Artificial Intelligence in Transport & Logistics

Artificial Intelligence (AI) is quickly transforming the way businesses operate across the world. The simple AI that we have all used through the form of Google and Apple maps has now transformed into extensive route optimisation. Predictive maintenance anticipates breakdowns, fleet safety can prevent accidents, and demand forecasting can predict when operators need to increase their fleet capacity.

As part of a transport and insurance presentation our director, Eamon O’Connor, highlighted to major transport operators in the Waikato the potential benefits and obstacles that artificial intelligence brings to the transport and logistics sector.

Improved Route Optimisation – AI can analyse large volumes of data simultaneously. AI takes into account traffic conditions, weather, delivery schedules, road works and closures, truck and trailer capacity, and customer requirements. The use of an AI to plan routes can often result in reduced fuel consumption, lower operating costs and increased efficiency.

Predictive Maintenance Scheduling – The analysis of mechanical work and servicing data using AI can predict when vehicles are likely to fail and prevent breakdowns if a vehicle maintenance schedule is followed. AI can create specific maintenance schedules based on routes, servicing history and vehicle loads. With the implementation of predictive maintenance scheduling, operators can expect an extended vehicle life and lower repair and breakdown costs. 

Enhanced Fleet Safety – Telematics providers like EROAD, Teletrac and Navman have already started integrating the use of AI technology into their monitoring to further reduce accidents by monitoring driver behaviour and fatigue.

Tailored Demand Forecasting – Transport and Logistics companies are now using AI to forecast seasonal demand, anticipate freight volume and improve fleet and employee planning. More accurate forecasting powered by AI enables operators to efficiently allocate vehicles, drivers and resources – improving services while keeping costs down.

As good as it all may seem, implementing AI technology is not as easy as it seems. AI must often be accompanied by users or staff that understand how to input data, integrate systems and manage an AI bot simultaneously. Upfront costs can often be expensive when margins are already tight due to high fuel costs and an increased labour market. Finally, the artificial intelligence is only as good as the data. Often, transport operators have been working in the industry for many years and have a wealth of knowledge which has not been recorded. AI can only use what it has been given and sometimes giving AI the correct information can take longer than its worth.

The transport and logistics sector is the backbone of New Zealand’s economy and operators working in the sector deserve every advantage they can get. Implementing AI can significantly improve processes, safety and overall efficiency – New Zealand transport operators are well positioned to benefit from AI-driven innovation. The question is no longer whether AI is going to influence the industry, but how quickly businesses can adapt to the rapidly changing environment.