Logistic Challenges with AI

Making the Infeasible Feasible with AI

In the article “Making the Infeasible Feasible with AI“, for MH&L, Tom Moore discusses addressing Logistic Challenges with AI and how AI is transforming the seemingly insurmountable challenges in transportation and logistics, offering unprecedented solutions.

May 1, 2023

Deployment Dilemma

Efficient deployment from production to distribution is crucial, yet the variability in customer demand and supply plans creates operational chaos. Figure 1 illustrates this real-world challenge.

ProvisionAi tackles the complexities in daily deployment, ensuring products reach customers seamlessly while optimizing costs and service levels.

Bridging Planning and Operations

The Formidable Challenge

Converting volatile supply plans into smooth operations poses a significant challenge. ProvisionAi endeavors to:

Match warehouse capabilities with customer shipping needs.
Secure preferred carriers for transportation.
Minimize freight, overtime, and detention costs.
Improve overall customer service.

Complexity Unveiled

The deployment issue is intricate due to the following:

The holistic treatment of each lane is part of a more extensive system.
The necessity to prioritize products for full truckloads efficiently.
Solving complex time series problems, considering transit times.

AI’s Triumph

ProvisionAi introduces AI, specifically reinforcement learning, to create optimal loads swiftly, resulting in a leveled deployment plan.

Turning Plans into Action

Unleashing the Leveled Plan

ProvisionAi provides visibility into every load and allows tendering loads into the future, offering carriers a commitment.

Strategic Tendering

Using a placeholder item initiates tendering, ensuring early reservation. The final load details are added before shipping, optimizing supply planning accuracy.

Optimization Challenge

Determining the highest payload while prioritizing high-demand products on reserved trucks is a significant challenge addressed by operations research techniques and AI.

Remarkable Results

AI’s Impact

ProvisionAi’s integration of AI leads to:

Swift resolution of large networks with thousands of weekly deployment loads.
Planner-free tendering, days in advance.
Reduced costs and maintained service levels.
Smoothed lanes and even work distribution across sites.

Long-term Benefits

Predictability and cost reduction for carriers result in improved service and lower costs. Guaranteeing daily lane volume becomes a reality in some cases.

The Technological Leap

Reinforcement Learning’s Rise

Five years ago, reinforcement learning was in its infancy. Today, combined with other technologies, it offers significant savings and transformative value across the supply chain.

Tom Moore’s Vision

In the words of Tom Moore, CEO of ProvisionAi, “We deploy the needed product at the best cost from sites that can ship to sites that can receive it.”

ProvisionAi is leading the charge in making the infeasible feasible in the logistics world through AI.