IBM & DHL: AI to Transform Logistics

IBM & DHL: AI to Transform Logistics

Joint report from industry heavyweights outlines the huge transformative potential of AI in the logistics space

In a joint report, DHL, the world’s leading logistics service provider, and IBM have evaluated the potential of artificial intelligence (AI) in logistics and exposed how it can be best applied to transform the industry.

In the report, the two giants outline how supply chain leaders can take advantage of AI's key benefits and opportunities now that performance, accessibility as well as costs are more favourable than ever before.

While AI is already ubiquitous in the consumer realm, as demonstrated by the rapid growth of voice assistant applications, DHL and IBM find that AI technologies are maturing at great pace, allowing for additional applications for the logistics industry.

These can, for instance, help logistics providers enrich customer experiences through conversational engagement and even deliver articles before the customer has even ordered them.

“Today’s current technology, business, and societal conditions favour a paradigm shift to proactive and predictive logistics operations more than any previous time in history,” said Matthias Heutger, Senior Vice President and Global Head of Innovation DHL.

“As the technological progress in the field of AI is proceeding at great pace, we see it as our duty to explore, together with our customers and employees, how AI will shape the logistics industry’s future.”

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Many industries have already successfully adopted AI into their everyday business, such as the engineering and manufacturing industry.

AI is being used in production lines to help streamline production and maintenance through image recognition and conversational interfaces.

In the automotive industry, AI is being extensively called upon to enhance the self-learning capabilities of autonomous vehicles.

“Technology is changing the logistics industry’s traditional value chains, and ecosystems are reshaping enterprises, industries and economies,” said Keith Dierkx, IBM Global Industry Leader for Freight, Logistics, and Rail.

“By leveraging AI into core processes, companies can invest more in strategic growth imperatives to modernize or eliminate legacy application systems.

“This can make existing assets and infrastructure more efficient, while providing the workforce with time to enhance their skills and capabilities.”

In the report, DHL and IBM conclude that AI will develop to become as omnipresent in the industrial sector as it currently is in the consumer world.

Read the full report: Artificial Intelligence in Logistics

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