Use Cases of Artificial Intelligence in Last Mile Delivery/ Logistics

Last mile delivery refers to a product’s journey from the warehouse to the doorstep of the customer. Consumer demands are rising every day and some of them expect their products to be delivered in a very short span of time, many e-commerce websites even promise one-day deliveries. Fulfilling such challenging demands is a problem for the logistic industry, thus, making deliveries more efficient and less time taking while simultaneously reducing the cost is something that these companies want. Implementing AI solutions can be a great option in this case.

Here are some use cases of AI in Last Mile Delivery/ Logistics:

· Delivery Route Optimization — For any company to effectively meet rising customer expectations, the most efficient delivery route is essential. AI provides specific delivery routes that give the shortest distance possible hence reducing time wastage and enhancing delivery efficiency.

· Smart Roads — Several enterprises are creating smart roads to efficiently deliver packages. Such smart roads can generate electricity or use colourful light to make the drivers aware about the road conditions. Solar panels can prevent the roads from being slippery in winter. These roads can even get connected to mobile phones via the internet and hence can provide drivers with real-life information on road jams, accidents, etc.

· Demand Prediction — Success for any organization is related to how much demand it can create for its product or services and how well it is able to fulfil those demands. Therefore, it becomes extremely important to keep a check on the current trends in the market and predict the number of supplies and goods needed in the near future. Running short of inventory would mean lost sales, lost revenue, and often lost customers. AI can improve accuracy in demand prediction, which will help both the manufacturer and customer in many ways.

· Efficient Asset Utilization — Improved packing, batching and delivery with help of AI, enables a company to efficiently utilize its resources. This reduces delivery time and saves the company a lot of money.

· Automated Warehouse — AI can help improve the warehouse operations such as data collection, inventory management etc. Warehouse robots could be used to help humans in picking, sorting, transporting, and stowing packages. Defect detectors and maintenance predictors can help in identifying defects at early stages and reduce the defects further.

· Autonomous Vehicles — To meet high customer demands for fast and free delivery, automating the delivery process could be very helpful. AI is making autonomous vehicles safer by being able to navigate complex scenarios and traffic. The use of automated vehicles in the logistics industry could save time and money, and even reduce accident rates.

· Delivery Drones — Delivery drones are great to deliver products, they are a great solution for urban areas with heavy traffic congestion. They are also very useful in emergencies when rapid transportation of medical and relief packages to remote areas, is required.

Customer Satisfaction — AI can provide improved customer satisfaction by allowing customers to track their packages throughout the last mile delivery process. Chatbots can provide great assistance to customers by solving their issues and understanding them to enhance their journey.

Contact us if you would like to explore solving any of your logistics industry related issues with Artificial Intelligence.