Can you imagine a world where freight delays are a thing of the past?

Traditional freight forwarding relies heavily on manual processes and human decision-making, and this comes hand in hand with potential issues like subjectivity, errors, and limited real-time data analysis. 

Fast forward to now, the AI era, where we’re using technology to enhance many aspects of our lives. Understanding how AI is revolutionising the freight industry and improving its efficiency means you can ready yourself for the freight of the future.

Traditional Freight Operations

Historically, freight management has always been reliant on labour-intensive, manual tasks. 

Pen and paper stuff.

A client needing to transport goods from A to B will look for a carrier to make the physical shipment or work with a freight forwarder who will help organise the various logistical elements of the process. 

For the cargo to be delivered, parties involved will need to perform manual tasks such as;

• Planning the route. Forwarders advise clients on the best and most cost-effective route and carrier combination to transport their goods based on experience and intuition.
• Processing paperwork. Shippers or forwarders must ensure customs paperwork and any other necessary documentation, such as licenses and certificates, are filled out clearly and correctly.
• Scheduling and dispatching vehicles using online platforms and telephone calls.
• Tracking shipments. Providing visibility of shipments via manual tracking gives limited information to shippers and is highly labour-intensive. 

There are plenty of challenges associated with the traditional way of managing freight.

The biggest problems? Let’s take a look…

Human Error

Human error and subjectivity in decision-making, come top of the list of conventional freight management issues. 

Lack Of Control

Conventional forwarding processes don’t provide much control at all for the forwarder, or the client, once the consignment leaves its destination. With a lack of real-time data insights, and no eyes on the cargo throughout the journey, reaction times are slow. This means communication falters, customers are left confused and disappointed and reputations can be at risk.

Slow Processes

The way it’s always been done is extremely slow. From obtaining a quote to paying and sorting documentation out, manual freight management runs at a snail’s pace compared to digitally assisted forwarding. 

So Much Paperwork

Keeping track of all of the necessary documentation that’s needed across a shipment’s journey is time-consuming, not to mention ensuring they are all completed correctly. And without it, your shipment may be delayed or refused.

Too Many Cooks

Multiple intermediaries are needed for conventional freight forwarding, and that not only means spending more, but it can also negatively affect communication and messages can get muddled.

The AI Revolution In Freight Operations

You might be wondering what, exactly, AI can do for freight and logistics. If you’re a forwarder, how will it improve the service you’re able to offer? If you’re a shipper, what impact will you see?

Here’s a look at what AI has to offer the freight world.

Optimising Routes And Scheduling

AI algorithms can analyse vast amounts of data to create optimal transportation routes that consider factors like traffic, weather and fuel efficiency.

In essence, this means your goods will get to their destination quicker. But not just that. They will also be at less risk of delay or damage, and you’ll be able to save money and protect the planet by taking advantage of the eco-friendly options.

Predictive Maintenance

This one goes right to the mechanics of freight – the machines we use to get things where they need to be.

AI can analyse sensor data from vehicles and equipment to predict potential maintenance issues, preventing breakdowns and delays. 

Maintaining the machines that serve as part of the freight sector’s infrastructure more efficiently means transport is more reliable, and the process remains greener, emitting less carbon into the atmosphere. Money is also saved, which can be passed down the chain, enabling everyone to benefit. 

Automated Warehousing And Operations

AI serves all elements of freight management, even down to picking, packing and sorting. AI-powered robots and automation in warehouse management tasks streamline processes, heavily reduce the risk of error and save on labour costs.

Enhanced Visibility And Tracking

Customers can benefit from precise real-time tracking with AI assistance. 

AI can analyse real-time data to provide accurate shipment tracking and improve supply chain visibility, allowing for proactive problem-solving and up-to-the-minute planning.

Demand Forecasting And Inventory Management

AI can analyse historical data and market trends to predict future demand for goods, enabling optimised inventory levels and reduced stockouts. Historical data will include important times of the year like Chinese New Year, Christmas, Easter and the back-to-school rush; you won’t have to remember all of the intricacies that go into manual freight management. 

Paperwork Automation And Document Handling

Here’s one the team like! AI can automate tasks like document processing, customs clearance, and freight contracts. All that time we spend processing documents, saved. Time savings in this admin area mean staff members can get more hands-on with the practical stuff because AI is supporting the paperwork side of things. Phew!

Benefits Of AI For Shippers

If it’s not clear already, let us spell out how AI assistance will benefit our customers.

Increased Efficiency

AI makes things faster. End of. No handwriting to decipher, historical data that’s mined at the click of a button, data-driven route planning… What more could you want?

More Direct

The entire freight management process is more easily planned and managed using AI assistance, and fewer people need to be involved, streamlining both communication and complex logistics. 

Reduced Cost

From administrators to warehouse staff, fewer bodies are needed to perform freight-related tasks. AI also helps to maintain machinery and vehicles, and the cost savings from both of these factors work their way down to savings for the shipper. And, of course, AI will optimise your route/carrier combination, ensuring you get the best deal. 

Fewer Mistakes

Even the most professional shipper or forwarder makes mistakes occasionally. We’re human, after all. 

Using AI to assist in the freight management process heavily reduces the risk of error. Things like paperwork problems and weight discrepancies are a thing of the past thanks to AI, as it can identify potential problems with a shipment ahead of shipping. 

Visibility

AI-assisted tracking means you can manage your flow with more accuracy, minimising delays and keeping everyone in the loop. 

Client Alerts 

Gold-standard tracking ability means customers get warned of any issues at lightning speed, With knowledge at hand, shippers can employ fast reaction times and sort issues quickly. 

Greener Shipments

Optimised freight routes = less fuel consumption. The freight world needs to take accountability for its emissions, and this way, you can do your bit for the planet.

Effective Comms

If you’ve read our recent blog on the topic, you’ll know all about how important effective communication is between a forwarder and a shipper. AI chatbots improve the speed and detail of comms for all parties involved, making sure everyone has the information they need when they need it.

The Road Ahead With AI In Freight

Some potential challenges sit alongside the adoption of AI into the freight industry, and it will be in the navigation of these that we understand AI’s true value.

• Initial investment costs. Custom AI solutions can cost a pretty penny to develop and roll out.
• Workforce training. For many, technology itself can be hard to get used to, let alone a smart, self-sufficient AI solution. Getting everyone on board and up to speed with how it all works is a massive task.
• The learning curve. Implementing a custom AI solution can take time. It requires lots of monitoring, data input and preparation and experimentation to ensure all aspects of freight management are dealt with. Especially if it’s a brand-new project. 

However, even with these blockers in mind, AI will create a more efficient, sustainable, and cost-effective freight ecosystem, so the benefits are plentiful (and far outweigh any negatives).

AI Is Transforming The Freight Industry

The AI revolution is here, and its integration into the freight sector is fast and furious. From faster freight to real-time analytics, AI is helping to drive the buying decisions of shippers worldwide.

Looking for a friendly forwarder who’s embracing AI to deliver exceptional service to its clients? You’ve found them. Contact Millennium today.