Logistics has been an integral part of the supply chain and business models. Unlike the past, businesses have now started to focus on its development for which they look up to new age technologies. Artificial intelligence (AI) is one such technology that holds the potential to leverage logistics to overcome present challenges.
Retail logistics face the most challenges as it directly caters the consumers and is widespread making it more complex. Logistics currently needs to predict consumer needs, goods demand, a simpler process, and streamlined workflow to remain unhindered and profitable.
The Role of AI in Efficient Inventory Management:
Digitalization is bringing in new opportunities and is opening new doors for the automated world. The ever-growing technology has entirely changed the functioning of the corporate world. With the advent of robots to assist humans, the efficiency and productivity of the company are witnessed more evidently.
Industry 4.0 is already revamping the way businesses work across the supply chain. Using Artificial intelligence, sensors, and IoT, a smart and data-driven distribution system can be developed. As AI offers a list of benefits, the supply chain network can have a more significant economic interest. With the help of these technologies, distributors will no longer predict demand for products through guesswork but would instead make accurate predictions, enabling them to make well-informed business decisions.
1. Inventory Efficiency
AI can help in predicting future demands and also forecast the demand of suppliers based on the previous orders. This helps in forming crucial decisions in optimizing stock levels. For instance, if AI lets a distributor know that many other distributors will demand the same equipment in the coming time, the chances are high that he jumps the queue and gets ahead by ordering it much sooner.
2. Cost of Goods Sold
What happens when the inventory level isn’t optimized? The cost of goods sold (COGS) decreases as one is not able to incur the costs of holding inventory beyond its use. According to a report by IHL Group, a research firm, in 2015 the value of overstocking was $470 billion, while the understocking cost was $630 billion worldwide. Hence, freeing up cash and storage space creates the potential for savings.
3. Reduction in Lead Times
As industry 4.0 empowers supply chain to manage different orders fast, lead times for customers were shortened automatically. However, this leads to an increase in the pressure to deliver products on time and that too every time. To overcome this problem, AI enables one to spot loopholes in an organization and also build and maintain a long-lasting relationship with their customers.
Whether AI implementation is on the want list or not, ensuring data collection and storage is a good idea. Adopting AI for inventory management can help in avoiding poor decisions as well as provide information for new investments; the success of technology depends upon the data quality. However, expecting all this overnight is too much.
The Key Benefits of Intelligent Transportation :
By definition, smart transportation is an approach that integrates modern technology into transportation systems. This involves cloud computing, wireless networking, services dependent on venue, computer vision, and other connectivity enhancement methods.
Consider the role traffic lights play on the road to better understand how smart devices have altered transportation. This technology’s simplest version runs on timers and helps prevent collisions. Smart lights fitted with sensors and suitable processing algorithms simultaneously identify nearby passengers and loop through the lights to make the transit quicker and safer.
Here are three benefits of intelligent transportation:
The needs of all people who wish to use the transportation system must be included in intelligent mobility in each region. For those with disabilities, smooth transit and creating a path, and paying for transportation via a single mobile app will significantly improve the quality of life. Irreplaceable elements of a smart transportation system are also numerous hearing and speech aids and accommodations for wheelchairs, service animals, and other unique products.
The entire intelligent mobility system relies on optimizing transportation. In the long run, combined with decreased pollution, electric vehicles will reduce carbon dioxide emissions and increase energy usage. By making public transport efficient to get from one stage to another as private cars are, the infrastructure is also becoming more tolerant of sustainability.
These days, many road accidents happen because of human error or inadequate knowledge about one’s surroundings. Smart transport can help decrease the effect of these variables. The contact networks between commuters are likely to be broadened by driverless vehicles, semi-autonomous helper systems, and connected cars and to provide technical assistance where human senses appear to fail.
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