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What Is The Future of Artificial Intelligence In Logistics?

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Human hand holding digital brain with artificial intelligence text

The future of artificial Intelligence is both incredibly exciting and incredibly promising. Much like the logistics world, the world of AI is fast-paced and ever-changing.

In this article, we will discuss today’s applications and the future potential of artificial intelligence in the logistics world and which areas AI is expected to make the most significant contributions to.

Transport and autonomous vehicles

Today’s example of AI in transport and autonomous vehicles

AI already plays a crucial role in the implementation of autonomous vehicles and drones. Primarily to direct these automated vehicles also known as AGVs or AMRS on which paths to take to reach their destination most quickly and efficiently. AI is also used today on a much smaller scale on large vehicles such as driverless trucks.

In the future: a wider variety of transport applications & cost reductions.

In the future, we could see this being applied to larger vehicles such as trucks in a more widespread way reducing costs and cutting down delivery timeframes and increasing overall supply chain efficiency.

This can be especially important to warehousing, to continue the flow of stock to and from destinations with the least delays and at a reduced cost as these vehicles would not require drivers. This would allow warehousing solutions using AI to have a competitive cost and time advantage over their competition.

Risk management and prediction

Today’s example of AI in risk management

AI can analyse historical data, weather conditions, traffic patterns, and other relevant factors to identify potential risks and mitigate them proactively. It can help logistics companies optimise routes, avoid disruptions, and respond swiftly to unexpected events. AI can also create predictions for possible future risk situations such as stockouts.

We see this today in the form of demand forecasts where an AI will analyse the level of stock in a warehouse and the historical sales data to make demand predictions and suggestions on what to stock up on to mitigate the risk of a stockout situation.

In the future: more accurate, and quicker decision-making.

In the future, we can expect to see AI become more accurate with the predictions it makes. As AI gets better at using the data at its disposal the quality of its suggestions may improve dramatically.

Data analysis and pattern recognition are already one of AI’s strongest areas and as such we can expect its ability to learn from that data and make higher-quality decisions and suggestions to improve.

AI chatbots & GPT 3 and the effects on customer satisfaction.

Today’s example of AI in chatbots

Companies are already using AI technology such as Chat GPT 3 for services such as customer support. How this process works is Chat GPT is used as an intermediary between, the time a customer contacts support, to the time a human can address the customer’s concern. In this post by TechTarget, we can see a deeper insight into exactly how this works.

In the future: Improved chatbot customer support

AI such as chatbots may advance to the point where they can address a wider variety of customer service needs. This would reduce the wait time for the customer to resolve their initial issue and save companies time and money investing in a large customer support network.

This is especially useful for larger companies as they may have hundreds of thousands of users or even millions of users. When you consider that 90% of customers in the US use customer support as a metric to decide whether or not to keep doing business with a company, customer support cannot be overlooked and neither can the quality of that support from a business perspective.

Data Analytics and Insights

Today’s example of AI on data analytics

AI algorithms can process the vast amounts of data which is generated by logistics operations and provide actionable insights for decision-making. By analysing data from various sources, including IoT (Internet of Things) devices, sensors, and customer feedback, AI can optimise operations, improve efficiency, and identify areas for improvement.

In the future: AI that can read for context & create data models.

In the future, we can expect to see AI improve the capacity and speed with which AI can analyse data. The main problem today is that AI struggles to read into the data for deeper context. This means that tasks such as cleaning, validating, and creating data models from this data are primarily done by humans. In future, we can expect to see AI branching out into these areas typically done by humans.

Conclusion

In the complex and fast-paced world of logistics, it is critical to adapt, use new technology, and capitalise on AI’s increased efficiency. This strategy ultimately provides logistics companies with a competitive advantage

While AI offers immense potential, there are challenges to address, such as data privacy, ethics, and the need for human oversight. However, with continued advancements, AI is expected to play a pivotal role in shaping the future of logistics, making it more efficient, reliable, and customer centric.

Logistics

New Multimodal Inland Port Association Launched at Transport Forum

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Railway freight train in South Africa

A significant milestone was reached in the South African logistics sector with the recent launch of the Multimodal Inland Port Association (MIPA). This new association was launched during the Transport Forum, an online event on 23 May 2024 attended by over 250 delegates, with a distinguished panel from industry, Transnet and academia. The event marked what many are calling the dawn of a rail renaissance in the country.

MIPA addresses a critical need in South Africa’s logistics landscape, which is increasingly grappling with rising costs and severe congestion. The association aims to act as the unified voice for inland ports across the nation, focusing on promoting, supporting, and advocating for the increased movement of cargo from road to rail.

Warwick Lord, MIPA

“Transporting more cargo by rail has become an imperative, considering the growing cost of logistics in South Africa. It is no longer just a nice-to-have,” says Warwick Lord, MIPA Chairman.

MIPA aims to reform the rail industry through private investment, foster trade activities that meet social objectives, and facilitate the crucial transfer of goods from road to rail. By optimising industrial and logistics activities through efficient multimodalism, logistics costs will be reduced, and efficiency will be improved.

Formed by leading entities in the transportation sector, including the Cato Ridge Inland Port, Tambo Springs Development Company, Portfutures, Autoforce, Mac Group, Cape Town Inland Port, the Cape Winelands Airport, the Musina Intermodal Terminal, RailRunner South Africa, and RailRunner Services, the association is committed to collaborating on best practices, particularly in through private sector participation (PSP). It will work closely with government and state-owned enterprises.

“We aim to create one voice for inland ports, driving workable multimodal solutions that deliver efficiency, cost reduction, and much-needed resilience to the South African supply chain. By doing so, we can mitigate the impact of external shocks and ensure stability in the logistics sector,” says Lord.

MIPA’s strategy to drive more cargo from road to rail includes using innovative multi-nodal technology and improving collaboration with other freight hubs and stakeholders, to optimise each supply chain link from a cost and efficiency perspective.

“Inland ports increase accessibility through long-distance transport corridors, leading to lower distribution costs and improved capacity by consolidating freight volumes,” explains Lord. “These multi-modal terminals can handle large amounts of cargo continuously, allowing sea ports to extend their cargo base, which is crucial given the increasing size of vessels.”

Furthermore, inland ports provide significant dedicated logistics developments, proximity to rail and highways, ample truck parking, and less traffic congestion.

Lord says MIPA is dedicated to facilitating free trade and promoting sustainable practices. The association will support its members in complying with sustainable development goals and the SADC Vision 2050.

Dr Juanita Maree

Dr Juanita Maree, CEO of the South African Association of Freight Forwarders (SAAFF), highlighted the launch of MIPA: “Our logistics network is at a turning point, with more alignment across the country than ever before. By working together, we can achieve significant advancements. It is crucial to continuously foster dialogue, share insights, and raise awareness to build a sustainable supply chain for the future.”

According to Lord, MIPA will aim to expand its membership, encouraging more stakeholders to join and contribute to the conversation.

“The business community plays a vital role in developing and facilitating trade within the logistics and supply chain environment. We will lobby warehousing, transport, and consulting businesses through these channels to join MIPA. We will also seek to include State-Owned Enterprises (SOEs) – as they are significant players nationally and globally – while fostering a close-working environment with the government,” concludes Lord.

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Logistics

Affordable, Reliable & Highly Tailored Overnight Road Services Delivers With Superior reach & in Record Time

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African man near transport trucks

In a world where businesses demand swift and dependable logistics solutions, Seabourne Logistics is leading with its innovative ONR (overnight road service), setting new industry standards, delivering goods punctually and rapidly expanding its reach to cater to a rapidly growing clientele.

Designed to provide quick and efficient deliveries throughout South Africa, reaching destinations typically accessible solely by air, the overnight service gives clients a competitive edge in today’s fast-paced market.

“The success of our overnight road service can be attributed to our dedication to quality, reliability, and cost-effectiveness,” says Garry Harris, Director at Seabourne Logistics ZA. “We understand that our clients’ success depends on their ability to have goods delivered on time and within budget, and we take that responsibility very seriously.”

Transporting goods overnight by road presents numerous benefits. The foremost advantage is its cost-effectiveness, offering potential savings of up to 50% compared to airfreight services. Moreover, it excels in cargo handling, boasting greater space and flexibility than airlines. This facilitates the transportation of hazardous materials and liquids, which may be subject to stricter airborne regulations.

“While road transport does have its limitations, it is considerably more accommodating, permitting the carriage of items like aerosols or lithium batteries that may be restricted on flights. Importantly, our service consistently upholds high quality standards, ensuring minimal disruptions,” continues Harris.

Seabourne have created distribution hubs and fulfillment centres which are strategically positioned across the country to cater to the growing clientèle. Not only has it increased the service’s reach, but also allows for more efficient transportation networks.

The company has invested heavily in the development of this service.  All linehaul vehicles are equipped with long-range tanks and anti-fatigue cameras that are consistently operated by a double crew, whose activities are closely monitored by a 24-hour control room.

Iveco Turbo Daily 50C 70 vehicles with reinforced heavy-duty tow bars and 1.5-ton trailers are operated within their warranty period on the overnight road service – ensuring reliability. The fleet is subjected to bumper-to-bumper service checks every second to third day, depending on the rotation schedule.

The vehicles have dimensions measuring 4500 (length) x 1700 (width) x 1900 (height), with a carrying capacity of 2.5 tons and 16 cubic metres of space. The trailers have dimensions of 3300 (length) x 1600 (width) x 1700 (height) and can carry 1-1.5 tons with 9 cubic metres of available space. To enhance their robustness, the rear sections of the vehicles are equipped with aluminium cladding walls and Marley-type floors, complete with sunken securing points.

“Businesses, driven by price sensitivity and competition in service delivery, are increasingly opting for this intermediate service that ensures next-day delivery,” explains Harris. “It holds great value in industries like the automotive sector, where the quick movement of parts is crucial. It offers convenience and flexibility, allowing for multiple deliveries in a single trip to remote places often left out from next-day delivery. Moreso, we’re constantly working on expanding our service reach and footprint across the country, providing our clients with a cost-effective solution,” concludes Harris.

The growing logistics company moved to a new and improved facility in November, doubling their warehousing space and preparing to further enhance their reach and maintain their excellent personal service.

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Logistics

Laser Cutting Systems in Shipbuilding & Supply Chain impacts

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Shipbuilding with large ship and man

Shipbuilding, a craft as ancient as our love for the sea, is witnessing a heartwarming embrace of old and new. Cargo ships themselves are one of many crucial parts of the supply chain.

We talk a great deal about the freight aspect of maritime shipping however one less studied element is how we can use certain technologies to make the creation of these fleets more efficient and the effects this has on the supply chain.

Enter the laser cutter, a modern marvel making waves in this age-old industry. Let’s dive deep into how this tool, with its humming precision, is becoming the best mate for shipbuilders and how the supply chain benefits from it.

1. Precision Meets Passion

Laser Cutters:

Think of Laser cutting systems as the skilled artist’s brush in a shipbuilder’s hand. Their finesse ensures that ships are crafted not just robustly, but also with an attention to detail that would make any craftsman proud.

Supply Chain Ripples:

Thanks to these machines, there’s less scratching of heads and more nodding in approval. Fewer reorders of materials mean smoother sails from design boards to docks. This also means less cost is wasted on reordering materials and thus a less expensive component of the supply chain is produced.

2. Quick Production Times

Laser Cutters:

These aren’t your granddad’s tools. They fly through sheet metal at great speed, proving that modern tools can keep up with the high seas demands.

Supply Chain Ripples:

Quicker construction of cargo ships means that more assets can be added to the existing supply chain expanding capacity and ensuring the supply chain can keep up with demand.

3. Less Material is Wasted

Laser Cutters:

]They’re the embodiment of ‘waste not, want not’. With their precision, every bit of metal finds its purpose.

Supply Chain Ripples:

Less scrap means not just savings, but also fewer headaches about what to do with leftovers leaving us with a greener production of our ships.

4. Every Piece in Its Place

Laser Cutters:

In shipbuilding, every section is a piece of a grand puzzle. With lasers in the mix, each piece of metal can be precision-cut to fit any section of the ship.

Supply Chain Ripples:

Fewer misfits mean less time wasted going back and fixing the problem. This is music to the ears of everyone, from the shipyard to the suppliers saving time materials and precious resources.

5. Remember These High-Tech Tools Need TLC Too

Laser Cutters:

As sophisticated as they are, they’re a bit like pets. Give them care, and they’ll purr (or, hum) along perfectly.

Supply Chain Ripples:

This means the supply chain needs to have a soft spot for machine maintenance, ensuring parts and services are always on standby to service the machines that improve overall supply chain efficiency.

6. Greener Supply Chain

Laser Cutters:

Beyond their precision, they’re a wink to our green future, less waste and more sustainable practices mean a greener supply chain as these tools begin to see more and more use.

Supply Chain Ripples:

As shipbuilding turns a shade greener, the supply chain is now on the lookout for eco-friendly partners. What this means in effect is that clients and brands who sway to the more eco-friendly side will be more likely to do business with a partner that shows an ecofriendly initiative.

7. Cost Savers

Laser Cutters:

They might ask for a few extra pennies upfront, but the symphony they bring to shipbuilding often makes it worth every cent.

Supply Chain Ripples:

With a vision on the horizon, there’s a gentle nudge for more flexible payment dialogues, keeping an eye on long-term gains.

Conclusion

In a nutshell, the dance between laser cutters and shipbuilding is a sight to behold. A balance of tradition and technology, proves that even in an industry as seasoned as shipbuilding, there’s always room for a new partner.

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