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7 Challenges in Logistics that AI Solves

cal 2020-02-26 | Appentus | View : 1476

Appentus blog

These 7 Challenges in Logistics that AI Solves cover the diverse issues that companies face when deciding whether to retain an existing supplier or venture into the prospect of new supply chain technology. There are many sources of data for analyzing supply chain issues, and these are usually most effective if they address the needs of the organization as a whole, as opposed to a limited number of the factors involved.

For example, an organization with a large retail location may be considering investing in a new in-store software application or new office space, even if it is only to relieve some congestion issues at one or two locations. If all the places that make up the store are feeling the same congestion, and a new office will only generate an additional expense, the new software application may not be the best course of action.

  • Limited Resources: It is very easy to start with the issue of finding new supply sources or expanding an existing relationship, rather than face the issues due to scarce resources. To correctly evaluate the situation, it is important to take the time to understand how the different elements of the supply chain interact. AI can resolve this issue by offering the latest management tools for logistics and supply chain. 
  • Issues In Supply Chain: For example, an organization that is going through a period of transition due to the competitive environment might be ready to cut back on support or some of their staffing levels. While a company may be eager to hire an expert that could make a big difference, the company would be better off evaluating their IT resources. Every aspect of the information system and database is critical to the smooth operation of the business and having access to the most efficient and affordable solution will often provide a better return on investment.
  • Managing a Large Amount of Data: At the same time, the company must consider the fact that the entire process of processing goods, transferring them from point of origin to end-user, is necessary to determine the quality of the final product. If the company is going to explore alternative routes to manufacturing, it must have a holistic understanding of what is happening at each step of the supply chain. Failure to carefully plan out the supply chain can lead to significant shortcomings in quality control. With so many decisions needing to be made, a company must also consider that sometimes the decision has already been made. Sometimes, the change is due to external events, and the resources are more efficiently allocated to meet the change.
  • Improving Supply Chain Efficiency: For example, an organization may have invested in a warehouse that was planned to handle freight from the beginning. However, the port environment changed, and other customers became interested in using that facility. The company can assign some of the existing employees to become bridgehead workers so that they are working on building a new supply chain infrastructure.
  • Enhance Customer Experience: As well, it can be difficult to find ways to get the resources and equipment needed to manage these operations. However, if the company is willing to assess what their current facilities and equipment can handle, and then consider developing some additional equipment or bringing in new technology to handle these activities, they can save money and experience the level of efficiency that they need.
  • Personalize Customer Experience: AI powers the logistic companies to personalize the customer experience to enhance the user experience and the supply chain. It offers to improve the supplier and the customer relationship by offering complete personalization in terms of goods and services. 
  • Supply Chain Dormancy: One of the main issues faced by logistics is Supply chain disruptions which lead to less productivity and performance. Lack of equipment and technology can be one of the reasons behind this efficiency. With AI it can be improved and can enhance the productivity and performance of the business. 

Of course, one of the most unique elements of artificial intelligence is that it understands the underlying business problems that an organization is facing, and it then can design solutions that address those needs. For example, in the case of transportation, it can implement maps and schedules that make sense to the company, as well as the different forms of transportation. There are several other examples of where artificial intelligence can use its intelligence to help the organization to resolve issues, to improve the quality of customer service, and to enhance the functionality of the operations of the supply chain. No matter what the size of the company, the benefits are endless.

Artificial intelligence is the most cost-effective way to increase efficiency for any business and can help increase productivity and save money in the long run. It can also create a more relaxed environment within the company, and offer opportunities for innovation and growth, both of which are vital to an organization's future success. If you have been thinking about transforming your logistics business into automation then contact Appentus technologies. 

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