AI in Logistics: Use Cases and Promising AI Startups

Logistic Problems That Can Be Solved With AI

With continuous development and flexibility in use, artificial intelligence is a powerful tool for improving logistics workflows.

Whether it is a supply chain of goods or various analytics, artificial intelligence will ensure superior efficiency of any process.

In this article, we will look at several examples of how you can use artificial intelligence in logistics and also take a closer look at well-known companies that have introduced artificial intelligence into their workflows.

Without further ado, let’s begin.

Examples of AI Usage in Logistic

McKinsey recently ran the tally and came up with impressive numbers. Enterprises that effectively implement artificial intelligence in their logistics will expect profit from $1.3 to $2 trillion per year thanks to the optimization and automation of many work processes with artificial intelligence. 

That’s why market giants like Google, Amazon, and many others invest an astonishing amount of money and resources into artificial intelligence. Let’s take a closer look at the most common examples of AI in logistics.

Warehouse Automation

This is the most common use case since AI significantly automates warehouse operations and increases warehouse work efficiency.

For example, AI is great in predicting demand for various goods so they can be transported to regional warehouses that significantly reduce transportation expenses.

Another example of warehouse automation technology is AI-based sorting machines that rearrange, lift, and sort goods to optimize warehouse load and speed up fulfillment due to optimized goods location in the warehouse.

Self-Driving Vehicles

Self-driving vehicles are not a fantasy anymore. For example, Waymo launched its taxi service with autonomous cabs in 2018. The next big step of this company will be the presentation of self-driving trucks.

Self-driving cars bring many benefits in logistics and supply chain due to the absence of human mistakes and the opportunity to optimize routes to choose the fastest one.

However, there’s one nuance imposed by many countries that restrict self-driving cars to drive without a driver. That’s made for security since the driver can control the situation on the road and act appropriately in case of an emergency.

Smart Roads

As cars become smarter, the road must be smart too. For example, Integrated Roadways Company developed a system called Smart Pavement.

This system has established itself as a real lifesaver on the highways. The main idea of this system is that it connects all vehicles on the road to the Internet and provides them with real-time info about traffic jams, car accidents, road conditions, roadworks, and so on. 

Another example is roads built with solar panels and LED lights. These road types can produce electricity with solar panels and inform drivers about changing road conditions with LED lights.

AI use cases in logistics (Part 1)

Robotization

The main idea of robotization is the delegation of monotonous work to robots and replacing employees with robots.

For example, recent researches stated that robots can fulfill around 22% of a lawyer’s job, like reading through contracts and identifying cases.

On top of that, AI lawyers are by 9% more accurate than human lawyers. The overall purpose of robotization is reducing human mistakes utilizing robots under AI control.

The most famous example is the UiPath company that is focused on robotic equipment, and this company is on its rise now. During the last two years, their ARR has grown from $8 million to more than $200 million.

AI Predictions to Make Customer Experience Better

Right demand prediction is an essential part of business success. If demand is high, but the warehouse is low on supplies, this can lead to serious fund losses.

That’s where AI comes for the rescue. Recent researches stated that AI algorithms can make predictions more precisely than human analysts.

Moreover, AI helps to make the customer experience more personalized that grants you their loyalty.

For example, DHL collaborates with Amazon to build a top-tier user experience combining DHL fast delivery and Amazon’s voice assistant Alexa.

Alexa can answer various questions and inform customers about the delivery state and other details.

AI use cases in logistics (Part 2) (1)

Famous Startups Based on AI in Logistic

A lot of exciting and daring ideas are born from startups. Let’s look at the most interesting startups in the logistics industry that provide new development and automation opportunities.

6 River Systems

This company specializes in automated warehouses, and its main achievement is the warehouse robot named Chuck.

This robot can perform routine tasks in the warehouse, such as transporting goods, counting, sorting, packing, and so on. Chuck is wireless and can be easily controlled through the Management System.

6 river systems

Locus Robotics

Locus Robotics is a company that develops autonomous robots, and their main focus is warehouse optimization for the e-commerce industry.

They established the production of warehouse robots named LocusBot. These robots are packed with a touchpad and a convenient user-interface that significantly simplifies and speeds up the fulfillment process.

Locus robotics

Valerann

Valerann is a logistic startup whose main goal is to create over-the-top AI solutions to solve logistic problems and make transportation easier.

Valerann created a smart road system that collects high-resolution data. All these data arrays are stored in the cloud, and thanks to it, AI can predict and track various situations on the road.

Valerann

Optimus Ride

Optimus Ride is the company that’s the main scope is self-driving vehicles.

They stated that their software and algorithms could be implemented in any vehicle, which is a fantastic achievement.

Moreover, their software solutions are suitable for many location types like residential communities, parks, airports, and so on.

Optimus ride

Shippo

This company develops software solutions for various marketplaces, warehouses, and the e-commerce industry.

They strive to create an ultimate solution that’ll provide users with the best delivery option, which leads to a more comfortable and fast shipping process.

They’re already made a few solutions that provide users with a high-customized delivery and constant access to the delivery information.

Shippo

Transmetrics

Transmetrics helps enterprises implement various tech innovations in their workflows like AI, computer optimization, and so on.

Transmetrics provide enterprises with advanced technologies like data cleansing and AI-based demand forecasting that raise up their logistics and work efficiency.

Transmetrics

Convoy

The main scope of this company is AI implementation in trucking.

Their leading development is a mobile app that helps truckers find suitable loads, make fast delivery, and get paid faster.

This lead to a much more efficient workflow and optimized supply chain operations of delivery companies.

Convoy

Wrapping Up

As you can see, AI has great use in logistics, and the number of startups in that field approves it.

We’ve listed only six startups with unique approaches to implementing AI innovations into logistics, and this list can be easily expanded with other astonishing startups.

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