After becoming a mainstream phenomenon last year, is AI’s dominance in 2024 set to continue?
In our previous blog, we looked at the ways generative AIs like ChatGPT could be applied to transform e-commerce businesses. In this blog post, we take a look at what’s in store for 2024 for AI in logistics and how it could be used to transform e-commerce supply.
Intelligent Inventory Management
With an estimated 205 million daily online shoppers, keeping track of what’s in stock can be tricky. This is where AI can be utilized to make inventory management much simpler. In 2024, AI in logistics will tell brands how much of any given item is in the store, warehouse, or factory, as well as where it is located. Likewise, AI will spot where stock is running low, accurately gauge demand, and ensure the right locations have the correct supply.
This will be crucial, especially in times of emergencies or when consumer demand creates shortages. By making real-time adjustments with lightning speed, AI will guide inventory to where it is most needed and adjust prices to reflect current market conditions.
Things can get a little hectic on the ground from time to time with conditions constantly evolving which makes last-mile logistics quite challenging to plan.
Out of the blue, gigantic shipping vessels can obstruct major worldwide shipping routes, natural disasters can strike, or traffic accidents can cause serious logjams. It is always best to plan for any eventuality when it comes to logistics.
AI in logistics is set to transform last-mile delivery strategies in 2024. Since there is no need to “switch off” the generative AI, it can work tirelessly to monitor conditions in real-time for any possible disruption. Since AIs can process data at speeds far greater than human ability, they can spot nuances and changes much faster. Combined with their enormous computational power, AIs instantly hypothesize millions of solutions to situational developments and select the most advantageous. The AI will then direct drivers on the go, giving them access to optimized delivery routes in minutes.
Alongside efficient inventory & delivery operations, AI in logistics can make delivery processes much more transparent. A comprehensive AI system can show recipients who the driver is whilst ensuring that businesses can continuously monitor progress to provide real-time delivery updates to their customers. Improved transparency has been shown to improve relationships between a business and its customers and inspire customer brand loyalty.
Generative AI’s computational prowess makes it a whizz at data processing. AI can collect data from scores of data points and turn them into powerful reports. By tracking things such as driver efficiency, where orders go, and other key metrics, applying AI in logistics will influence business decisions such as where to invest in new warehouse locations to improve delivery speeds and accuracy.
AI in logistics will also influence pricing strategies by empowering businesses to understand their expenses and future costs. AI’s capacity to quickly understand the big picture and generate actionable insights that will drive process decisions forward means that it can and will play a critical role in many businesses’ strategic planning.
In a world where businesses and customers value accuracy, speed, and reliability, deploying AI in logistics can be extremely advantageous. AI not only optimizes supply chain & operational efficiency, it can provide value-adding and personalized customer experiences that can help a business differentiate itself from its competitors.
As digital transformations gather pace, the potential of generative AI will only continue to be explored in 2024 and its adoption will only accelerate from here on out.
If you’re an e-commerce brand that is looking for an intelligent logistics solution, then you should ship with Floship. Floship’s intelligent logistics software has accelerated the growth of thousands of e-commerce brands around the world. Get in touch by tapping the link below.