Evolution of supply chain with the advent of SaaS

Now that everything is being digitalised, there is a rapid growth in demand as many consumers are at home than they have been ever before and buy products or services according to their convenience. The only thing that has not changed here is the method of transportation i.e. roadways, railways, airways which is very inconvenient and time consuming. To make it hassle free, there was a need of a system that can make it easy and also help maintain a clarity between the suppliers and the businesses. This led the industry to introduction of Artificial Intelligence (AI).

How AI has made the logistics industry more efficient and hassle free

Long trips of delivery came with a ton of paperwork

img-1-icon Digitisation of paperwork and optimisation of routes can be done swiftly and effortlessly with the help of an artificial intelligent system

Transportation includes a lot of paperwork such as lorry receipts, PODs since there are multiple pickup points. For instance, a truck picks up one load from Mumbai, then it has to pick another one from Pune, and Nagpur, and deliver it all in Indore. There is involvement of tons of papers like permits, LRs, PODs, and invoices at each pick up and drop point. Now because of this, when the truck is returning to its station, the truck driver has a bunch of receipts which then need to be accounted and tallied for and if there is a damaged or wrong drop off in the process of transportation, it will come in light much later. By the time, the damaged or erroneous drop-off product will either be used or discarded. To avoid any such damaged or erroneous drop-offs and to reduce the paper constrain, AI comes in picture.

The solution to this problem is a Cloud Based AI system that stores and securely saves these documents in a digital vault or on an ERP Bridge. The truck driver on receiving a POD can upload it on the cloud system which can then be checked by the operator on the other end in real time and immediately verify whether the pickup or drop-off is accurate or not, thereby reducing the chances of wrongdoings and even if there is a wring delivery or pick up, the driver is instantly informed.

How has Artificial Intelligence helped in the rise of One Day Delivery/ Last Mile Delivery

img-1-icon Efforts put in behind the curtains with the help of artificial intelligence reflect in the quality of last mile delivery service provided

In today’s time, we are well aware of last mile delivery, better known as the one day delivery, which is provided by numerous e-commerce companies but what is seldom known to any is how this is made achievable. This is due to the AI systems that can administer time, cost, availability of fleet and its prompt allotment. In addition to this, the AI also assesses the driver performance and lets you know when and which driver has completed his consignment in how much duration and when he should ideally be available for another one, eliminating the risk of accidents that are caused due to over exertion by the driver. It also calculates the time that will be taken to pick up or deliver a consignment using the GPS or Map system. If a driver has done Efforts put in behind the curtains with the help of artificial intelligence reflect in the quality of last mile delivery service provided the route before then it takes into consideration that data as well. It also examines if there are any roadblocks or accidents or other corresponding obstacles and provides you with a suitable time. Furthermore, the artificial intelligent system calculates the costs that will be incurred too to help you manage your expenses accordingly. The software also goes through the previous data available to check if the route of pick up and delivery is the same, and then produces a cost effective and optimal route for the consignment.

Avoiding Delays Due to Unforeseen Situations

India has the second largest road network in the world with a staggering total of 5897671 km worth of roadways. Sometimes it becomes difficult to keep physical track of the fleet of trucks and there may arise some unforeseen conditions during the transit which can prove to be dangerous for the consignment and/or driver that can directly and/or indirectly incur losses to the company. There might be some road blockages that will add to the time of the pickup/delivery which can led to losses financially as well as questions the credibility of the supplier. To steer clear from such problems, the AI uses GPS tracking which all the parties involved can track in real time.

img-1-icon With features like live tracking and updates, it is now possible to find a way around circumstances that consume amount of time and money unaccounted for

Fleet management is an important part of logistics business, and it is very important to have a constant communication with the drivers. This is enabled by the features provided by the AI; one can investigate his phone and know where truck or fleet has reached. One can also reroute any vehicles in the fleet or to assign any new pick up on the same route. The app has a feature that notifies the drivers if they are headed in the wrong way or any misconduct on duty.

In case a vehicle carrying a very important consignment is stolen, it will cause a massive loss of credibility of the company. So to minimise such larcenies, AI provides GPS tracking which sends alerts in such cases and guides what actions need to be taken against such perpetrators.

Resource Handling a Major Aspect/Factor

img-1-icon With the inculcation of an adequate AI system, managing complicated yet crucial aspects seamlessly in the logistics and supply chain sector feels nothing less than a child’s play

The fuel prices can fluctuate dramatically in a day. And in the logistics industry, especially where the transportation takes place via road, it’s very important to analyse the fuel costs as it is one of the crucial stakeholders of the consignment. The AI predicts the most efficient route avoiding any barriers using GPS systems, hence supplying with the most efficient and appropriate price.

The factor of efficiency also depends upon the vehicle’s performance. When a vehicle is in its best condition, it becomes very effective in fuel consumption. AI gives prior notification if there is a vehicle in the fleet whose maintenance is due; it will immediately notify the operators, thereby preventing any delays in the delivery by avoiding any breakdown during the transit.

The reliability of a driver is paramount in the logistics business, so his performance and skills are the key to the proficient working of the With the inculcation of an adequate AI system, managing complicated yet crucial aspects seamlessly in the logistics and supply chain sector feels nothing less than a child’s play transportation system. You are now able to assess the driver’s performance and also get an alert for any misconduct when on duty in real time, thereby giving you an upper hand in preventing any mishap.

Before the digitalisation era, there was a huge gap in the system of efficiency which led to wastage of time and high costs were incurred due to this wasted of time. There were so many small flaws like the huge load of paperwork which led to more manpower, which directly incurred an additional amount of time and subsequent cost. Earlier, there was a communication gap between the consigner or consignee and the driver which frequently led to delay in deliveries. Breakdown of the vehicle or any road prone problem only piled up to the huge waste of time and incurring high costs stack. All of these eventually led to a degradation in the customer service which made businesses lose their credibility in the market.

An efficient business is attended when there is proper planning and smooth functioning of the laid out draft. CargoFL can assist to provide you with the finest services in all aspects of the logistics sector. With the widest range of services that have easy-to-use interface and configurable analytics, CargoFL TMS lets you choose which metrics to be measured in real time. Our artificial intelligence driven technological marvel has been also developed in the form of a handy app to improve supply chain visibility.

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