed the working pattern.

A steep rise in AI has been seen in the field of logistics. Upon its arrival, the fragmented and unorganized logistics sector has modified itself into a seamless management process. While AI and Machine learning have grown their roots into various domains, the influence in supply chain management can bring about a revolutionary change.

The optimization that AI can provide will remove all the human errors and bring forth accuracy, reduce costs, save time and bring opportunities. The increase of productivity with cognitive automation is the goal of AI in logistics.

Here are few benefits that AI brings while collaborating with the logistics sector: AI in Supply Chain and Logistics

Planning and Predictions with Digitization:

Digitization in the field of logistics, will provide planning and predicting unforeseen circumstances. The supply chain sector is an inter-related field, hence a delay or mistake in one process can create a rippling effect on every other stage.

The data explosion in this sector can be minimized and managed effectively with AI. The algorithm is capable of analyzing, storing, and accessing huge data at any time thus bringing accuracy at every stage.

The complicated steps of scheduling, planning, and managing can now be carried out seamlessly. The companies strive for providing a great customer experience and digitization is the process of the same.

Warehouse Robots:

Another aspect of AI is invested and used to enhance supply chain management. The use of robots inside warehouses to track, sort, pick, pack, move and bill the packages can provide regulation and leverage over data platforms and minimize anomalies.

Consequently, the costs of shipping or freight costs are reduced and the supplier delivery performance enhances. The automation of repetitive tasks can provide relief on manpower and reduced costs significantly.

The market for warehouse robots was at USD 3 billion in 2017 and is expected to grow at a CAGR of 11.8% by the end of 2022. They are also capable of identifying damages and therefore take action on the same. Self-driving vehicles, delivery drones, and robotics have automated the logistic industry. The processes have now become accessible, sustainable, safe, and reliable with efficient speed and accuracy.

Big Data Management: AI in Supply Chain and Logistics

The logistic companies have collaboration with several other carriers, staff, airlines, vendors, and e-commerce platforms. These are sources of huge data input daily. The processing of millions of invoices for each source becomes an overburdened human job and can lead to significant errors.

The ability to access and analyze vital information received by the company, makes the logistic sector adopt AI to render better service. The track on the inventory stocks would provide an exact amount of stocks at any time of the day, and the customers would not experience sudden stockouts. This uplifts the customer experience.

The companies can increase their resources without the fear of an increase in costs or time. The operation team would face immense optimization in the existing processes like manufacturing, packing, warehousing and delivery.

The entire back office work which was initially a manual process is now taken over by Robotic Process Automation (RPA) and hence the entire process of scheduling, tracking, generating the report, processing of invoice/ bill and email processing can be auto-generated. The flexibility that AI can provide is unbeatable and hence it is essential to inculcate artificial intelligence in the logistic sector.

Chatbots for Customer Service:

Chatbots play a pivotal role in customer satisfaction and the experience part of the logistic industry. Customer service is the criteria that customers use as a parameter after the products, to analyze a company.

Chatbots can range from calls to texts to native language availability. The simple tasks of providing the details of a package, return or refund of an order, track shipping, or responding to general FAQs can bring about a wonderful customer experience.

Even the chatbots analytics can be used to understand the general behavior of customers and bring improvisation in the company accordingly as this data can be valuable.

Automation in Marketing:

Analytics and marketing play a vital role in fostering the sales of the logistic industry. The sales and marketing industry, when enhanced with artificial intelligence, can rise the slope of the existing graph.

The sales report can be analyzed effectively and focus on the essential prospects that can be brought about. The increase of automation in the niche of email marketing can help in reaching the mass.

The advertisement of the upcoming discounts and sales through effective digital marketing can maximize the sale rate. AI provides precision in marketing analytics which would be an impossible task for humans. This precision is valuable data and when used effectively and efficiently can bring a drastic change in the existing sales condition.

Network Planning and Prediction:

AI is capable of network planning and predicting new opportunities. By proper data analysis, AI can mark the decrease of vehicles for transportation and ensure no deficit in demanding areas.

The allowance of using the resources to their full potential can anticipate the upcoming events, minimize errors, avoid risks and bring creative solutions. The predictive analytics provided by AI in Supply Chain and Logistics management can bring about an incredibly valuable change and implementation of resources and solutions.


AI provides the logistic sector a holistic approach towards customer service. It also saves time and money as it automates the conventional time-consuming processes, error-prone manual work, and optimizes and refines the logistic route. AI has tremendous power and potential to impact the global supply chain, AI in Supply Chain and Logistics.

The prediction of demand and prior planning delivers an unprecedented value to the industry. The major areas in supply chain management include plan, schedule, analyze, forecast, and build a logistic network optimization.

An integrated end-to-end process solves and brings forth opportunities and constraints of all business functions, from manufacturing to delivery. The complex decision-solving criteria with accuracy, precision, and speed have made AI, a dominant force in the logistic sector.

Read More: How AI Chatbots are boosting the logistics and supply chain Industry 2021

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