How AI is Changing Logistics and Warehousing

Posted by MHO Networks on Apr 18, 2023 9:15:00 AM

How AI is Changing Logistics and Warehousing-1Artificial intelligence (AI) is revolutionizing many industries and logistics is at the forefront. The old, traditional style warehouse has been transformed into a smarter, faster, and more efficient ecosystem that utilizes advanced technology to automate operations. The differing technologies work together to increase accuracy and speed while reducing costs. 

One authority sees the future of logistics and warehousing as “automated micro centers” that “could provide better service and better quality products…” These new smart warehouses “would require minimal infrastructure and only a modest workforce, if any, to operate.” 

What is Artificial Intelligence? 

Artificial intelligence is the simulation of human intelligence processes by machines, especially computer systems.” In short, AI enables machines to mimic (and replace) human capabilities. 

AI works by replicating three human cognitive skills: learning, reasoning, and self-correction. First, the system ingests huge amounts of data and sifts through it to determine patterns and correlations (learning). Then, the AI system uses this analyzed data to make predictions about future states (reasoning). Finally, the system continually fine-tunes its own algorithms to ensure the most accurate results (self-correction). 

The Importance of AI to Warehousing and Logistics

Many companies admit to struggles with adopting AI and using it effectively, but those that do are impressed with the difference it makes. Statistics do not tell the whole story, but they tell a story. These numbers show the importance of AI to warehousing and logistics, and how more knowledge is needed for its optimal use. 

  • Only 12% of businesses were using AI technology in their warehouses in 2020, but this is expected to jump by 60% over the next six years.
  • Over 50% of the logistics companies worldwide had begun digital transformation initiatives in 2021, with many more planning to adopt AI solutions within two years.
  • 61% of employees acknowledge that AI technology increases productivity. The most popular AI solution is the use of robots for material handling, including picking, packing, and transporting loads within the warehouse, handling repetitive tasks, and maintaining the same speed and quality of operations. 

Ken Ramoutar, chief marketing officer at Lucas Systems, said, “DCs (distribution centers) are target-rich environments for using AI to optimize performance. When applied in the right places, AI is a distribution center game changer. AI can drive significant operational and customer experience gains.”

And yet, in a study commissioned by Lucas Systems, nearly 90% of respondents admitted to needing more expertise and information when it comes to implementation and use of AI.

What Aspects of AI Will Continue to Transform Warehousing?

In one article in Supply Chain Drive about warehousing and AI, the author claimed that “AI is a natural fit for the distribution center.” It identified five major areas where AI will excel in a warehouse environment and even transform logistics and warehousing as we know it. These include: 

  • Dynamic slotting
  • Workforce planning
  • Performance management
  • In-warehouse travel optimization
  • Automation - Robots and Humans

Of course, these advanced technologies increase the need for reliable uptime and localized communication of Internet and networking solutions. 

Dedicated Wireless Internet & Networking for Logistics and Warehousing AI

Dedicated wireless can be the key to implementing AI solutions and maximizing their potential. With MHO best of class dedicated wireless solutions, you can enjoy fast, secure, and reliable business Internet and network connectivity to keep even the latest and most advanced AI software and operations moving at the speed of business. 

MHO’s Enterprise Solution engineers each connection to your company’s network for true enterprise-grade connectivity. MHO Managed Link monitors your custom private network that uses millimeter wave radio technology to help keep downtime to a minimum. 

MHO offers solutions that are easy to set up and able to scale with growing needs. 

  • FCC licensed connections
  • 99.99% SLA uptime guarantee 
  • Installation within 10 business days
  • Customizable for your business needs 
  • Best in class 24/7 monitoring and support 
  • 4-hour repair guarantee 

Contact MHO today to check for availability in your area of logistics and warehousing operations. 

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Topics: Warehousing, Logistics, AI

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