Top 7 Use Cases of Generative AI in the Logistics Industry

A study published in 2017 found that businesses that use traditional methods lose up to 6500 hours of juggling operations. On the other hand, as generative AI shows significant potential, businesses deploying it have seen a 6.7% improvement. They are experiencing improved operational efficiency, better sales, and enhanced customer experience.

With the promising scope of growth, nearly 80% of businesses have increased their investment in AI. Also, this integration will increase to 85% in the next three years for supportive tools and perform tasks independently. Generative AI is here to unleash productivity. This is your time to scale up the value of your business with a positive impact.

But what tasks can AI exactly perform? Is it relatable to the AI logistics industry anyway? What are the strategic ways to ways to harness the power of generative AI?

Do you find these questions relatable? Well, find your answers and other insights by continue reading this post.

What is Generative AI?

Gen AI is at the forefront of artificial intelligence, which generates results based on human instructions. The created content is usually a new yet revised form of existing content across the web. The large language models under Generative AI are trained from data to generate natural language responses. It can analyze large data in real-time to provide insights. AI can also serve as a co-pilot for driving productivity and improving operations while reducing the cost of errors.

AI tools best perform the following tasks:

• Generated content for little or no command.
• Summarize or simplify existing data
• Perform intelligent and human-like conversations

Top Use Cases of Generative AI

In the transportation and logistics industry, the implementation of AI generates immediate value in the following instances:

1. Enhanced Customer Experience

Whether express, courier, or international delivery, customers always want instant and regular updates on their orders. Gen AI supports providing real-time status to customers without any extra workforce. Automated updates, emails, and chatbots for customer queries offer the best form of customer service.

Having generative AI-powered applications also enables faster planning and discovery of new sales strategies by focusing on personalized customer communication.

2. Optimized Routes

Planning efficient routes has been a problem for a great deal of time in the freight forwarding business. Whereas the algorithms of Gen AI cuts down route planning time by 80%. It can analyze traffic patterns, transportation data, and other variables such as trade agreements and tariffs to minimize transportation and time. Determining the fastest route also promotes faster delivery methods, sustainability, low operational cost, and minimized carbon emissions.

3. Better Price Quotation

Generative AI models help freight brokerages perform advanced analysis on customer demand, carrier capacity, and market conditions to generate quotes. During peak demand times like seasonal changes or festivals, AI scans through old data to determine order descriptions and current market trends to deliver optimized pricing. The estimated prices are calculated based on the load or type of order entered into the system. AI-enabled tools eliminate the constraints of time-consuming research.

4. Order Processing

Generative AI bots play the most valuable role in facilitating real-time updates to customers throughout the order processing journey. Instead of managing a team to push notifications upon queries, Gen AI assists customers with easy order placing, making modifications, or checking order status. Integrating AI with the backend and order fulfillment system can provide anytime updates and a smooth experience.

5. Quality Control

Advanced AI means quality assurance. It proactively runs checks and finds patterns or problems that humans might miss. It predicts potential issues before they arise by analyzing past data. AI also dynamically adapts to changes in software and generates results accordingly. For instance, if you introduce a weather prediction feature in your route optimization software, the tool will analyze current weather conditions, run through previous data, and suggest a different route during the rainy season to avoid delays.

6. Efficient Fleet Management

Using Generative AI integrated into custom software, logistic companies can manage their large fleet effortlessly. Managing vehicle performance, fuel costs, savings, idling and usage is quick and efficient from a digital assistant in chat like interface. You can simply ask questions and AI uses its algorithms to generate data-driven insights. This way you can discover issues and areas of improvement to improve overall performance.

7. Quick Document Generation

Gen AI can enable efficient finance and invoicing processes through its advanced data processing capabilities. It can get as advanced as you want

Principles to follow when deploying generative AI in transportation and logistics

Having proven use cases is fine, but following a path has significant challenges. You can maximize the success of your deployment plan by following the mentioned principles as a guide.

1. Exploring- Based on your service sector, first identify the pros and cons of generative AI for your business. To get started, search full value of your industry followed by ongoing trends.
2. Planning- Make a framework for all decisions. It helps in cost reduction, assessing data, and performing deep analysis.
3. Pilot- Once your research and planning are done, get an appropriate architecture by identifying data sources, processing data, and an implementation roadmap for deploying it.
4. Scaling- Scale up your business by addressing pain points, integrating systems that solve problems or add value, and monitoring the results. For references take high-value use cases of gen AI models.
5. Innovation- Don’t stop after creating one plan. Regularly conduct reviews of technology and use cases with user feedback.

Execution of building your ecosystem

Keeping current trends and innovation is crucial in the transportation and logistics industry. Gen AI is not just an option but a necessity to stand out from the competitors. However, that’s not all, selecting the right partner to embark on this journey is equally important. A partner that brings insights into the serving industry and a deep understanding of Generative AI technology and its capabilities.

Keeping in mind criticality, Samyak InfoTech highly invests in gen AI and its platform. Our focus is on bringing IT services across all areas with knowledge for the best deployment. We are working with some big partners for whom we are deploying the mentioned use cases.

Things to remember:

Before hopping on gen AI, organizations that are not tech savvy must consider business operational methods and evaluate their scope of tech conversion. This way you can eliminate any complication in taking new initiatives.