Posts Tagged “AI”
By Josh Rivera, ALC St. Louis
Everyday, we hear more and more about how AI is being implemented in all sorts of industries across the globe. There is a need to automate certain processes in all aspects of business to increase efficiency, especially in the logistics industry. Though we are in the early stages of adopting AI and learning where it can provide the most benefit, we are already seeing some of this technology in warehouse automation and robotics and the early stages of driverless vehicles. AI can assist in data collection and analytics to provide real-time information.
In Bart De Muynck’ Forbes article The True Role of AI in Logistics, he states, “AI is being used to improve data quality, generate data through Generative AI when real data is not available and provide valuable insights through predictions (like an ETA or dwell times) or forecasts (available capacity of assets or at ports). By implementing real-time visibility, companies can share information, updates, and forecasts with suppliers, customers, and partners.” We know AI can offer much but, just like everything else, it’s not perfect. Transportation is and will remain a human central function, but paired with AI technology can propel the industry forward. The key is for companies to stop looking in the past, and use this information to help predict and adjust for the future.
Even in the early stages, AI is demonstrating its value in the logistics industry. As time progresses, its capabilities will only improve. It’s only a matter of time before we witness its widespread adoption. AI’s limitless potential is a compelling prospect for every industry, including logistics, in managing and optimizing their supply chains.
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Josh Rivera studied at Western Illinois University where he received a BA in Marketing. Josh has been working in the ALC St. Louis office for six years as a transportation broker. Out of the office, he is a musician who enjoys playing the drums and ukulele. He has two dogs, Bella and Louie, who love to play and keep him busy.
josh.rivera@allenlund.com
By Jon Manning, ALC Cincinnati
Creighton Abrams once said, “When eating an elephant, take one bite at a time.” AI is that elephant in the logistics space that everyone seems to be talking about. Let’s not kid ourselves here, we humans love the opportunity to have something within our grasp, that ultimately will make our lives less laborious, and can provide boundless information whenever and wherever we need it. Within the past week, I would have loved to have had something tell me how to make a beef Wellington from scratch or provide me with college football picks. That time will come, I’m sure, but even before the time comes the conversation about policy and ethics of AI will certainly be debated in many forums.
Ultimately, the idea is that AI can and will eventually surpass a team of people in breadth and scope of work, in mere seconds, it will become the new standard. I opened ChatGPT recently and typed in, “How will AI help supply chains?” The answer was shocking. In a matter of seconds, it gave me a plethora of ways that AI could be beneficial, such as demand forecasting, inventory management, predictive maintenance, blockchain for transparency, and risk management. For those thought-provoking scholars, that means AI can carve vast efficiencies in any supply chain. In a recent article from Nasdaq, “AI is being used worldwide to improve production times and boost safety in manufacturing plants in what is referred to as the ‘Industry 4.0’ era.” Will the human element still be applicable? The short answer is yes. While AI is revolutionizing the supply chain by optimizing processes, predicting demand, and enhancing efficiency, it will never replace the invaluable human connection, compassion and sensible foresight that supports the industry.
So, where would I guess the logistics industry to be in 5 to 10 years from now? Perhaps we’ll see a litany of providers offering up to customers a comprehensive “AI” program to help manage their supply chain stem to stern, or, most likely, staying the course and navigating the nuances of logistics using the best and brightest talent in the industry, which is none other than human capital. This remains essential for fostering collaboration, resolving complex issues, and navigating the unpredictable challenges inherent in the dynamic world of supply chain management. AI may streamline operations, but the industry’s success will always count on the symbiotic relationship between technological innovation and the irreplaceable human element that is required to cultivate and grow businesses.
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Jon Manning is the general manager of the ALC Cincinnati office. He started in the logistics industry working in transportation sales role in 2002. Manning graduated from Bowling Green State University with a B.A.C. degree in Communications.
jon.manning@allenlund.com
By Jake Diana, ALC San Francisco
When it comes to the rapid advancement of AI and automated technology, there are few topics more controversial than autonomous vehicles. Many states are not only utilizing, but actively encouraging the implementation of autonomous trucking technologies. From Elon Musk’s Tesla line featuring autopilot mode to the seemingly endless supply of Waymo driverless vehicles throughout major California cities like San Francisco and Los Angeles, it seems that autonomous transportation is becoming less and less avoidable in today’s society.
For some folks, it is evidence of the state’s willingness to change with the times and adapt in ways that allow for a more streamlined future. For others, autonomous vehicles represent a threat to the economy, potentially taking the livelihoods of thousands of hard-working industry veterans by eliminating the need for truck drivers.
On May 31, 2023, the California State Assembly voted to ban driverless trucks from operating within state lines, mandating the presence of a safety driver within these vehicles. Should this bill (AB 316) pass in the California State Senate, California would fall further behind in terms of implementing autonomous technology into the trucking logistics industry. Jeff Farrah, executive director of the AVIA (Autonomous Vehicle Industry Association), stated directly after that “AB 316 undermines California’s law enforcement and safety officials as they seek to regulate and conduct oversight over life-saving autonomous trucks” in reference to the often utilized argument that the use of self-driving vehicles actually increases road safety and causes a regression in transportation-related deaths. Industry veterans strongly refute this argument, believing that their experience and human characteristics allow for better results.
Fernando Reyes, Teamster Local 350 member, advocated for trucks needing drivers, stating: “…the thought of it barreling down the highway with no driver is a terrifying thought and it isn’t safe…”. He goes on to elaborate further into the safety risks posed by a lack of drivers, saying, “…I know to look out for people texting while driving, potholes in the middle of the road and folks on the side of the highway…”. Clearly, this is a divisive issue featuring some strong points on both sides, yet how does it affect freight brokerage companies?
The answer is that a potential monopoly on trucking due to utilizing autonomous trucks could be just as devastating for brokerages as the carriers themselves. Automated transportation would have a cascading effect on the industry as a whole, as the need for drivers would be eliminated. If there were no drivers involved, there would be no dispatchers. Therefore, shippers would likely come to the conclusion that they would be better served purchasing automated trucks and their accompanying tracking/logistical management systems. Most, if not all, brokerages would be forced to end operation given that much of the moment-to-moment load management would become obsolete as driver error would be eliminated. Rate negotiations would cease, as shippers would own their own fleets in entirety and therefore have no reason to seek outside guidance or management.
However, the need for truck drivers for produce and perishable products is an entirely different conversation. Most of these loads are multi-pick, where a human is needed, so they will probably not see driverless vehicles in the future. As of now, it seems that fully autonomous freight transportation is still decades away from being viable – seemingly in step with the gradual implementation of autonomous technology across all sectors of the world.
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Jake Diana graduated in 2020 from the University of Oregon with a Bachelor of Arts degree in General Social Sciences. Diana joined the ALC San Francisco office in August 2022 as a broker’s assistant, before being promoted to carrier sales representative, and most recently to carrier sales manager. He is a high-energy individual with a passion for competition, teamwork, and tech.
jake.diana@allenlund.com