{"id":1528,"date":"2024-08-02T15:20:13","date_gmt":"2024-08-02T20:20:13","guid":{"rendered":"https:\/\/www.ifssac.com\/blog\/?p=1528"},"modified":"2024-08-02T15:22:03","modified_gmt":"2024-08-02T20:22:03","slug":"how-can-ai-be-the-game-changer-for-logistics","status":"publish","type":"post","link":"https:\/\/www.ifssac.com\/blog\/how-can-ai-be-the-game-changer-for-logistics\/","title":{"rendered":"How can AI be the game changer for logistics?"},"content":{"rendered":"\n

A wave of AI innovation is set to transform ports, terminals and warehouses across Asia Pacific, opening new doors to supply chain optimisation for customers.<\/strong><\/p>\n\n\n\n

Anders D\u00f8mmestrup, Executive Vice President for North Asia and Senior Vice President, Operations at DP World<\/a> in Asia Pacific, is convinced that AI will play a crucial role in the future of logistics \u2013 and a wave of innovation is about to drive a step change for customers in Asia Pacific (APAC).<\/p>\n\n\n\n

In the six months since a new AI-powered container-decking tool was rolled out at DP World\u2019s logistics centre in Busan, South Korea, he has seen bottlenecks ease and equipment used more efficiently.<\/p>\n\n\n\n

Related:<\/strong> AI not just hype and will be transformative<\/a><\/p>\n\n\n\n

This allows more accurate decking of containers and a better ability to automate the process of dealing with fluctuating flow of cargo through this key hub for customers. Through improved process automation the team can now be more responsive. And it is a vital step in future-proofing the region as volumes grow.<\/p>\n\n\n\n

\u201cAs trade and logistics volumes expand, it puts pressure on traditional systems. And often those systems don\u2019t have the logic to support that increased complexity,\u201d he says.<\/p>\n\n\n\n

As trade across the Asia Pacific region continues to evolve and grow, AI technology is increasingly being adopted in ports, terminals and warehouses. It is proving itself by optimising the use of equipment, making time savings, providing better forecasting and improving worker safety.<\/p>\n\n\n\n

Ultimately this all combines to help customers optimise their logistics, bringing greater predictability, and allowing them to forecast more accurately.<\/p>\n\n\n\n

And as the applications for its use continue to grow, and systems become more integrated, 2024 is proving to be a tipping point for the use of AI in APAC.<\/p>\n\n\n\n

Finding patterns in data<\/h2>\n\n\n\n

Some of the biggest benefits of the technology come from streamlining decision-making in warehouses, according to Riana Montisano, Vice President, Operations, Logistics, APAC at DP World.<\/p>\n\n\n\n

For example, AI can suggest improvements to warehouse layout, highlighting fast-moving products that need to be given prime warehouse space versus slower-moving products that need to be less accessible and could be moved.<\/p>\n\n\n\n

This greater efficiency means warehouses can be more responsive to customer needs, resulting in cost savings for them down the line.<\/p>\n\n\n\n

\u201cHow we set up the logic determines the success of our warehousing,\u201d Montisano says. \u201cIf the logic isn\u2019t set-up correctly, operations will suffer. More and more warehouse management systems are using system learning that can suggest improvements. So, when we have good data, we will get good advice.\u201d<\/p>\n\n\n\n

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DP World is also linking this systemic learning with its labour management system, meaning that when there are good forecasts about a day \u2013 for example, Black Friday \u2013 then meaningful suggestions will be automatically made about the additional resources needed. In peak periods, this kind of intelligence is crucial to ensuring smooth-running operations and avoiding delays that ripple down the line.<\/p>\n\n\n\n

\u201cAI is fantastic at taking infinite amounts of random data and creating patterns from it,\u201d D\u00f8mmestrup agrees. \u201cWe can use that information to manage the flow through the system, redirect volumes within our yard and smooth out peaks and troughs.\u201d<\/p>\n\n\n\n

At ports and terminals, this could mean reducing the number of unnecessary moves, or shuffling in the yard. At Busan, machinery and equipment is also being used in a more efficient way and there is less \u2018hanging hook\u2019 time \u2013 when the crane is empty waiting for a truck to be available. This translates to quicker, more efficient handling for customers.<\/p>\n\n\n\n

Consistent and reliable<\/h2>\n\n\n\n

In the realm of logistics, greater predictability and consistency is nirvana. And another way AI is contributing towards that is through predictive maintenance. This allows potential issues to be pinpointed before the affected machinery or process goes down \u2013 boosting supply chain resilience, helping to avoid any unexpected delays and improving the efficiency of how cargo is handled.<\/p>\n\n\n\n

Meanwhile, there are also sustainability considerations from this greater predictability and efficiency \u2013 a waiting ship releases tonnes more greenhouse gases into the atmosphere, for example. Although the delay time may seem insignificant after many weeks at sea, this process, replicated many times over, does have a significant environmental impact.<\/p>\n\n\n\n

Shifting attitudes<\/h2>\n\n\n\n

As AI is increasingly used, attitudes towards it evolve. Montisano says that previously when AI was presented as a solution, there would be concerns about how much it would cost and what the benefits would be. Now, customers are actively seeking automation and it has become a point of differentiation for DP World.<\/p>\n\n\n\n

\u201cAs more and more people request and adopt AI<\/a>, and it is increasingly integrated into systems, we will continue to refine our offering,\u201d Montisano adds. \u201cIt\u2019s a symphony of connected systems \u2013 that\u2019s the trick.\u201d<\/p>\n\n\n\n

Currently, Busan is at the forefront of AI adoption among ports and terminals, but it is clear that AI in shipping and logistics is at a tipping point. The technologies in use at Busan are already being replicated and rolled out in new locations, and they become more powerful the more they are connected and talk to one another.<\/p>\n\n\n\n

Throughout the supply chain, AI adoption is becoming more widespread as the benefits and potential of the technology are increasingly realised.<\/p>\n\n\n\n

\u201cThink of AI like your Excel spreadsheet \u2013 it could do magic, or it could do one plus one equals two. It really depends on how you use it,\u201d Montisano says. \u201cThe question comes back to us \u2013 how can we, as the human, maximise AI? And part of the answer will come from experience through exposure.\u201d<\/p>\n\n\n\n

By working with partners who are actively using AI, customers will rapidly see the benefits \u2013 helping them to achieve an efficient, sustainable and resilient supply chain.<\/p>\n\n\n\n

Source: Seatrade Maritime News<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

A wave of AI innovation is set to transform ports, terminals and warehouses across Asia Pacific, opening new doors to supply chain optimisation for customers. Anders D\u00f8mmestrup, Executive Vice President for North Asia and Senior Vice President, Operations at DP World in Asia Pacific, is convinced that AI will play a crucial role in the […]<\/p>\n","protected":false},"author":1,"featured_media":1532,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[877],"tags":[],"class_list":["post-1528","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-integral-logistic-service"],"_links":{"self":[{"href":"https:\/\/www.ifssac.com\/blog\/wp-json\/wp\/v2\/posts\/1528","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.ifssac.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.ifssac.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.ifssac.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.ifssac.com\/blog\/wp-json\/wp\/v2\/comments?post=1528"}],"version-history":[{"count":2,"href":"https:\/\/www.ifssac.com\/blog\/wp-json\/wp\/v2\/posts\/1528\/revisions"}],"predecessor-version":[{"id":1535,"href":"https:\/\/www.ifssac.com\/blog\/wp-json\/wp\/v2\/posts\/1528\/revisions\/1535"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.ifssac.com\/blog\/wp-json\/wp\/v2\/media\/1532"}],"wp:attachment":[{"href":"https:\/\/www.ifssac.com\/blog\/wp-json\/wp\/v2\/media?parent=1528"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.ifssac.com\/blog\/wp-json\/wp\/v2\/categories?post=1528"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.ifssac.com\/blog\/wp-json\/wp\/v2\/tags?post=1528"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}