Business Insider Intelligence recently published the report on “AI in Supply Chain and Logistics: How AI Will Reshape the Logistics and Transportation Industry”. Among the major Artificial Intelligence (AI) applications, Business Insider highlighted Transmetrics and mentioned the results of the successful project with DPD Bulgaria (Speedy) where the logistics provider managed to reduce their total costs by 7-9 % by implementing NetMetrics, a predictive optimization product for courier, express and parcel companies.
The report discusses the potential and obstacles for the development of AI in the Logistics and Supply Chain. It presents that major logistics providers for a long time relied on analytics and research teams to make sense of the data they generate from their operations. However, with the growing volumes of data, and the insights that can be obtained with increasing granularity, these strategies are becoming outdated.
Therefore companies have started turning to AI computing techniques in order to streamline and automate various processes. The unique abilities of AI systems to identify patterns in massive data sets open up a wide range of potential applications. Improved forecasting and asset utilization, optimized freight and delivery routes are examples of such applications.
Throughout the report, Business Insider states that the current interest in AI solutions is being driven by several key factors, including the increased demands from shippers, recent technological breakthroughs, and significant investments in data visibility by the largest players in supply chain and logistics.
Nevertheless, there are several obstacles keeping the industry players from deploying AI at scale. Finding the right data to train AI systems to deliver actionable insights is a
common challenge for the logistics and companies are struggling to find skilled workforce who can launch AI projects.
Here is what Business Insider stated about Transmetrics solution:
“European parcel courier company Speedy, for example, increased its fleet utilization rate from 72% to 82% by working with Transmetrics, an AI startup that’s developed a predictive algorithm targeted at asset utilization in the logistics space. That has led to a 7-9% reduction in Speedy’s total costs by consolidating shipments and canceling unnecessary hauls.”
“Transmetrics’ algorithm analyzes data from a company’s transportation management solution to forecast — typically with greater than 90% accuracy — its demand and supply for shipments over the coming weeks, according to CEO Asparuh Koev. That allows logistics planners to plot how much total shipping capacity they will need at different locations ahead of time, helping them to maximize capacity by moving more goods with fewer vehicles. While Transmetrics is currently focused on improving fleet utilization for parcel companies delivering e-commerce orders, Koev says the company is also working on improving utilization of fixed assets like shipping containers, and warehouse assets like forklifts.”
Read the full report here (You have to have the BI Intelligence account in order to access it)