AI in logistics: How is it shaping our industry?

Technology-01.jpeg.jpg

This month, Sam Fagan shares his insights on how AI is shaping our supply chain…

Long gone are the days of playfully debating if robots might one day take over. In 2024, the presence of artificial intelligence (AI) in our daily lives is undeniable, and its impact on our world is profound. 

The simple reality is that AI isn’t just coming; it’s already here.

But at Fagan & Whalley, one question has caught our attention this month. In an industry as vital as ours, which has conventionally been characterised by a rich history of expertise and tradition, is the supply chain management sector truly prepared to embrace the rise of AI in logistics? 

Let’s take a look…

What is AI?

AI is defined as a branch of computer science that is dedicated to creating systems capable of performing tasks that typically require human intelligence. Examples of such tasks include interpreting complex data, recognising patterns, learning from experiences and making decisions. 

AI in Logistics: What does that look like?

Having gained a basic understanding of the broader concept of AI, it’s crucial to appreciate its real-world impact on our daily lives. 

The last few years have been transformative for much of the logistics industry. 

With the growing rise of new technologies, new ways of working and new expectations – many logistics companies have been driven to rethink the way we operate. With that said, there is one specific area where the impact of AI has been particularly pronounced: vehicle telematics.

AI in Logistics: Vehicle telematics

It could be argued that telematics is the backbone of modern logistics. 

Telematics offers us real-time tracking and monitoring of vehicles and driver behaviours, – essentially, giveing us greater insight into our fleet and operations. 

While telematics has existed for well over a decade, the field is constantly evolving as technology improves and develops. In the last couple of years, AI has supercharged the results gained from telematics by allowing companies to create safer roads, improve fuel efficiencies, predict vehicle maintenance, increase route optimisation, reduce operational costs and much more. 

Let’s take a closer look at how AI is helping logistics companies evolve…

Increased driver safety

Firstly, a critical benefit of vehicle telematics is increased driver safety. Specifically, the implementation of advanced camera systems that leverage AI to detect driver distractions is a potentially transformative safety feature. 

These intelligent systems are designed to monitor for signs of distraction or fatigue and can issue timely nudges or alerts to drivers, reminding them to refocus or take necessary breaks. 

This proactive approach not only enhances the safety of drivers themselves but also contributes to the overall safety of our roads.

Improved customer service through vehicle tracking

Secondly, the integration of AI in logistics, particularly through vehicle tracking, significantly enhances customer service and customer satisfaction. Telematics means logistics companies can provide customers with real-time updates about the location of their goods, expected delivery times and any potential delays. 

In this day and age, this transparency isn’t a novelty or an ‘extra’ service offering – it’s simply the bare minimum expectation. We live in a world where instant information is expected at our fingertips, and this extends to the logistics industry.

For many of our clients, the ability to track shipments builds trust with their consumers. We know from data that when consumers have access to the progress of their delivery, it reduces uncertainty and anxiety – particularly for time-sensitive or high-value shipments. While this level of service was once a luxury, it is now a competitive necessity in the logistics industry – and telematics allows companies like our own to meet these high standards. 

Prediction of vehicle maintenance

Yet another way that telematics is currently benefiting the logistics industry is through the ability to predict when vehicles in fleets will require maintenance. This is also known as ‘predictive maintenance’. 

Traditional maintenance schedules often relied solely on intervals or mileage, which often led to unnecessary service checks or, conversely, unexpected breakdowns. Telematics changes this for fleet operators by using predictive analytics to forecast when a vehicle will likely require maintenance. These predictions are based on real-time data and historical performance metrics.

Not only does predictive maintenance optimise fleet performance, streamline operations and reduce downtime, but it also significantly cuts costs associated with unexpected breakdowns and repairs. The predictive model allows for more efficient use of resources by ensuring that maintenance is performed exactly when needed rather than on a rigid schedule that may not reflect the vehicle’s actual condition or usage patterns.

Reduced carbon emissions

Finally, the logistics industry is increasingly under pressure to demonstrate environmental responsibility and demonstrate sustainable logistics practices. 

Through optimising routes, minimising empty running and preventing unnecessary maintenance on vehicles, AI offers companies a tangible way to lessen their carbon footprint and shift towards greener operations. This is a huge advantage not only for logistics companies but also for their clients, who will often have sustainability targets of their own to meet, too. 

As time ticks by, we predict this will only continue to be necessary for companies to future-proof themselves against shifts in consumer expectations and regulatory requirements. 

AI in logistics: What do Fagan & Whalley think?

At Fagan & Whalley, we pride ourselves on our investments in cutting-edge resources and tools that create safer, more innovative and efficient ways of working. 

We’re confident that our integration of AI in logistics operations not only aligns with our commitment to innovation and sustainability goals but also enables us to serve our customers better and contribute to safer roads. 

For more information on how the technology we use can help streamline your logistics solutions – get in touch. Speak to us on 01282 771983 or drop us a message here.

Enjoyed this? Read more from Fagan & Whalley Limited

Latest news

1

Barnfield Construction transitions to an Employee-Owned Business Staff Cheer Photo.jpg.jpg

Barnfield Construction transitions to an Employee-Owned Business

24 Jan 2025

2

Wallsauce looks to grow B2B customer base with increased trade focus Martin Emmott Rosebud and Andy Gerraty Wallsauce

Wallsauce looks to grow B2B customer base with increased trade focus

24 Jan 2025

3

CBP goes into administration Community and Business Partners in Blackburn with doors shut

CBP goes into administration

23 Jan 2025

4

Plan moves forward for new £13.2m Innovation Hub Councillor Phillippa Williamson and Coun Aidy Riggott

Plan moves forward for new £13.2m Innovation Hub

22 Jan 2025

5

Record turnover as Napthens continues to grow Stephen Faulkner

Record turnover as Napthens continues to grow

22 Jan 2025

Background image for hub sign up block

LBV Hub

Leverage Lancashire Business View platforms

Post your news
Post your events
Post your offers
Build your network
Improve your SEO
Gain coverage in the magazine
Sign-up
Events
The Lancashire Festival of Business
FOB 315
Exhibitions
30 Jan 2025

The Lancashire Festival of Business

Impact Conferencing, Burnley, BB12 6QP

09:30 - 16:00

Skills Bootcamp in Procurement - Cohort 3
Blue-Modern-Land-Travel-Youtube-Thumbnail-2-1024x576.png.png
LBV Hub Awards
14 Jan 2025 - 18 Mar 2025

Skills Bootcamp in Procurement - Cohort 3

Community & Business Partners CIC, Blackburn, BB2 3UA

09:30 - 13:00

North West Holiday Home Show
PLG - NWHHS - Social - Jan 2024.jpg.jpg
LBV Hub Exhibitions
18 Jan 2025 - 26 Jan 2025

North West Holiday Home Show

South Lakeland House Showground, Yealand Redmayne, LA5 9RN

09:00 - 14:58

The Marketing Meetup IRL: Lancashire
LBV Hub Event Image.png.png
LBV Hub Networking
30 Jan 2025 - 30 Jan 2025

The Marketing Meetup IRL: Lancashire

Strawberry Fields Digital Hub, Chorley, PR7 1PS

18:00 - 20:00

February Preston Tech Connection Meet-Up: Tech & Our Planet
PRESTON TECH CONNECTION jan.ai.png.png
LBV Hub Networking
12 Feb 2025 - 12 Feb 2025

February Preston Tech Connection Meet-Up: Tech & Our Planet

Society1 Coworking Space, Preston, PR1 3LT

18:00 - 19:30

Police Apprenticeship event
Student Centre Autumn 2022.jpg.jpg
LBV Hub Social
12 Feb 2025 - 12 Jan 2025

Police Apprenticeship event

University of Central Lancashire, Foster Social Space , Preston , PR1 2HE

16:00 - 19:00

The Business Network Central & East Lancashire
LBV Hub Networking
13 Feb 2025 - 13 Feb 2025

The Business Network Central & East Lancashire

Mytton Fold, Langho, BB6 8AB

11:30 - 14:15

Sub36 Networking - Behind the beans
Sub36 Social1200Atkinsons New
Networking
14 Feb 2025

Sub36 Networking - Behind the beans

Atkinsons Speciality Coffee, Lancaster, LA1 1 EX

09:00 - 11:30

Red Rose Awards 2025
Red Rose Awards 2025
Awards
13 Mar 2025

Red Rose Awards 2025

Winter Gardens Blackpool

18:00 - 11:59

Lancashire Business Day 2025
241122lbvlancashiredaylhp0647web
Networking
27 Nov 2025

Lancashire Business Day 2025

12:00 - 17:00

Advertise with us

Reaching 50,000 members, our print, digital and event platforms offer a fantastic way to raise your business profile and help you grow.

Find out more LBV120 Online Graphic 1
Subscribe now

Weekly news bulletin