You are currently viewing How AI Has Revolutionised The Logistics Industry

How AI Has Revolutionised The Logistics Industry

Artificial Intelligence (AI) has the potential to radically change many aspects of the logistics industry, from reducing operational costs and streamlining warehouse management to effective fleet management and enhancing customer experience.

We discuss a few of the benefits of embracing AI-powered technology in the logistics sector:

Streamline inventory management:

AI technology is capable of analysing large sets of data and providing predictive insights into “supply and demand” (Jacobs, 2022). Logistics managers can then use this information to make data-driven decisions when purchasing new stock to ensure that adequate stock levels are maintained across their inventory (Jacobs, 2022).

Reduce business operational costs:

De (2021) explains that AI-powered tools can reduce operational costs by optimising the “yield, energy, and throughput” in logistics warehouses. AI improves the productivity of warehouse activities by automating warehouse processes and ensuring efficient and timely delivery. Automating these processes and eliminating human errors along the supply chain also introduce notable savings (De, 2021). 

Jacobs (2022) explains that AI provides a “goldmine” of data that, if analysed manually, would slow down production times and waste resources. AI has the ability to take factors such as demand, “product lifecycles” and competitor offerings into account to ensure enhanced and sophisticated planning along the supply chain (Jacobs, 2022). 

A survey performed by McKinsey Global found that 44% of respondents reported a decrease in costs following the implementation of AI tools and 63% of respondents reported an increase in revenue (McKinsey & Company, 2019).

Improved fleet management:

Effective fleet management is vital in the logistics industry as it ensures the movement of products from manufacturers to end-users (De, 2021). AI-enabled tools allow logistics companies to track their vehicles in real-time and provide invaluable insights into the optimal times deliveries should be made and the most efficient routes that should be followed to ensure timely delivery (Jacobs, 2022). Ptashniy (2021) states that AI has the ability to predict when vehicles are in need of maintenance. The AI application factors in “historical data” to predict maintenance and repair patterns (Ptashniy, 2021).

Improved Customer Experience:

According to research by EasySend, 85% of leaders within the logistics industry struggle to “define a differentiated customer experience” (EasySend, 2021). AI-enabled customer service tools can deliver personalised responses to customer queries by analysing the customer’s previous interactions with the company (Integratz, 2022). AI tools can be programmed with all the necessary knowledge to handle any query a customer may have, ensuring  speedy and informed responses (Integratz, 2022).

AI can predict customer trends by analysing demand, product popularity, consumer behaviour, and customer expectations (Integratz, 2022). This data can then be used to make informed decisions about introducing new products and services, maintaining sufficient stock levels of popular products, and anticipating customers’ future needs (Integratz, 2022).


De, S. (2021) How AI can improve efficiency of your supply chain business?, AllRide Apps. AllRide Apps. Available at: 

EasySend. (2021) in The 7 Leading Trends in Digital Transformation in Logistics and Transportation. EasySend, pp. 5. Available at: 

Integratz (2022) 7 ways AI for Customer Service has improved the logistics industry, Integratz. Integratz. Available at: 

Jacobs, T. (2022) Artificial Intelligence (AI) in Supply Chain and Logistics, ThroughPut. ThroughPut Inc. Available at: 

McKinsey & Company (2019) Global AI survey: Ai proves its worth, but few scale impact, McKinsey & Company. McKinsey & Company. Available at:

Ptashniy, A. (2021) 9 benefits of Artificial Intelligence (AI) in the transportation industry and related fields: Integrio systems blog, Integrio Systems. Integrio Systems. Available at: