There is a new digital technology potential unlocked for the better performance of supply chains. Artificial Intelligence is one of the most comprehensive digital technologies to implement in supply chains. The implementation of AI in these supply chains is not so easy and straight. These digital transformations using AI are really helpful for a shipping company and freight shipping. There are some common myths that need to be cleared in order to implement this digital technology.
Common AI Myths
Myth # 1: Is AI = Machine Learning?
Machine learning falls under the branch of AI. It is said to be the subset of AI with improvements in its advanced technology. Artificial Intelligence helps to perform various complex tasks including robotics, visual and speech recognition, and natural language processing etc. All the algorithms are pre-defined in AI to act and make decisions. These algorithms can be defined using various techniques including pattern recognition, heuristic, classification, clustering, or independent component analysis. These techniques are used on analyzed data to make the working of algorithms even better.
Myth # 2: AI is all about Automation
One thing is clear. AI is not all about automation. Automation can be done mechanically, so what makes AI so special? It’s the ability to take decisions by machine using its own Intelligence. The Intelligence is based upon the algorithms given to the machine. The machine will improve its Intelligence-based upon the set of instructions. By utilizing the automation and intelligence capabilities of AI, you can produce predictions by automating your inventory and sales data to flow to your planning system. The system will also update new business rules according to its own Intelligence.
Myth # 3: AI produces instant ROI
AI does not work so fast. It is not like a simple software deployment. It’s a time taking process in which a lot of data is combined and cleansed to get some results. There is a whole training process for AI and ML, where all the data is combined and cleansed in order to implement the system correctly. If you are looking to get some benefits from AI to your supply chain operations including planning, forecasting, and input data must be cleaned. The automation tools are available to save all your data from corruption.
Myth # 4: AI tells the reason behind a problem
AI is very responsive in supply chain systems because it automatically checks the problems and then fixes it, but it’s unable to figure out the reason behind the problem till now. However. AI is really great, but it’s not bias-free.
Myth # 5: More data = Better Results
The more data will obviously produce better results but only if your data is cleansed. If your data is not cleansed then forget about AI working for your supply chain network. When the data is cleansed, then even simple machine learning techniques can create a huge impact on your business. The quality factor of data is really important if you want AI to work properly. No single company owns all the data. You also have to collect data from your cross-departments. If you use the best and cleansed data, then it can give you better results for you supply chain networks or shipping companies.
Your data must be accurate and updated. The data should be about your demand and supply. The best way is to implement AI for your whole supply chain system to maximize the results.
Myth # 6: AI will replace humans?
AI cannot replace humans. It may reduce some jobs that are easily replaceable by Artificial Intelligence systems, but humans will not be replaced by robots so easily. Humans and AI work together to generate the best possible results. Imagine a scenario where a doctor needs to perform surgery. He can use AI technology to make the whole process error-free, but it does not eliminate the need of the doctor.
AI will add more value and ease to our systems by making the whole system less prone to errors because Artificial Intelligence is capable of producing more accurate results. In a chain supply network scenario, you can leave complex decisions over to your team where proper planning is required whereas some other decisions such as shipping, replenishment or fulfilment can be handed over to an AI system for execution.
At QuickLoad, we believe in how technological improvements like Artificial Intelligence can make a big impact on freight shipping. We believe in the power of technology and that’s why we work hard to be a Smart Trucking Network for All Innovative Shipping Companies. Follow our blog posts to get updated on technology, logistics, and trucking trends!