E(asy)-FREIGHTS with blockchain & A.I
There are many advantages of blockchain technology for freight forwarding and logistics operations.
One advantage is the better tracking of orders and assets. Because of the decentralized nature of a blockchain, no single entity is in control of the tracking process, which will increase transparency in the supply chain and ultimately improve consumer trust.
In the area of perishables, for example, blockchain technology can be used to reliably track products from farms to grocery stores, which allows for very precise and quick reports or recalls.
Other benefits range from better scalability of operations to optimized capacity monitoring and pricing, fewer errors in payment processing and auditing, improved compliance, easier identification of attempted fraud, theft prevention, ease of building trust and gaining real-time feedback from customers.
With volumes of data growth and the insights that can be gleaned becoming increasingly varied and granular, these companies are starting to turn to artificial intelligence (AI) computing techniques, like machine learning, deep learning, and natural language processing, to streamline and automate various processes.
These techniques teach computers to parse data in a contextual manner to provide requested information, supply analysis, or trigger an event based on their findings.
They are also uniquely well suited to rapidly analyzing huge data sets and have a wide array of applications in different aspects of supply chain and logistics operations.
- The current interest in and early adoption of AI systems is being driven by several key factors, including increased demands from shippers, recent technological breakthroughs, and significant investments in data visibility by the industry’s largest players.
- AI can deliver enormous benefits to supply chain and logistics operations, including cost reductions through reduced redundancies and risk mitigation, improved forecasting, faster deliveries through more optimized routes, improved customer service, and more.
- Legacy players face many substantial obstacles to deploying and reaping the benefits of AI systems, though, including data accessibility and workforce challenges.
- AI adoption in the logistics industry is strongly skewed toward the biggest players because overcoming these major challenges requires costly investments in updating IT systems and breaking down data silos, as well as hiring expensive teams of data scientists.
- Although AI implementations are unlikely to result in large-scale workforce reductions in the near term, companies still need to develop strategies to address how workers’ roles will change as AI systems automate specific functions.