FERO, an AI-powered,  freight management platform in the UAE, is said to have launched the world’s first AI enabled Voice- Agent in the logistics industry in 2019.  This step has brought about a great revolution in that industry where almost 95% of the total activities, in just any transaction, involve monotonous, repetitive tasks that are manually done. Artificial Intelligence(AI) is the technology that is replacing human interactions and virtually removing any scope of human error in the logistics industry. Let’s find out the top10 AI-based Use Cases for this industry.

1. Planning & Demand Forecasting

Planning is a major task in the logistics industry. It requires fine coordination between suppliers, customers, and various units within a logistics company. Machine Learning(ML)solutions are apt in dealing with varied scenario analysis, numeric analysis, and these two are significant components for planning. This way AI-ML solutions facilitate planning activities that are efficient and productive to the company. Also, the real-time data captured by AI-enabled video analytics and other capabilities help a logistics company in the decision-making process. AI-ML-based demand forecasting methods like Auto Regressive Integrated Moving Average (ARIMA) reduce the error rate as compared to traditional methods.

2. Automated Warehouse Robots

AI-powered warehouse robots help in the supply-chain management of logistics companies. The market for Warehouse Robotics in 2016 was valued at 2.28 billion USD. For instance, in 2012, Amazon had acquired Kiva Systems and then in 2015, changed its name to Amazon Robotics. At present, Amazon is reportedly having 200,000 warehouse robots. These AI-powered robots help human workers in varied ways- picking & sorting, transporting of materials, packages-stowing, and so on.

3. Visual Inspection & Detecting Damages

Logistics businesses can utilize AI-powered Computer-Vision technology to identify damages in their materials before supplying them to customers. In this way, AI helps them to take action on time as after identifying specific damages, they can now measure the depth as well as the type of damages. Thereafter, actions are taken accordingly.

4. AI ML Predictive Maintenance

 Machines are connected with IoT–sensors in factories.  AI-ML Predictive Maintenance detects and predicts any sort of potential failures in machines. It analyzes the real-time data that are collected from IoT- sensors in machines. These ML-powered analytics tools facilitate predictive analytics capabilities by identifying specific patterns in sensor data. As a result, before any failure occurs technicians can do the needful by taking appropriate actions on time.

5. Autonomous Driving Vehicles

Autonomous, self-driving cars have a big role to play in the logistic industry anywhere and the UAE is no exception either. These autonomous driving cars are transforming logistics by reducing the need of depending heavily on human drivers. AI-powered technology like Platooning takes care of drivers’ health as well as safety concerns. The very technology also helps to reduce harmful carbon- emissions,  vehicles’ fuel usage. Google, Tesla, Mercedes Benz are taking a huge interest in the concept of autonomous vehicles and are heavily investing in them.

6. Delivery Drones

In the logistics industry,  delivery drones are AI-powered, IoT sensor-based machines that ferry logistic products from one place to another. These drones help logistic companies in the smooth delivery of products to all those places where the ground- transfer cannot take place and is not safe or reliable for human drivers.

7. AI Pricing Analytics

AI-based analytics such as Dynamic Pricing is a real-time pricing software that uses Machine-Learning algorithms for analyzing historical data of customers. The real-time pricing helps get a response triggered by any sort of changes that occurred in the prices, viz., demand-supply, competition-prices, subsidiary-product prices, and so on. AI-ML pricing analytics use real-time customers’ data and respond to varied fluctuations in demands, adjusting prices accordingly.

8. Optimizing Routes  

AI-based models help logistics in the UAE for freight management and optimizing routes. The very model analyzes existing routing and tracks the most suitable routes possible at that time. Route-Optimization helps in identifying the aptest and most efficient routes for varied logistics trucks. It works like, it uses some shortest path algorithms in a graph-analytics discipline. This helps in the huge cost reduction in shipping, increasing the speed of the shipping process, too. For instance, Valerann’s technology for smart roads, an AI-web-based data and traffic management platform, captures data delivering consistent information regarding road conditions to varied autonomous cars or vehicles and users on the roads. Though this Valerann’s technology currently active in Europe and Israel, the AI model is indeed suitable for the UAE roads. No doubt, it can save numerous lives by reducing accidents, as well as predicting congestion on road.

9. AI-powered Hyperautomation

AI-powered hyper-automation automates back office, manual tasks. It is also known as intelligent Business Process Automation(BPA). The very technology combines the massive capabilities of AI, RPA, Process-Mining and automates end-to-end processes in the system. Several logistic back-offices tasks can be automated, such as Scheduling transportation and tracking packages in warehouses, report generation, processing of rate-sheets, bill of lading(BOL), invoice preparation, all help communications between suppliers, buyers, logistics service providers. RPA bots, based on analysis of the content of auto-generated reports, help in emailing between stakeholders.

10. Customer Service & Sales

AI-based chatbots help logistics in customer service by handling low-to-medium tasks of call centers. For example, for delivery-request, changes in order, tracking of shipment as well as responding to FAQs. AI- applications in sales & marketing help, too, the logistic businesses in many ways. For example, Enabling sales representatives in getting lead scores, making them focus on the right prospects. Helps them in email marketing, more precise marketing analytics, and so on.

UAE – All geared for AI Logistics

The UAE is renowned for Artificial- Intelligence technology adoption in varied industries. Logistics being one of the most expanding ones in the UAE market, the country is already leveraging the massive scope of AI capabilities in all the domains of logistics. From autonomous machines to predictive analytics, AI is helping the industry a great deal. As per Mckinsey, 87% of AI adoption in logistics is majorly done in four business units – product & service development unit, service operations business unit, supply-chain management, as well as marketing & sales unit. Irrespective of what several researches say, the top 10 use cases of AI justify all the investments being done in this sector.

If you are looking to optimize your transportation and logistics operations and reduce the cost – We can Help.