Everyone from enterprise CEOs to regular consumers knows that shipping delays have become increasingly more problematic over the last several years. The pandemic, severe weather events, political unrest, and other global factors have contributed to this trend.

That’s why it’s more vital than ever to predict shipping and supply chain delays as much as possible. Companies that are able to do this through thoughtful logistics operations can stand out from their competition, save money, and increase customer satisfaction. This article explores how machine learning in logistics makes optimized routing and reduced delays achievable.

What is the role of machine learning in logistics?

Machine learning is a subset of artificial intelligence (AI). It allows computers to learn from large data sets to make predictions for the future and improve processes.

In logistics, AI technology and machine learning translate to many benefits, which we discuss in more detail below:

  • Forecasting — and ideally avoiding — shipping delays

  • Optimizing shipping routes

  • Avoiding supply chain disruptions

  • Reducing costs for all elements of the supply chain

  • Increasing customer satisfaction

As you’ll read in the following sections, these benefits offer even further benefits downstream, for the logistics industry, carriers, fulfillment centers, and eCommerce end recipients.

How does machine learning predict shipping delays?

Using machine learning in logistics starts with collecting data. This may be drawn from:

  • Past deliveries

  • Company records

  • Public information

  • Carrier statistics

  • Historic weather patterns

  • Seasonal demand

That information is then used to create predictive analytics for shipping using models that will ultimately generate smart logistics solutions in a variety of settings. Typically, before these models are put into commercial use, that data is separated into two sets. One is used to train the supply chain visibility software and similar programs (machine learning); the other is used to test and evaluate performance before implementation.

Different machine learning algorithms are employed to work with the data in question and build a model. For instance, decision trees may be used to create “if/then” protocols. If a certain route is not viable due to weather or something like the Suez Canal obstruction in 2021, then an alternative route is automatically selected. Linear regression models and gradient boosting are also commonly used algorithms.

At SEKO Logistics, we use many of these models to address delays proactively. Our goal is to ensure the highest rate of on-time delivery for our clients as possible.

What are the benefits of AI-driven route optimization?

With the help of AI and machine learning, data-driven freight management has been ratcheted up a notch to AI-powered route optimization. This means delivery routes not only receive data from a variety of sources; real-time factors like weather and traffic can be used to make constant adjustments for the best results — usually the fastest delivery possible.

There are other benefits to the use of AI in supply chain optimization:

  • Better inventory and warehouse management to avoid under- or overstocking items

  • Predictive vehicle maintenance to avoid breakdowns and delays

  • Reduced fuel costs and emissions, which are better for the environment

Additionally, everyone in the supply chain reaps the advantage of fewer queries due to delays and missing deliveries. Companies can focus their time and resources elsewhere to grow revenue and profits.

How does machine learning enhance supply chain visibility?

Logistics innovation with AI doesn’t only benefit the end of the supply chain. Supply chain visibility tools can be built into machine learning models as well.

The resulting advanced freight analytics lets users know where shipments are at all times in real-time. That allows for both AI-generated and human decision-making if changes need to be made suddenly. And it permits users to notify relevant parties if changes to the initial shipping timetable need to be made.

For example, eCommerce vendors can make adjustments to their websites, put different merchandise up for sale, and notify customers about purchase delivery as needed.

In order to facilitate this type of agile operation for our clients, SEKO Logistics provides them with full visibility of shipments in progress in real-time. Our supply chain visibility software is easily accessed through a client dashboard. As our algorithms create pathways for seamless supply chain management, you are also able to stay current with locations and any necessary changes.

What challenges can machine learning address in logistics?

As mentioned above, logistics automation technologies can mitigate many risks, such as delays, bottlenecks, and basic inefficient routing. When used properly, AI in supply chain steps can even be proactive rather than simply reactive.

There are several other common challenges that machine learning can conquer. First, it can work with data sets that would be too unwieldy for humans to analyze manually. This saves time and lets logistics professionals get out in front of potential problems rather than constantly playing catch up.

Second, it eliminates most of the possibility of human error. Think of it like using a computerized spreadsheet versus a hand-written ledger.

What industries benefit most from machine learning in logistics?

Virtually any industry that relies on logistics can benefit from machine learning in this sector. Examples include:

  • eCommerce

  • Retail

  • Manufacturing

  • Automotive

  • Transportation

  • Moving

  • Electronics

All of these industries depend on data-driven logistics systems and decisions to satisfy customer demands in a timely manner.

How does SEKO Logistics use machine learning in its operations?

When you partner with SEKO Logistics, you get the benefit of machine learning tools to optimize delivery routes, reduce shipping delays, and enhance overall supply chain performance. We work with a wide range of industries and offer white glove services, real-time shipment tracking, and a vast network of global hubs to bring your business the best in logistics today.

Ready to learn how machine learning at SEKO can elevate your company? Reach out and let us know how we can help.