AI Logistics [How AI is Enhancing Warehouse Management Systems]

The logistics business can be challenging. Every single decision matters, and if even one part of the business lags in efficiency, it impacts the entire operation. Utilizing Artificial Intelligence offers significant benefits, primarily through enhanced efficiency and accuracy. AI systems can analyze vast amounts of data much faster than humans, enabling real-time decision-making that is crucial in logistics. In this blog, we’ll explore the details. 

AI in Logistics and Supply Chain 

So, how is AI being used in logistics? And what makes it so effective in the supply chain industry? There are two key aspects to consider: 

• First, supply chain operations require countless critical decisions. AI is key in making these decisions smarter. Take warehousing as an example: AI helps you identify patterns and important details in the warehouse data you already have. Relying on a modern Warehouse Management System (WMS) with AI functionalities for decision-making leads to more streamlined operations. For example, based on your customers’ order patterns, the WMS can predict when to replenish goods, ensuring availability without overstocking. 

• Second, there are many ways to handle tasks and processes in the warehouse, especially when automation is also utilized. But which approach is the best? AI can advise on the most efficient one. For example, the packing process benefits from AI algorithms that determine the optimal way to ship goods, eliminating the need for guesswork or trial and error. 

Three Benefits of AI for Logistics: Transforming Warehouse Operations for the Better 

The use of artificial intelligence in logistics presents significant advantages, primarily because the algorithms, once properly set up and fine-tuned, evolve alongside your business. So, the more data these systems have, the more refined their operations become. Such adaptive growth benefits every area of your business where AI is applied, meeting your changing needs with precision. Below, we explore three use cases of AI in warehouse operations: 

1. Optimizing Box Sizes 

Traditionally, calculating the size of boxes for shipments has relied on linear formulas, considering only basic measurements. An AI-based WMS can bring a sophisticated algorithm into the process, ensuring each shipment is both cost-effective and efficient. But how is it done? 

With the ability to process and evaluate extensive datasets rapidly, AI finds the optimal packaging solution for each shipment. Apart from the package dimensions, it can take into account the materials used for packing and transportation costs. Avoiding shipping unnecessary air in boxes improves the customer experience, saves costs, and cuts waste, making the entire operation more sustainable. 

2. Streamlining Storage 

While many logistics businesses organize their inventory similarly to retail stores by grouping similar items together, this method isn't always the most resourceful for warehouse management. AI offers a more intelligent approach by organizing items based on their order history and frequency of being ordered together, making popular items more accessible. This adjustment significantly reduces picking times and allows a smarter way of working for your warehouse staff. 

3. Optimizing Pick Routes 

You can also use AI in warehousing to calculate the shortest pick route between the items on the pick list. This could save up to 20-30% of the travel distance, allowing teams to work more efficiently and swiftly. Moreover, the reduced wear and tear on forklifts and lower electricity usage contribute to a more sustainable operation.  

Summary 

 The adoption of artificial intelligence in logistics is growing. According to a recent survey1, top supply chain organizations use AI to optimize processes at a rate more than twice that of their underperforming counterparts. The technology has the potential to transform the warehousing landscape as well. Integrated into a WMS, AI in warehousing enables efficient order fulfillment, real-time decision-making, and data-driven insights, offering not just a solution for today but securing a better future for businesses. 

Considering AI for your warehouse operations?  

Astro WMS® incorporates artificial intelligence to respond to the changing demands of logistics. Integrated AI modules for decision-making and process optimization lead to more streamlined operations. Scalable and adaptable, the system integrates smoothly with automation equipment, offering intelligent and efficient operational solutions. Explore how Astro WMS® enhances your processes with AI.