AI : Building the Seamless and Efficient Supply Chain
When a catch comfort is snapped, many see the race to the base as a rivalry that is both unsustainable and one that no one wins. Transportation stuff comes quickly as a financial cost at both an ecological expense. Data analysis could be used to identify bottlenecks in the supply chain of a company, often leading to higher industry efficiencies. The issue of empty space in shipping vehicles grew in the race to get orders to customers as quickly as possible. This resulted in additional fuel usage, CO2 output, and shipping costs as a whole. Empty truck space was responsible for 16 mileage percent for one U.S. company in 2018 alone.
UPS started to study ways to improve shipping lanes to restrict idling time and save fuel by learning optimal shipping routes to get deliveries there faster. ORION is an algorithm of 1000 pages that can learn shipping routes and use this knowledge to locate inefficiencies and simplify shipping and delivery processes. Using GPS data, driver habits and more, ORION saved 10 million gallons of fuel per year, eliminating 100,000 metric tons of CO2 pollution and saving up to $400 million in shipping costs by the end of 2016.
Check out: Top Supply Chain Management Companies
Future algorithm versions will be able to account for bad weather and other common issues that can halt shipping, costing millions of companies. Such algorithms can identify multiple inefficiencies in shipping systems, ensuring deliveries do not only on time but at reasonable associated costs. It's just the start to save on truck space and optimize shipping routes. AI is used to predict customer orders so the product will only be ordered for an eCommerce business if it is likely to be sold immediately. AI can track supply so that it can prompt a warning to order more when certain products come down to lower levels, removing the human guesswork from inventory control.
In the age of machine intelligence, maintaining the status quo is unlikely to result in a viable business for a long time. It's time for eCommerce to adopt artificial intelligence and cherish the seamless and efficient supply chain; this innovation can nurture the future well.
Check out: Retail Tech Insights