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AI is coming. How can it optimize internal logistics?

Managers in charge of internal logistics are well-accustomed to unforeseeable events, such as sudden unavailability for transport units and very urgent, unplanned priority orders, and they are often faced with challenging decisions, such as choosing an optimal transport route under constantly changing conditions.

The stress induced by this kind of unpredictability is accompanied by the usual method of handling operations on the warehouse floor via hand signals and shouting, which can somewhat be compared to a stock exchange or even a battlefield scene in a movie.

While this may be standard procedure in many companies, there are better ways to handle internal logistics. Transport control systems support the efficient organization of all internal transports: the use of forklifts or route trains as well as the dispatch of transport aids such as trailers or containers.

The transport orders are automatically generated by the systems, inbound and outbound deliveries are organized, parking spaces are managed, and loading and unloading processes are initiated. These systems are oftentimes powered by Artificial Intelligence (AI) and it is safe to say that working with AI will eventually be the new standard in internal logistics.

AI is coming

This technique of simulating human intelligence processes with machines has vast potential and can without a doubt support dispatchers in their work in the future. Intelligent algorithms enable real-time routing and planning with multiple pick-up and delivery locations, order priorities, due dates, load types and vehicle capacities.

AI therefore makes it possible to handle material transports much more efficiently and thus ensure reliable production.

Why?

Case studies have shown that optimization with AI can reduce transport costs by 12 – 20 percent. Other advantages of optimized transport management are:

– Efficient organization of transport orders

– Reduced distances for vehicles, making logistics operations “greener”

– Minimization of empty runs and, in the long term, of the size of the fleet

– On-schedule delivery and consequently satisfied customers

– Easy to monitor fleet performance (online)

– Reduced transport costs

– High transparency

– Less control effort

Thanks to advanced AI algorithms, transport orders can be calculated optimally. In addition, drivers can receive transport orders directly via mobile devices.

But in internal logistics it is certain: AI is coming. Which is a good thing, as it will optimize your internal logistics processes and bring greater certainty to logistics operations.

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