AI, which emphasizes the equation of machine + human, enables leveraging the organization, operations, and profitability, directly addressing today’s major challenges in the logistics market. Unlike the robotic approach, it is the human—now augmented by AI—who becomes the growth lever for the company. But how does AI manage to leverage the human element?
A decision-making aid tool
Humans tend to make decisions based on cognitive biases and intuitions. Even when relying on data, it may not help them make good choices as the data may be insufficient or simply unavailable.
AI helps counter these human reflexes and addresses the information deficit through the power of analytical data. In the hands of an operator, AI becomes a true decision-making aid.
For example, with the Kardinal solution, real-time optimization recommendations are provided, including an understanding of their impacts.
Example of decision support with the Kardinal solution: optimization recommendations in real time, with a clear understanding of their impact.
However, this decision-making aid cannot function without human expertise, which is where the concept of dialogue comes into play. Reality is always more complex than mathematical models, and humans bring to AI the nuances it needs to balance the data.
Thanks to this back-and-forth between data and human knowledge, AI allows its user to:
- Understand the impact of their decisions,
- Have a more comprehensive view of the context,
- Quickly address unforeseen events, thereby being more agile.
Consider a depot manager who faces new constraints daily, such as:
- A driver’s absence,
- A broken package,
- A package that does not fit in a truck because it was supposed to weigh 5 kg, not 50 kg (the classic case of a client forgetting to add a zero to pay less…),
- A customer who no longer wants to be delivered by a certain driver due to a dispute the previous week…
This depot manager must analyze and react to all these events quickly, balancing service quality with productivity constraints. This becomes even more complex with the explosion of B2C volumes and the uncertainty factor.
AI helps untangle this puzzle by modeling all constraints and finding the most suitable solution for the current situation. However, the depot manager also guides the machine, providing last-minute information and field knowledge.
AI augments humans as much as humans augment AI. This equation will boost business growth.
AI to address the shortage of specialized labor
Recently, an operations director told Kardinal that the most important person in a delivery depot is the depot manager. A depot manager handles the route planning, manages drivers, controls truck loading, organizes the docks, etc. In other words, they contribute to the optimization and smooth running of the routes. Their role is central. Today, finding a senior depot manager is a challenge!
Previously, expertise relied on individuals. Today, we can no longer depend as much on human knowledge due to turnover and lack of specialization. Therefore, an organization must be rethought, relying on both people and technology.
Imagine a junior depot manager facing numerous unforeseen events. To assist, we equip them with a solution that aids in optimizing their routes. AI automatically provides information and performs complex calculations to help them make the best decision. It accompanies them in the field and helps them train, offering an analytical distance. It bridges their expertise gap and, over time, leverages what the operational person observes in the field to improve its algorithm.
Streamlining operations and organization
An operator is never alone in the field; they are part of an organization, an ensemble of individuals interacting with them and each other. In the transportation and logistics sector, this organization is stratified. As seen earlier, it lacks fluidity and operational efficiency.
Implementing AI in a delivery depot modifies its organization, introducing more fluidity in communication. Imagine an organization with an information system at its center that considers all interactions and possible unforeseen events (traffic jams downtown, an accident involving a truck, etc.) in real-time. These pieces of information are then shared with relevant actors, enabling them to react quickly. High-level decisions thus reach the field very rapidly, which was challenging with the old organization!
AI ensures continuity in operations management and better communication among all stakeholders. It is a true asset at a time when B2C requires agility, flexibility, and strong adaptability to daily uncertainties. AI should be viewed as a cushion absorbing all shocks, such as the e-commerce boom, unstable situations, and the massification and instability of delivered volumes.
In conclusion, the integration of AI into the logistics industry is not merely a technological upgrade but a transformative strategy that addresses critical market challenges. By leveraging the combined strengths of machine and human intelligence, AI enhances decision-making, improves operational efficiency, and mitigates the impacts of labor shortages. The dynamic interaction between AI and human expertise allows for more agile and informed responses to the complexities of logistics operations. As the logistics market continues to evolve, embracing AI will be crucial for companies aiming to maintain competitive advantage, ensure sustainability, and drive growth. The successful deployment of AI hinges on strategic implementation, strong leadership, and a collaborative approach, ultimately fostering a more resilient and responsive logistics infrastructure.
In this article, we have understood the potential benefits that AI-based technologies can bring to the logistics industry; in the next article, we will explore how to effectively deploy these technologies in real-world scenarios.