How AI will transform last-mile logistics in 2024

The logistics industry is on the brink of a revolutionary transformation, propelled by the rapid advancements in Artificial Intelligence (AI). 

According to McKinsey, implementing AI-enabled supply-chain management has enabled early adopters to improve logistics costs by 15 percent.

From optimising supply chains to enhancing last-mile delivery, AI is set to redefine every aspect of logistics operations, promising greater efficiency, accuracy, and sustainability. 

Here are 3 ways AI will transform logistics in 2024:

Route Optimisation 

By selecting the most efficient routes, AI reduces delivery times, fuel consumption, and transportation costs, while simultaneously improving customer satisfaction by ensuring timely deliveries. 

Combined with Pargo’s consolidated deliveries of multiple orders to Pargo Points nationwide fuel consumption and emissions per order are reduced. This results in a more sustainable last-mile logistics solution.

Delivery Forecasting

Predictive analytics powered by AI can anticipate delivery demand based on historical data, seasonal trends, and contextual factors. 

Now you need not stress about the unpredictable demands of peak periods like Black Friday or Christmas as AI capabilities enable organisations to use real-time data in their forecasting efforts. 

This enables logistics companies to allocate resources more effectively, ensuring that the right number of delivery vehicles, packaging, and personnel are deployed to meet demand spikes, thereby minimising delays and optimising resource utilisation.

Pargo’s dedicated Data Team works diligently to optimise supply chain operations, improve route planning, enhance inventory management, and provide insights for better decision-making.

Autonomous Delivery Vehicles

The rise of autonomous vehicles, including drones and ground-based robots, is reshaping last-mile logistics. 

AI-powered autonomous vehicles can navigate urban environments, avoid obstacles, and deliver packages with minimal human intervention. 

This not only reduces delivery costs but also enables faster and more flexible delivery options which could benefit densely populated areas like South African townships.

The intersection of AI and logistics is creating a future where businesses can thrive amidst challenges, turning disruptions into opportunities.