Technology has helped make ecommerce more accessible — from reliable shopping apps to secure payment methods and streamlined logistics.
One of those technologies is artificial intelligence (AI), which is also playing a valuable role in logistics. Integrating AI has transformed how online sellers and their third-party logistics partners improve their services.
These are the ways Ninja Van uses AI technology to offer seamless logistics solutions to business.
Also read: 7 Ways You Can Benefit from a One-Stop Logistics Provider
AI in logistics: How is AI being used in logistics?
AI uses technologies, like algorithms and machine learning, to understand your processes and data. From there, it can optimize your tasks and provide insights into how you can make your operations more efficient.
AI in logistics helps your supply chain by streamlining processes, automating tasks and using your data to provide accurate estimates. Applied well, it can help you reduce operational costs, make better business decisions and improve your customers’ experience with faster and more efficient deliveries.
Benefits of AI in logistics
AI can provide various benefits to your logistical operations depending on which aspect you use it. However, here are some of the general benefits AI can bring to your ecommerce operations:
- Efficiency: AI for logistics streamlines processes, like inventory management and order fulfillment, making some tasks easier and faster to complete.
- Accuracy: AI can analyze your sales history and provide accurate demand forecasting, which is helpful for ordering inventory or scheduling your deliveries.
- Cost reduction: AI programs may be a more cost-effective solution when minimizing inventory storage costs or automating tasks.
- Improved customer service: With AI for logistics streamlining your operations, your order fulfillment is faster and more accurate. This can impact customer satisfaction.
- Scalability: AI systems optimize operations even as your business grows. It helps you analyze large volumes of data and provide assistance when expanding your operations.
Fulfillment
Order fulfillment covers all tasks from storing inventory, collecting products, packaging, labeling and shipping orders. With plenty of repetitive tasks, Ninja Fulfillment uses AI to streamline these processes, handling time-consuming tasks and reducing the risk of wrong order fulfillment.
Many AI programs can be used to ensure correct items are picked for an order. For example, AI software can either identify products visually or through the use of barcodes and other identifiers. The process ensures that the right items are selected for the next step of fulfillment. It can also determine the order weight and dimensions to ensure efficient packaging, smart labeling and optimizing space in shipping containers.
What’s the role of AI?
- Automated picking: Ninja Fulfillment warehouses integrate technology that removes the risk of human error by letting robots collect products for orders. This addresses factors, such as quality control and reduced risk of human error.
- Efficient order processing: When a customer places an order in your store, the AI will automate its processing immediately and start the order fulfillment process. Ninja Fulfillment’s system updates your inventory records in real-time and ensures these are accurate in your tracking system and your online store.
- Streamline processes: From printing labels to automated error checking, AI can reduce the need for manually checking repetitive tasks that can cause disruptions or pauses during order fulfillment.
Inventory management
Ninja Van’s inventory management system helps you keep track of how much of a product you have to sell. Ecommerce sellers who want to expand their business benefits from our warehousing solution to accommodate larger inventory.
AI assists mainly through warehouse automation. Manually taking inventory can be time-consuming, prone to inaccuracies and does not provide real-time insights or demand patterns. AI can also help you determine when your inventory is running low, preventing delays in order fulfillment or managing your inventory if you’re using practices such as just-in-time logistics.
What’s the role of AI?
- Avoid overstocking or understocking: Overstocking results in paying more for storage costs and the risk of lost, unsold or expired products. On the other hand, understocking can lead to shortages, order fulfillment delays and lost opportunities to sell more products. AI can help you find the balance between the two.
- Anticipate demand: Anticipating demand can help you order the right amount of inventory for a certain period. AI programs analyze your sales history and can determine which times tend to see higher sales (such as the holidays and sales).
- Efficient order fulfillment: Once you can accurately predict demand, you can prepare your inventory levels for better sales. Whether you do this on your own or have a third-party logistics company handle order fulfillment, operations that implement AI speeds up order fulfillment and enhances your customers’ experience.
Route optimization
Many ecommerce business owners opt to deliver their products using third-party delivery partners. It’s important to do your research about the quality of your partner’s services. In this case, AI has an edge to ensure efficient deliveries.
Ninja Van uses AI for route optimization. These programs consider factors, such as distance, traffic conditions and delivery schedules. Knowing the address of each package, our AI program can then optimize each delivery driver’s route.
What’s the role of AI?
- Improve delivery times: AI can select the most efficient routes. The tactic reduces the driver’s time stuck in traffic, ensures all packages scheduled for that day are delivered and improves customer experience.
- Reduce fuel consumption: Optimized routes mean fuel economy and efficiency. This can translate to savings from operational costs, which can benefit everyone within the supply chain.
- Avoid delays: Road closures, congestion and other unforeseen factors on the road can cause delivery delays and unhappy customers. AI programs can recommend alternative routes to minimize delays on the road.
Business growth through AI
The role of AI in supply chain management can improve the way businesses operate, including logistics companies. Ecommerce business owners who want to take advantage of the latest tech can either invest in these new opportunities to streamline their business or work with partners that leverage AI technology to operate efficiently.
Ninja Van uses AI technology and innovation to provide you with seamless one-stop logistics solutions — storage and warehousing, inventory management, fulfillment, route optimization and more.
Bring your business into the future. Talk to our logistics experts today!
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