The future of distribution and the grocery supply chain is here. And that future is technology. Specifically, artificial intelligence (AI). AI is an exciting part of the changing landscape of logistics, especially within the food and beverage sector.
In this post, we're going to be looking at what AI is, how it relates to machine learning, and most importantly, the specific roles it can take in the logistics sector.
What is artificial intelligence?
To start, let's cover what artificial intelligence is. Because while most of us have an idea of what AI is, it's probably a little too close to what we’ve seen in the movies. And don't worry, it's not as scary as you might think!
Put simply, artificial intelligence is any software that can mimic human behavior — think the voice assistant on your phone. Something else that might spring to mind is the algorithms that show you Google results but this isn't quite the same.
The difference is one is mimicking what you do, while the other is doing something you probably couldn't do.
To be clear, there is some overlap between artificial intelligence and robotics. The primary difference, though, is that robotics mimic physical activities while AI focuses on behaviors, such as decision-making. These technologies can work together, but they aren't the same thing.
Artificial intelligence vs machine learning
Another area of tech that is frequently lumped in with artificial intelligence is machine learning (ML). ML is unique from AI in that it doesn't necessarily mimic human behavior.
Instead, ML just refers to software that is capable of taking different actions automatically depending on what data it has been fed. It can also "learn". For instance, an ML program can spot a pattern in a series of data, allowing it to tell the difference between a cat and a dog.
What AI accomplishes can be aided by what ML accomplishes, which is why the two technologies typically go hand-in-hand. Machine learning is more or less the brains behind AI, while AI is what communicates and takes actions based on what the underlying ML is telling it.
What can artificial intelligence do today?
Today, there is a lot that AI can do. And tomorrow, there will be even more! This is one of the fastest-growing areas of tech, poised to completely redefine what we see computers being capable of within the next decade alone.
Currently, it can make art, tell stories, help businesses make decisions, parse through vast quantities of data, drive vehicles, identify objects or irregularities in photos, and much more.
Rather than looking at AI as some intimidating, next-level technology, think of it as the next step in computing. It can open up doors for tech that might otherwise never be opened.
How is AI being used for logistics?
Now that you have an idea of what AI is and what it's doing in today's world, let's take a closer look at how it's impacting the world of logistics. Below are several of the key ways that AI is redefining this field for the better.
Predicting demand
AI is being used to streamline the logistics sector by improving businesses' ability to predict demand. Demand is something that, by its very nature, can be very difficult to stay on top of.
Demand is difficult because it can come from nowhere and it can disappear very fast. This can cost your business opportunities or cash, depending on how invested in a demand trend you are.
Fortunately, AI can remove the complications around demand predictions by interpreting data better than we can. It can spot patterns that you can't, allowing you to make better decisions around demand.
Managing your supply
AI can also be used when managing your supply. Predicting demand is one way that it can do this, but there are several other ways as well.
For instance, AI software can always be monitoring your inventory in real-time, detecting when inventory is moving fast or slow, correlating this with demands, and looking to your supply chain for availabilities.
And, importantly, it can do all of this at once. These are tasks that a manager would normally handle, attempting to gauge all of this data simultaneously. An AI, though, can truly access all of this data at once, making it the more accurate solution.
Warehouse automation
When you think of using AI to streamline your logistics, warehouse automation encompasses most of what likely comes to mind. You can use AI to take over a variety of tasks that are currently being completed by workers, allowing you to train staff for more specialist roles.
It can also be used to cut costs, shorten your production cycle, reduce errors, and so on.
Faster and more cost-effective shipping
Another key use for AI in logistics is in improving your shipping. The most common way that this is accomplished is by using AI to optimize your shipping routes.
This optimization takes unexpected factors into account to quickly determine the quickest and/or most cost-effective route, allowing you to deliver goods and materials faster and cheaper.
Predictive maintenance
In the logistics sector, there are a lot of moving parts. Literally. There are a lot of components that can break down, fall apart, need repairs, or otherwise fail.
Unfortunately, these repairs and breakdowns typically don't come at a convenient time. It's usually unexpected, expensive, and slows down your operations.
But fear not, AI is changing this. It can be used to predict when machinery and equipment are going to fail, giving you the edge when handling these challenges. Rather than being caught by surprise, you'll be able to predict and solve issues before they come up.
Improving customer service and marketing
An area that AI has already started streamlining in logistics is customer service. AI can be used to fill a variety of roles in this area, reducing the pressure on your customer support staff, spending up response times, and improving the experience for your customers.
A great example of this at work can be found in chatbots. Chatbots, or chat assistants, are simple AI programs that customers can talk to. They can be used to answer questions and solve simple problems, acting as a buffer between your customers and your support team.
AI can help with marketing too, generating content, promoting materials and products, and ensuring that you have a strong, positive online presence.
Informing your decision-making
One of the more powerful use cases for AI in logistics is by informing your decision-making. Making decisions is one of those tasks that you likely do so frequently, you aren't even always aware of it.
However, the decisions you make for your business can have huge ramifications. An AI can be a tool to help you assess those decisions, anticipate outcomes, and otherwise better consider the moves you're making.
Automated deliveries
An exciting use of AI for customers, as well as your business, is automated deliveries. This can be achieved through AI in a few ways, most of which are just on the horizon.
The first and most obvious use for this is self-driving vehicles. These vehicles largely rely on AI to make decisions and drive safely, and can be a way of delivering packages faster and more efficiently.
Secondly, drone deliveries are gradually becoming more widely used. Again, AI is key to making this possible by steering the drone to its destination.
Dynamic pricing that changes in real-time
Pricing, like most decision-making, is something that can be challenging to keep up with. Again, AI can be a big help in this department.
Businesses can use AI to automatically change prices in real-time based on demands, availability, and competing prices. This can help you make more sales and increase profits without letting prices get too high or too low.
Handling basic office work for you
Nearing the end of our list of uses for AI are basic, day-to-day tasks. As with most automation, this is something that AI is particularly good at. These are any tasks that you do each day that take up a lot of time but don't feel particularly impactful. "Busy work" is another way to think of these types of tasks.
Whether that's checking emails, updating spreadsheets, moving data around, etc., AI can probably do it for you. It's just about training the AI to understand your work and then passing it off to take over for you.
Fast damage detection
The last major way that AI can help you streamline your logistics is by instantly detecting damage to products and materials. This is something that every business needs to do already, but largely, is done manually.
Doing this manually takes time, man-hours, and is prone to mistakes. An AI can help you catch damage faster, removing damaged goods from the supply chain and giving you more time to mitigate their impact.
How can AI be used to streamline your logistics?
So those are the many ways in which AI is being used to streamline logistics. Many of these are practical, some still cutting-edge, but all very likely to be taking place within your warehouse over the coming years.
But how can you decide where to invest? Which AI benefits can you start reaping right away?
To help you get started, here are three key areas you can start using AI in right now.
Take advantage of underutilized data assets
First and foremost, AI can help you take advantage of underutilized data assets. If you're using software at various levels to manage your workflows and services, then you're probably collecting and generating more data than you know what to do with.
AI is the perfect solution to this issue. It can take in all of this data and use it for a variety of purposes, such as helping you make better decisions and cutting back on redundant areas of operation.
Automate and accelerate processes
Another great use for AI that you can take advantage of is having it automate and accelerate various processes throughout your workflow. This can save resources and help you be more productive at the same time.
Predictive analytics to reduce the unexpected
Last but not least, you can use AI to expect the unexpected. Changes in demand, supply chain disruption, incoming opportunities — AI can help you anticipate and prepare for these events.
Streamline your logistics with Buffalo Market
Streamlining your logistics isn't something that you need to wait on AI to do for you. You can start investing in your logistics today by partnering with Buffalo Market! Reach out to our team today and discover new opportunities with our services.
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