4 Logistical decisions to be made by Artificial Intelligence

Ilustración del concepto de cara de robot. decisiones logísticas que tomará la inteligencia artificial vector

Whether in the digitization of processes or digital transformation, artificial intelligence is increasingly present among companies in any sector. But logistics stands out, as companies today seek to streamline their digital operations and/or change their strategy to meet current industry demands, looking for the best logistics decisions that Artificial Intelligence will make.

There are currently many options and tools with AI on the market that, rather than offering a magic solution to all problems, help in the management of the most complicated processes and assist in making decisions in the face of difficult challenges to solve. Some of them have already been heard a lot about due to their recent use in large companies, but others are not so well known.

The following are the types of logistics decisions that Artificial Intelligence will make in both operations and strategy.

Demand forecasting

It is no mystery to know the most popular peak demand times such as Christmas or Black Friday, when most industries are affected. However, each sector and, in particular, each company knows its own order increases in more or less detail depending on the times and data from previous years, among other aspects.

Despite this, the optimal number of stock is not always right in order not to suffer losses due to excess or broken stock due to its incredible complexity determined by both external and internal factors. That is where AI comes in to plan demand based on algorithms that calculate previous years, marketing campaigns and even taking into account some external circumstances such as changes in laws.

Reverse logistics costs

Reverse logistics is known to be one of the biggest challenges for a company running a supply chain. This is because the cost of a return is much higher than that of a shipment because it is not only a matter of bringing the product back to the warehouse. It is not only a matter of bringing the product back to the warehouse, but also a rigorous administrative management to reintroduce it to the active stock, repair it if necessary, or destroy it if the previous steps cannot be applied.

At this point is when Artificial Intelligence comes in to make decisions based on several criteria, but whose main objective is to assess whether to process the return of the order or not. To do this, the AI takes into account such obvious factors as the cost of the refund, but also other not so obvious ones such as the condition of the product to consider its resale and even the buyer's history to analyze his behavior with the brand.

Once these facts have been analyzed, the AI can make two decisions: either not to process the return, but to pay the customer if the costs are not profitable, or to process it when the losses are not so serious for the company's economy. Not forgetting that the dissatisfied consumer is also analyzed in terms of his brand loyalty and whether he will be penalized for processing too many returns.

Hombre usando un asistente digital en su tableta. decisiones logísticas que tomará la inteligencia artificial

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Route planner and Google Maps

planificador-de-rutas-y-google-maps-Foto-de-Personas-creado-por-lookstudio-freepik

Normalmente se cree que, para tener un planificador de rutas eficiente, se necesita un programa informático de alto presupuesto. Sin embargo, puedes tener la solución aquí mismo, en tu smartphone u ordenador. Basta con abrir Google e ir a su apartado Maps.

We are talking specifically about its route planner function and, relatively recently, adding stops to that path. It's not exactly new because it was created in 2016, but it can be of great use for delivery routes.

Tips for using the route planner

If you want to know how to get the most out of this familiar route planner, here are the tips that may be useful:

1. Set departure time or arrival time.

Most users who open the application create their route based on the actual time. However, Google Maps also gives us the option to change the date of departure or arrival, giving us room to start planning and arrive on time.

This proves to be very advantageous to get more information about certain roads and highways on which we may encounter setbacks more frequently. Apart from the fact that all possible routes are known in advance by means of the route planner.

2. Use several stops

Not only can routes be created from point A to point B, but it is possible to add multiple stops along the way and optimize in the process.

Although this function is widely used by tourists who want to make a customized tour, it is also very useful for transport and logistics. In this way, additional drop-off and pick-up stops can be added to generate the best delivery route.

3. Consult regular or real time traffic

Once the route is prepared, additional information may appear that can be very helpful. The traffic consultation on the routes may be one of the most useful tools of this application.

The traffic level is colored from green (very little traffic) to dark red (a lot of traffic) to better interpret the main routes and other alternatives.

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What software is used in logistics?

What software is used in logistics?

Logistics software are all those digital solutions that allow you to manage, control and optimize the different logistics processes from both a strategic and daily operational point of view. In order to be prepared for today's needs, it is important to know what software is used in logistics nowadays.

Logistics is complex as it integrates a multitude of activities with many actors involved. Likewise, logistics has a great connection with the rest of the company's activities and, therefore, is affected to a great extent by decisions and situations derived from other factors that are not properly logistical, such as sudden changes in demand, new products launch or expansion to new territories, among many other examples.

The digitization is currently a key aspect for the future of companies of all sizes. However, the complexity of logistics mentioned above is also visible in the variety of types of software for logistics, or that have a direct relationship with it, for example systems for supply chain management or company management (ERP).

Logistics software

In addition, each type of software also has notable differences from others that are in exactly the same category. Therefore, it is necessary to go beyond the category and see the functionalities that each system offers to know exactly whether or not it adjusts to the needs of each company.

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