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3 Trends in Logistics: AI, Automation, and Multichannel

As the effects of the pandemic slowly fade, the needs of the logistics industry are increasing rapidly. As consumption increases, the burden on logistics is growing. The global logistics industry faces the following conditions:
  • 40% of the logistics industry is suffering from inventory shortages and stock-outs
  • 56% are forced to renegotiate with suppliers
  • 68% have tried unsuccessfully to find alternative procurement routes
  • 5% have shut down operations
As a result, the logistics industry is facing six unprecedented challenges
  • Traditional lead times are not working
  • Delays in deliveries have become the norm
  • Freight and delivery rates continue to rise
  • Data management and tracking is becoming more complex
  • Higher compliance demands
  • Increased pressure for quality control and defect management

Logistics DX is essential to address the aforementioned challenges. The logistics industry across various global markets, is continuously developing, adopting the latest technologies.

In this article, we discuss three trends of logistics DX that are being introduced by the global logistics industry.

Communication Business Avenue has been helping some of the world’s largest companies to integrate call center systems and digital communication tools for the past 16 years.

Table of Contents

Why Logistics Dx Is Needed

Logistics DX is the use of digital technologies to transform the supply chain; when slower digital technology is implemented, there is generally greater risk to the company

A Harvard Business Review report analyzes the future of the logistics industry as follows:

The traditional supply chain structure will die out in the next five years. Previous systems will be replaced by modern automated solutions that provide seamless operations.
If we do not promote DX in the logistics industry, we will not be able to meet the market needs of the future. What technologies are companies adopting? There are three trends in logistics DX.
  • Multi-channel support
  • AI
  • Automation
Each of these trends are discussed below:

Multi-Channel Support

Supply chain departments in the logistics industry must respond to inquiries from customers through a variety of channels.
  • Phone
  • Email
  • SMS
  • Chat
Many companies have multi-channel support systems in place to handle all channels.
The key to creating an efficient multi-channel support structure is to consolidate inquiries from all channels into a single inbox.
A common failure of channel support is that information is not shared across channels.
No matter how many channels you handle, make it easy to see at a glance who responded, when they responded, on which channel, and how they responded. The latest inquiry management systems automatically share this kind of information across multiple channels.

AI

Artificial Intelligence (AI) and Machine Learning (ML) are revolutionizing the logistics industry. As the amount of data we handle increases, humans tend to have a harder time analyzing this data for commonalities and patterns. With AI, this is not an issue.

AI analyzes the data aggregated in daily operations and tells us what we need to know to improve work efficiency, provide high-quality service, lower costs, and increase production.
An AI-enabled inquiry management system does three things for you:
  • Inquiry classification
  • Data extraction
  • Display of reply suggestions, knowledge, and similar responses in the past

Automation

Another trend in logistics DX is automation. Automation requires only two things:
  • Identification of time-consuming processes
  • Automation of the process
For example, what tasks can be automated?
Paperwork that used to be done manually
  • Inventory control
  • Production line checks
  • Shipment processing
Back-office tasks can also be automated. Many companies are automating delivery orders, bills of lading, and ocean waybills.
Transportation management can also be automated to increase efficiency: AI tracks trucks and products in transit and identifies potential delays. By analyzing the causes of delays, personnel can increase delivery speed, reduce costs, and optimize routes.

Seven Benefits of Logistics DX

There are seven benefits to implementing technology into your logistics operations.
  1. Optimization of operational efficiency
  2. Reduce costs
  3. Minimize human error
  4. Speed up deliveries
  5. Improves delivery delays
  6. Maximize productivity
  7. Allows performance to be measured in real time
Given the above benefits, it is imperative to allocate budget and human resources for DX.

Final thoughts

The trends in logistics DX are multi-channel support, AI, and automation. These days, this can be achieved with just one inquiry management system.
By pushing logistics DX, you can reduce operational costs and increase revenue. Increased operational efficiency can also improve customer satisfaction and help you to achieve your business goals.
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