How AI and Cloud Can Solve Major Logistics Challenges

Namaste!

Taking a Trip Down Memory Lane

Remember that time when you eagerly awaited the delivery of your favorite jeans, only to have them arrive two days late?

Or the time when you were excited about receiving your new shoes today, but the app sent you a notification about a delay?

Or perhaps when your neighbourhood kirana store didn't have that new snack because "Maal nahi aa raha" aka "stock is not being made available"?

The Dire Problem of Logistics and Supply Chain

If you've ever overseen or created solutions for logistics and supply chains, these scenarios might remind you of challenges like inventory management, unpredictable demand, and lack of technology integration. Tackling these issues with extreme limitations can be tough. Road closures, harsh weather, political interventions, goods spoilage, and improper inventory tracking—the list of problems goes on and on.

In the year 2022, the size of the Indian logistics market was around 274 billion U.S. dollar. It was estimated that this market would grow to 563 billion dollars in 2030, at a compound annual growth rate 9.4 percent.

AI Can Solve Some Major Logistics and Supply Chain Challenges

Harnessing the power of data and AI can enable you to drive more intelligent logistics operations and supply chains. Here are some common problems that you can solve:

1. Predicting Inventory Needs Correctly

Imagine having access to real-time data from various sources like sales figures, social media trends, and weather patterns, all seamlessly stored in BigQuery. With Vertex AI, Google’s advanced AI/ML platform, this data is analyzed to build a robust demand forecasting model. This model can predict short-term fluctuations in demand, enabling you to make timely adjustments to your inventory levels.

The benefits are clear: reduced stockouts and overstocking. You’ll always have the right amount of inventory on hand to meet customer needs, minimizing storage costs and preventing lost sales. This means happier customers and a more efficient, cost-effective supply chain.

2. Streamlining your Operations with Route Optimization, Google Earth, and AI

Route Optimisation with Cloud Fleet Routing (CFR)

CFR takes into account traffic, distance, and delivery time windows to create optimal routes. When combined with the Last Mile Fleet Solution, you receive real-time traffic updates and shipment tracking, enabling dynamic route adjustments throughout the day. This leads to faster deliveries, reduced fuel costs, and happier customers.

Geospatial Analysis with Google Earth Engine

Google Earth Engine allows logistics teams to analyze vast geospatial datasets, offering insights into terrain, population density, and traffic patterns. By integrating this data into CFR, you can achieve even more optimized routes, especially for long-haul deliveries or those in remote areas. This ensures your deliveries are not just efficient but also strategically planned for any location.

?Automated Data Extraction with Document AI

Document AI streamlines your operations by using machine learning to extract data from documents such as invoices, delivery receipts, and customs forms. This automation reduces the need for manual data entry, saving time and minimising errors. Additionally, Document AI can process addresses from orders, ensuring accurate delivery locations, which is crucial for optimised routing.

?Synergizing for Superior Logistics

Combining these technologies allows logistics companies to reach new heights of efficiency:

• Cloud Fleet Routing and Last Mile Fleet Solution: Provide real-time route optimization and adjustments based on live data.
• Google Earth Engine: Delivers deep geospatial analysis for better route planning, especially for complex and long-distance deliveries.
• Document AI: Automates data entry tasks, enhancing efficiency and accuracy throughout the logistics chain.

3. Predictive Problems Before They Arise

Predictive Maintenance:

Traditionally, repairs happened after breakdowns. Predictive maintenance uses sensor data to anticipate equipment failure, allowing for scheduled maintenance before disruptions occur. This minimizes downtime and keeps operations running smoothly.

Visual Inspection AI:

AI-powered systems can analyze images and videos to detect damage, defects, or anomalies in products, packaging, or infrastructure. This catches problems early on, preventing issues further down the line.

Contact Centre AI:

Chatbots and virtual assistants can answer customer inquiries about deliveries, delays, or inventory. This frees up human agents for complex issues and improves overall customer satisfaction.

Combined effect:

These AI technologies work together to create a more resilient and reliable supply chain. By predicting and preventing problems, companies can minimize disruptions and ensure on-time deliveries. Additionally, AI can improve communication and transparency throughout the supply chain, allowing for better collaboration and faster response times when issues arise.

Something Fun

What’s Next?

If you are curious about solving a specific supply chain problem, our team can help you with that. Just drop us a quick email to [email protected] and our team will be happy to assist you over a virtual coffee.

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Best

Ruhbir Singh