Last mile delivery
AI can improve the overall efficiency of delivering packages and on time. There’s nothing more frustrating than finding out that a package is late and with demand only increasing among consumers regarding shorter delivery/shipping periods, there’s little room for error. By using delivery and route management algorithms powered by AI, the last mile delivery issue is more of a streamlined process and opens up more opportunities to be smarter about warehousing and shipping, as previously mentioned.
Another issue with last-mile delivery is its impact on the environment and the level of carbon emissions that is impacting the air quality-it’s a big deal. AI has the power to manage routes more intelligently by using collected data to manage shipments more effectively and efficiently. By using machine learning tools, companies can make adjustments to routes, drivers, and schedules throughout the day based off of that data in response to varying conditions in order to reduce late deliveries and miles.
Anticipatory shipping and predictive analytics
AI makes things like anticipatory shipping and predictive analytics happen. Powerhouse companies that have a huge hand in offering fast deliveries (like Amazon) rely on AI to take advantage of predictive analytics. Based off of historical data, algorithms and machine learning are used to determine certain outcomes. Using these algorithms and user data will allow logistics companies to manage their fleet based off of that data. For example, data may help determine the number of delivery drivers needed at any given time or the amount of shipments typically delivered in a certain geographic location to improve delivery routes and scheduling based on historical delivery patterns.
“Anticipatory” shipping is a ship that is being led by Amazon. Before a consumer has even purchased an item, the idea is to use historical data and AI technology to predict future purchases thereby reducing delivery times. For example, if a particular location has a history of purchasing a particular item of clothing, an online retailer will use that data to make sure those warehouses are stocked full of that item that is closest to that location. AI has also learned about surges in particular products around the holidays and will ensure that several holiday lights, ugly Christmas sweaters and on-trend gifts are as close to your address as possible so the minute you confirm your purchase, your shipment is already halfway to its final destination.
Moving forward, the logistics industry is taking full advantage of AI and its capabilities in order to battle increasing costs and to find solutions to optimize operations.