Do you own a logistics business and look forward to opportunities that’ll pave the way for a competitive edge? Start by improvising the internal business mechanism, for instance, eliminating human errors and enhancing productivity!
How will you do it simultaneously?
Seems like Artificial Intelligence is the missing puzzle piece and can do wonders for your business processes. Notably, AI software comes with a set of algorithms that enables acquiring data-driven insights, processing information faster, and generating error-free results.
According to Accenture’s reports, AI is proved to be a highly compatible technology for a business like logistics.
So, how would you leverage AI into your logistics or transportation business? Fortunately, this article contains everything you need to know. So, let’s get started!
Use Cases of AI in the Transportation Industry
Apparently, AI has become a driving force for companies like Amazon, FedEx, etc.
Continue reading to learn more!
1. Route Optimization
Notably, Machine Learning is a sub-niche of AI that may work as a perfect solution for the Vehicle Routing Problem. It generates an optimal route to depots for customers while reducing the expense and number of vehicles.
But how does AI in logistics work? Here’s how:
– Information like place of departure, destination, and time is selected by the user within the logistics app.
– Further, AI algorithms start working on the data and consider numerous factors, including weather conditions, traffic, etc., for generating the best routes.
Some logistics applications direct notifications on the driver’s smartphones, giving them a heads up on nearby gas stations, restaurants, etc., on the go!
For integrating the best features into your logistics app, don’t forget to hire the best app development company!
2. Number of Sales and Shipping Volumes
Another top-notch use case of AI in the transportation business is transforming the historical data from the records into a data-driven tool for figuring out the total sales and shipping volume.
For instance, Transmetrics is a platform that enables users to acquire detailed insights on historical reporting and allows detecting trends and inefficiencies in the working mechanism.
3. Fleet Management
Leveraging artificial intelligence enables transportation businesses to keep a check on their fleet management for analysis of possible failures and upcoming repair schedules.
Nowadays, this software is also incorporated with IoT devices like sensors for easy interpretation!
Undoubtedly, the entire credit goes to these modern technologies that help fleet managers acquire a detailed record of their vehicles, fuel used, vehicle location, driver availability, and whatnot.
4. Vehicle Tracking
Now that you know how well AI works for fleet management, real-time vehicle tracking is not much behind. Notably, AI, along with IoT, gathers the location data of each vehicle and forwards it to a local gateway via a mobile connection. Furthermore, the information is transferred from the gateway to a network server, which is then sent over to a cloud-based server.
Challenges Faced by the Transportation Businesses
Every business faces its share of ups and downs, and here’s what logistics and transportation businesses go through in the absence of advanced technology:
1. Rising Fuel Costs
An increase in fuel cost leads to increasing operational expenses, due to which logistics businesses charge more to keep their profits coming.
2. Absence of Transparency
It is vital for any logistics business to keep track of their fleet’s location by leveraging a real-time tracking system. However, the absence of its transparency may lead to unexpected losses.
3. Challenging Big Fleet Maintenance
If you’re managing a large number of trucks while the maintenance team is small, it can be hard to keep them in a proper condition since vehicles require close monitoring.
Therefore, if in case a vehicle breaks down on the go, it’ll incur more expenses due to freight delivery, the requirement of a tow truck, etc.
In a Nutshell
The fact is not hidden that Artificial Intelligence and Machine Learning will highly support the logistics business and help in its growth. Therefore, the chances are that businesses adopting these technologies may acquire a competitive edge in a jiffy, while others are still trying their luck!
So, what is your idea about developing an app that bridges the gap between your logistics business and its customers?
If you’re in support, get in touch with the top mobile app development company in India for further insights.