World AI Week: AI and logistics in 2024

World AI Week is celebrated from the 7th- 11th October 2024, and, here at OneAdvanced, we are using it as an opportunity to reflect on adoption, innovation and what’s next.

Our 2023/2024 OneAdvanced Sector Trends report revealed that 18 percent of distribution and logistics leaders were using AI tools and 37 percent have started to research them. In this area of technology, the state of play evolves at a breakneck pace. Watch out for our upcoming 2024/2025 OneAdvanced Sector Trends report to be the first to know how many distribution and logistics leaders are adopting the technology a year later. In the meantime, to celebrate World AI Week, get inspired by stories of how logistics companies are implementing AI to boost efficiency and drive positive outcomes...

Reduce menial tasks

One of the most significant benefits of AI in logistics is its ability to reduce menial tasks. The logistics industry is replete with repetitive tasks that consume valuable time and resources. These include scanning packages multiple times, re-entering information into different databases, and manually updating transport management systems. AI solutions can integrate various programmes and automate processes, thereby eliminating unnecessary steps and reducing the administrative burden on workers.

Consider an operator who needs to update their transport management system with thousands of shipment emails a day. This labour-intensive process is not only time-consuming but also susceptible to human error. By leveraging AI, the system can automatically extract the necessary information from these emails and update the database. This automation not only saves time but also significantly reduces the likelihood of mistakes, and allows employees to focus on more strategic tasks.

Boost sustainability

Sustainability is a key priority for many logistics firms today. With increasing awareness about environmental impact and stringent regulations, companies are seeking ways to reduce their carbon footprint. AI can play a pivotal role, powering optimisation and reducing waste, through predictive analysis.

Take DHL's AI-powered OptiCarton software, for instance. This innovative technology improves the packing process by filling containers with the perfect volume of parcels, much like a game of Tetris. This saves up to 50 per cent in shipment space, reducing the number of truckloads required and thereby cutting down on emissions. By leveraging AI, logistics firms can make significant strides towards sustainability while also improving operational efficiency.

Effective fleet management

Fleet management is another area where AI is making a substantial impact.

For example, AI-augmented dash cams can detect signs of driver fatigue and send alerts, flagging unsafe behaviour in real-time. This proactive approach can significantly reduce accidents and ensure the safety of drivers and goods alike. AI-driven traffic management systems can provide real-time updates on traffic conditions, helping drivers avoid congestion and choose the most efficient routes.

Innovation such as this means that almost half (48 per cent) of UK fleet managers are either already using AI or planning to do so in the next five years.

World AI Week 2024 is a time to celebrate the incredible advancements in AI technology and its transformative impact on the logistics industry. From reducing menial tasks to enhancing data accuracy and streamlining supply chain management, AI offers numerous benefits that can help businesses stay competitive in a rapidly evolving market.