As businesses grow, so do their logistical needs. Whether it’s higher volume or shipping to new markets, companies need their transport and customs processes to continue to be smooth and efficient. AI in logistics can ensure this happens, even for at-scale or time-critical demands.
Microsoft has estimated these innovations could cut costs by 15% and boost service levels by 65%. Our team has long been considering how best to integrate AI technologies into our systems. Having quietly evolved these processes and tools over a number of years, this technology, alongside our human experts, is now making a real difference to our customers.
How is AI being used in logistics?
Firstly, it’s important to distinguish the difference between AI and automation. Although the terms are used interchangeably and the technologies can work together, it’s important to understand the distinction between the two.
Automation technologies can complete defined tasks with little to no human intervention. This can range from basic jobs such as scheduling emails, to complex processes such as invoicing or data-driven marketing.
AI is a term that encompasses different types of technologies which can replicate elements of human intelligence. This enables them to make decisions, reason and interact with humans to complete more advanced tasks, such as making suggestions, analysing data or processing language.
Automation has long been used in logistics to perform tasks such as warehouse picking and packing, planning transport and inventory management. Now, AI assistants are removing low-value, repetitive work from logistics processes, allowing human agents to focus on areas where they can add value, such as validation, judgement, problem-solving and customer service.
For example, our business is now using AI assistants to:
- Compare live jobs against historical ones to see if any efficiencies can be made or to integrate information into a forecast
- Check delivery windows to make sure transport planning is as efficient as possible
- Review GPS data and monitor traffic conditions to avoid delays
- Cross-reference logged events to detect errors and improve shipment visibility
By using this technology to check through large data sets quickly, humans can spend the time saved addressing any potential delays or issues that it has flagged. This is a more valuable use of their time than manually checking hundreds of data points.
Similarly, our colleagues no longer have to manually extract data from invoices as part of the customs declaration process thanks to Docloop technology. This platform reads invoices in multiple formats and languages, and puts key data fields into structured data for import into C4 systems. Colleagues can then validate information and deal with more complex customs issues.
What are the benefits of using AI in logistics?
Introducing AI technologies into logistics is already having a positive impact on our customers, including:
- A dramatic reduction in customs quality issues, with human agents having more time to run validation checks
- Faster processing times, with some declarations completed in minutes thanks to Docloop automated data capture
- Bottlenecks removed at peak times, with AI dealing with basic tasks at scale and humans free to improve efficiency
- Fewer manual tickets are created because AI can deal with basic tasks quickly
- Increased consistency and accuracy thanks to the extra value dedicated to human validation
In short, even if transport is time-critical and customs declarations need to be processed at scale, using AI for certain tasks means they can be done quickly while giving human agents the space to add value to the customer experience.
Does this mean logistics will now be run by AI?
There has been a lot of hype and worry over the potential for AI to replace human colleagues. However, as we’ve worked with these technologies, it’s become clear that AI is not a perfect solution. It still needs oversight to ensure accuracy, consistency and compliance. That’s why AI isn’t replacing our customs team, it’s acting as an assistant.
For example, while AI processes the data and highlights the fields that need checking, humans perform the validation processes and are responsible for managing consistency and accuracy. Our team also plays a key role in training the systems over time to make sure they work effectively for our customers.
What does the future in AI logistics look like?
Even as AI technologies develop, there are certain tasks that only humans can perform effectively. In the case of logistics, AI can process information, but it can’t take responsibility for elements like compliance. This means it’s likely that soon, AI will be able to:
- Automate quotation requests from email
- Run automatic pricing calculations
- Assist humans to allocate drivers
- Auto-generate milestones and updates
However, humans will always be responsible when a request or incident falls outside of the standardised process. Such as:
- Handling exceptional customer requests
- Monitoring and dealing with driver welfare and incidents
- Managing border issues and live disruption
- Having difficult conversations with customers when problems occur
How can C4 customers benefit from AI?
AI technologies are great at taking non-value tasks off the desks of human agents. This means expert teams like ours have the time to focus on what actually matters, whether it’s validating critical data, making decisions in sensitive situations or taking accountability for problems.
Several years ago, we started looking forward to the impact of AI. This means we now own our own systems and have fully integrated these technologies into our business. This doesn’t just put us ahead of competitors, but means we’ve invested in the right tools and implemented them effectively to improve accuracy, speed and service without losing the human edge.
Interested to hear more? Get in touch.