The Logistic organization, which is based in Sydney performs their various operations within Australia. They also have their major branches in the region of Oceania. The organization performs their major operations by providing logistic solutions to various companies that includes manufacturing, warehousing and mining. The logistic sector have started their online business processes and they want to expand their sector based on the AI platform. The client companies, which are linked within the logistic sector are expanding and hence are expecting the logistic provider for providing solutions (Porteous, Sebastia & Hoffmann, 2014). The logistic organization has been planning to expand their business base within the next five years as they want to implement AI based technologies within the sector. Hence, the management team of the organization would wish to implement the technologies within their daily operations without affecting the potential growth of the organization.
The report aims towards the identification of the various kinds of applications of the use of AI technologies within the organization. The primary objectives are:
The study of the report helps in focusing on the impact of AI based solutions within the logistic sector and the ways in which they would be able to provide better forms of solutions. The study is also conducted on the top form of developments within the sector and also proposes three solutions that should be implemented within the sector for bringing efficiency within the operation processes.
AI could also be defined as machine intelligence, which is a form of intelligence that could only be demonstrated with the help of machines. The research within the sector of AI could be defined as based on intelligent agents. The AI enabled devices are able to perceive the environment and thus are able to take intelligent actions based on the sensing of the environment. Some of the examples of AI include automation, machine learning, natural language processing, robotics, chatbots and autonomous cars.
As the use of computers are increasing with each passing day, hence the impact of AI is also spearheading in the direction where the use of intelligent machines are able to suffice to the needs of various sectors. Many processes such as the management of supply chain that requires relentless labor and focus in their daily operations would get mostly benefited with the impact of AI. The use of AI would automate the entire process, which would initiate from production till delivery of the end products. In the recent times, many e-commerce companies have implemented the use of AI within the logistics sector for automating the entire process of sorting of products and packing them. They would then be able to sort them and thus deliver them as per the requirements (Ai, Yang & Wang, 2016).
Many of the e-commerce companies have enforced the use of AI within their business operations. This is highly meant for bringing in efficiency within the sector and thus helping in connecting the supplier with the manufacturer. The entire process is referred to as Supply Chain Management (SCM). Logistics is one of the major portion within SCM, which is responsible for the handling of the movement of goods from one place to another. There are many vendors who are responsible for offering supply chain software and logistics, which have inbuilt AI technologies. The businesses of logistics are being highly pushed for innovating the latest form of AI technologies. With the recent changes in the development scenarios, there are various robotic systems and AI enabled machines and tools, which are the major reasons of changing the sector of transportation of goods and thus benefiting the customers (Porteous, Sebastia & Hoffmann, 2014).
Some of the top five developments of AI within the sector of logistics include:
There are various applications of AI, which could be implemented within the logistics sector for the better form of services and thus be able to expand the business. Some of the applications, which could be proposed within the sector includes:
There is also a major problem of the back office staff for keeping the update on the customer information based on real-time. With the help of AI based technologies there would also be a huge form of advantage of keeping the records updated on real-time by continually processing millions of points of data in order to determine the accuracy of contact information. The main disadvantages of implementing AI within the back office operations would mean that there would be a cut in the number of people who would be working within the sector, which would lead to unemployment.
The advantages of predictive logistics within the sector would include that it would lead to predicting the risk management strategies and thus these machines would be able to respond to risks that might get incurred within the system. Another form of functionality provided by predictive technology within logistics is the idea of intelligent route optimization. This function is highly critical for the business within logistics as it would the logistic operators for transporting, picking up and deliver the shipments in an efficient manner. The logistic providers and delivery experts have a vast knowledge regarding the cities. However with the help of AI based technologies, it would be easy to meet the increasing demands of the customers and challenges faced in the recent times.
Ethical Issues: Based on the creation of the prototype, some of the ethical issues are to be highly considered. Transparency within the logistics department is a high social concern, which should be put under major focus.
Legal Issues: With the help of AI based technologies, the organization should be able to meet the legal requirements that are set by the government of each country. The AI based machines should comply according to the legal obligations and should be able to meet the delivery aspects and expectations.
Social Issues: The prototype based on AI implementation should be able to increase the standard of delivery of products. The organization should be able to detect any form of challenges as the failure of mitigating the challenges would cause social based impacts.
Ethical Issues: The ethical concerns should be placed when the AI based machines or softwares would be put in proper place of work within the sector. Automation and AI technology should be kept under proper balance for the safety and protecting the laws of ethics (Shukla Shubhendu & Vijay, 2013).
Legal Issues: The Predictive Analytics should be able to meet the legal requirements of the business of the logistic sectors. The predictive form of shipment of products should comply according to the legal requirements.
Social Issues: The use of autonomous cars and robotic chatbots sometimes can pose severe dangers to the society and hence impact people and the society.
Ethical Issues: Based on the NLP technologies, it could be discussed that the logistic sector should be able to focus on the extraction of critical based information. They RPA bots should be able to input the gathered information within the accounting software. The failure in delivering of the right form of information might lead to ethical based issues. The delivery of products to the customer should be able to meet the ethical concerns.
Legal Issues: The legal based issues that might affect the logistic business should be avoided with the proper forms of tools, which should be based on the legal requirements. The use of chatbots within the system, which depends on NLP technologies should be able to meet the legal requirements of the business. There are always chances of vulnerabilities within the system processes and hence these systems should be designed properly so that they would be able to fulfill the legal requirements.
Social Issues: With the help of assets based on the thinking capabilities, it would be extremely vital for meeting the demands of the customer based on the delivery of products. As the logistic providers primarily work on the shipping of the products to the customers hence they have to enable high form of technologies within their systems, which would be able to satisfy the needs of the customers in order to avoid any kind of social issues.
Conclusion
Based on the above discussion, it could be concluded that with the impact and implementation of AI within the logistics sector, it would be highly useful for improvement and ease of operations within the sector. Human functions would be highly reduced and AI based machines would take up most of the work within the sector. This would enhance the functionalities within the sector and thus improve the experience of the customers. With the impact of AI in the recent technologies it could be concluded that the future perspectives of system automation is highly progressive and has huge scopes of improvement. This would also include the supply chain, distribution and process of ordering based within the e-commerce companies. These technologies would be able to save a considerable amount of time and thus would allow the business owners for working on other kinds of important aspects. Based on the current scenarios, it could be discussed that these logistic businesses should also be able to consider the ethical considerations based on these inventions. The legal and ethical issues that would be faced with the implementation of AI within the sector should also be highly considered and thus these businesses should mitigate them for the benefit of the sector. The use of AI would increase highly in the future years and hence high form of technological changes would also be implemented in the various AI softwares. This would highly improve the quality of services within the logistics sector and thus ensure a rich customer experience.
Based on the above discussion, there could be some form of recommendations within the sector of logistics based on the implementation of AI within the sector.
References
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