Globalpraxis and artificial intelligence: Logistics and distribution

Globalpraxis Partners

When it comes to logistics and distribution, a wealth of artificial intelligence (AI) applications are drastically transforming the industry.

Logistics and distribution encompass the processes involved in planning, implementing, and controlling the flow and storage of goods and services, from the point of origin to the point of consumption. Logistics and distribution programs should be reliable, efficient, flexible, sustainable, and focused on the customer. At Globalpraxis we have seen time and again that they are a crucial – and arguably the most important – component of a successful route-to-market strategy. In multi-client and multi/omni-channel environments in particular, logistics & distribution are key to successful operational execution, customer satisfaction, and of major importance to revenue and cost management. For our part, we have generated significant improvements in both marketing reach and cost efficiency when properly addressing distribution and logistics issues.

And artificial intelligence has helped us take a few steps forward – if not a giant leap ahead – in this regard. Here are some important ways in which AI is augmenting the capability of companies to streamline logistics and distribution for the benefit of all stakeholders.

Route optimization is fundamental for progress in the FMCG industry. AI algorithms can analyze historical data and real-time information to optimize delivery routes, reducing transportation costs and improving efficiency. AI predicts demand more accurately, helping companies with inventory management, optimizing inventory levels, reducing out-of-stocks, and avoiding overstock.

Demand forecasting is a vital management tool and in some industries, those driven by seasonality for example, it’s the most welcomed by managers. Artificial intelligence has significantly transformed demand forecasting processes across various industries. By leveraging AI tools, such as machine learning, neural networks, and data analytics, organizations can enhance the accuracy and efficiency of their forecasting models.

AI-powered demand forecasting systems analyze immense volumes of historical data, including sales figures, market trends, and external factors such as economic indicators or weather patterns. These systems can identify complex patterns and correlations that traditional forecasting methods might overlook.

Furthermore, AI enables demand forecasting at a more granular level, considering factors such as customer segmentation and geographical variations. A dream for any logistics manager.

Another critical issue in the FMCG industry today is last-mile delivery. Companies such as Amazon Prime, Instacart, and Uber Eats, to name but a few, are leveraging technologies and innovative logistics solutions powered by AI to improve their last-mile delivery and enhance overall customer satisfaction. Coca-Cola, for its part, has been exploring various strategies and advanced technologies – including route optimization algorithms, GPS tracking, and real-time analytics – to streamline delivery routes and enhance last-mile delivery.

Where logistics systems are headed today is also very exciting. The autonomous vehicle surge is a major plus for last-mile delivery in terms of cost and effectiveness. Advances in AI and robotics have led to the development of autonomous delivery vehicles and drones. These vehicles can navigate urban environments and deliver packages without human intervention, further enhancing the efficiency of last-mile delivery operations.

And to end, we’ll leave you with a few words about customer experience. AI-powered chatbots and virtual assistants provide customers with real-time updates on their deliveries, answer customer queries, and facilitate seamless communication in general between customers and their delivery providers, thereby enhancing the overall delivery experience and customer satisfaction.