Artificial Intelligence Accelerating Logistics

New technologies, such as artificial intelligence (AI), big data, the internet of things, mobile apps, cobots and blockchain, are betting on exceeding the expectations of increasingly digital customers. 

The logistics sector in Mexico is continuously modernizing to face global challenges, optimize its performance, maximize efficiency, reduce costs and give greater impetus to the competitiveness of our economy.

In this sense, disruptive technologies are fundamental for Mexican logistics, as they offer real benefits for the supply chain, in addition to providing robust solutions to the demands of a competitive and digital market.

In this way, artificial intelligence is bursting into areas like transportation, where specialists say that process automation and autonomous driving will significantly reduce operating costs, in addition to shortening transportation times. 

E-commerce, an area that was experiencing constant growth and after the pandemic accelerated its impact on manufacturing and logistics management, also demands the implementation of effective technological tools. 

Data from the Mexican Internet Association (AMIPCI) shows that the growth rate of e-commerce operations ranges between 30% and 40%; consumers who purchase goods online expect their products to be delivered immediately to their doorstep and at this point, innovative solutions become very important.

Through data analysis, it is possible to increase deliveries in areas with higher demand. With the help of AI, businesses can make intelligent decisions to optimize processes within their logistics or within their operation, or even save budget, since it is possible to trace with greater precision new shipping routes, so fleets will have the ability to decide a route and automatically designate shipments for each and every one of their customers who placed orders.

In addition, accurate routing has a positive impact on the environment, with better fleet management that reduces polluting emissions by up to 30% and contributes significantly to improving mobility in large cities. 

Mexican companies are taking full advantage of this attractive tool that generates multiple benefits, such as real-time information on their supply chain operations; accurate forecasting of demand patterns; optimized inventory levels; better customer service; high-level strategy analysis and optimized financial reporting; and improved security and risk management. 

However, not all processes are good candidates for automation. Any task with many variations or that involves extensive knowledge is an area of opportunity to eliminate repetitive jobs that do not require creativity or advanced knowledge.

As part of the Fourth Industrial Revolution, artificial intelligence allows us to move from fiction to reality. Today, a robot can execute a process in the same way a human would be trained, making the movements to be executed so that its operating system recognizes and saves them for repetition, allowing humans to concentrate on higher value tasks.

In inventory management, this technology helps us to predict demand and timely restock products or reduce the production of goods that the market is not consuming. This brings considerable improvements in terms of costs associated with warehousing and improves the delivery process.

In the same way that the internet and mobile technology transformed the way we live and work, AI today allows us to automate routine tasks and improve efficiency. In the short term, we will witness the emergence of more advanced applications in the logistics industry that will help us achieve competitiveness.

Logistics professionals must begin to identify their weaknesses and challenges in their operations in order to see how AI could help their company become more resilient and capable of overcoming obstacles. Although resistance to change may arise, due to the costs involved and the time required to modify processes, adopting technologies in a timely manner is a priority. 

PwC foresees an all-out battle in which the companies that best adapt to technological innovations, demonstrate the greatest capacity to diversify and differentiate their services, and those that have the best prepared associates to take advantage of technological changes will survive.

There is no doubt that this year will be decisive for the logistics industry, which will undergo major transformations. Services in this area will become increasingly qualitative and specific; customers expect a tailored suit. At ONEST Logistics, we have prepared ourselves to face the challenges ahead and anticipate where we are going, aware of the need to have updated data in real time to make strategic decisions. 

We are a 3PL logistics operator, 100% Mexican, and passionate about our customers and our people, recognized for our total flexibility, extensive logistics knowledge, innovation capacity and high-quality processes that make us the best option in integrated logistics services in Mexico.

Years of experience have taught us that quality and efficiency come first, which has led us to unite each of them in order to always give all our clients the best strategy and alternative. 

In a globalized world, the adoption of artificial intelligence is not an alternative for companies; from simple processes to complex operations, it has become a tool to minimize risks and anticipate the future with certainty.