How is AI and technology aiding the logistics industry?
- Ankit Mirani |
- Transporter |
It has always been an inconclusive debate of whether technology is a boon or bane to humanity. But considering the current dependency of every known industry on technology, the stakes certainly tilt to the former. Artificial Intelligence is the top technological innovation that has the most application in the industrial world. But firstly, one has to learn what Artificial Intelligence is. In simple terms, technology is called artificial intelligence when a machine mimics human interaction and mind. It can be as simple as a lever mechanism or as complicated as a mechanical robot.
Equipped with the disciplines of mathematics, computer science, psychology, and linguistics, AI emerged as a formidable contender to humans in the industry. An AI machine can replace any routine function or a defined systematic task in the industry.
Role of AI in Logistics -
With the movies depicting AI as heavy artillery, it is no wonder that its place in the logistics industry comes as a surprise to many. To completely grasp the role of artificial intelligence in logistics, one should understand the logistics industry. Logistics is the process of obtaining, storing, and transporting resources from their point of origin to their destination.
Though logistics might seem like a simple affair, the scale of the resources that need to be managed changes the game in the logistics industry. And in developing nations like India, the efficiency and aid of technology in the industrial space has the potential to push the economy by leaps and bounds.
Current involvement of Artificial Intelligence in Logistics in India-
In the present digital era, most functions are shifting to virtual management supervised by human intelligence rather than direct human involvement. In India, the Logistics industry contributes to 14% of the Gross Domestic Product (GDP) of the country. In this perspective, it becomes a necessity rather than a luxury to provide efficient and quick services in the logistics industry, which is where AI comes into the picture.
Logistics in India are estimated to become the largest job providers by 2022, which shows how deeply this industry is intertwined with the development of India as a nation. Logistics is no simple task, and it involves many functions that can be categorized into multiple levels like warehouse management, supply chain management, packaging, and delivery. This is why many companies like Transportganj emerged in India as logistics and transportation companies dedicated to logistics as a separate and essential entity.
Starting with warehouse management and supply chain management, AI and machine learning greatly help cut costs by efficient inventory organization and accurate demand predictions. Data collected at the administrative level are fed into the AI-assisted software, which calculates with great precision the demand for a particular product.
After this, the next step is acquiring the products accordingly and managing the inventory, where AI comes as a great help.
Considering transportation in the logistics sector, in India, 60% of the goods are transported via road and 32% by rail. With a nation as big and populated as India, effective management of transportation is key to customer satisfaction. Incorporating AI and machine learning in this domain has immensely helped the logistics sector. The tracking of real-time data, providing the shortest possible routes and alternate routes, assessing factors that affect transportation like weather conditions & traffic, and voice assistance are notable AI involvements in the transportation category of logistics.
AI like robotic arms and CNC machines have taken over packaging. This not only diminishes the cost of labor and increases productivity but also increases workplace safety. Machines are capable of working 24X7 and even with potential chemicals that might be hazardous to humans.
From all the information above, it is not a surprise that the future holds great potential for the involvement of AI in the logistics industry in India. And with a predicted growth rate of 10-12% of logistics as an industry in India, AI will be the cutting edge factor in the development of the sector.
I'm Ankit Mirani.
Founder of Transportganj.
welcome to India's One and Only Unique Digital Transport Network...