back to news and insights

AI and IoT in Logistics: How do the Internet of Things and AI work together?

We’re in an industry where every minute counts and precision is key. This is why the integration of Artificial Intelligence (AI) and the Internet of Things (IoT) has emerged as a game-changer among logistics businesses. It isn't just about harnessing data, it's about accelerating the pace towards actionable insights in real-time, fundamentally altering how logistics businesses operate and adapt. This synergy between AI and IoT revolutionises the way businesses manage their logistics, streamline operations, and optimise resource utilisation.

Let's delve deeper into how these cutting-edge technologies collaborate to reshape the logistics landscape.

Understanding AI and IoT

To comprehend the impact of AI and IoT in logistics, it's essential to understand their individual roles.

AI refers to the simulation of human intelligence processes by machines, particularly computer systems. In the context of logistics, AI algorithms analyse vast amounts of data to derive insights, predict outcomes, and make autonomous decisions. These algorithms continuously learn from new data, enabling them to adapt and improve over time. For example, AI-powered solutions can drive warehouse optimisation by optimising space, inventory management, and machinery utilisation, leading to enhanced operational efficiency.

IoT encompasses interconnected devices embedded with sensors and actuators, enabling them to collect and exchange data over the Internet. In logistics, IoT devices, such as sensors and RFID tags, are deployed throughout the supply chain, providing real-time visibility into assets, inventory, and environmental conditions.

The synergy of AI and IoT in logistics

The convergence of AI and IoT marks a significant shift towards more efficient and agile operations. This synergy brings a multitude of benefits to the logistics industry:

1. Real-time data insights

IoT devices generate a continuous stream of real-time data, offering insights into assets, inventory, and environmental conditions. AI algorithms analyse this data to extract actionable insights, enabling logistics companies to make informed decisions promptly. Whether it's predicting maintenance needs, or adjusting inventory levels, real-time data insights empower logistics professionals to streamline operations and minimise disruptions.

2. Predictive analytics

By leveraging historical data and machine learning algorithms, AI enables predictive analytics in your warehouse at speed. IoT sensors continuously collect data on various parameters such as temperature, humidity, and location. AI algorithms process this data to forecast demand, identify potential bottlenecks, and anticipate supply chain disruptions.

3. Enhanced visibility and tracking

IoT-enabled tracking devices provide real-time visibility into the movement of goods throughout the whole supply chain. AI algorithms analyse this data to optimise inventory management, track assets, and improve delivery accuracy. From monitoring inventory levels to tracking the location of shipments, the synergy between AI and IoT enhances transparency and traceability, enabling logistics companies to deliver superior customer experiences.

4. Optimised resource and space utilisation

By analysing data on warehouse capacity, or workforce productivity, AI algorithms optimise warehouse layouts and staffing schedules, thereby maximising resource and space utilisation.

Closing the Visibility Gap™ in your operations with AI and IoT

Visibility is crucial for operational effectiveness, yet many organisations face challenges due to a lack of visibility, resulting in numerous risks and inefficiencies. Companies also often find themselves without this crucial visibility until it's too late, exacerbating the impact of disruptions and hindering timely decision-making.

As we reflect on the disruptions caused by COVID-19 four years ago, it becomes evident that achieving resilience and a well-balanced supply chain hinges on visibility. This visibility triggers a chain reaction of actions crucial for adapting to dynamic circumstances.

At the core of this visibility lies intelligence – the ability to access fast and reliable information consistently across the entire business landscape.

However, many organisations grapple with fragmented systems and data silos, where information is scattered across various platforms. This lack of integration impedes the seamless flow of data. Traditional systems fall short in capturing both the volume and frequency of data, leading to blind decisions based on outdated or incomplete information, thereby widening the gap - the Visibility Gap™.

By combining AI-driven analytics with real-time data from IoT devices, Dexory enables businesses to respond swiftly and make informed decisions to effectively manage disruptions. By bridging the Visibility Gap™ and delivering precise, real-time data insights, DexoryView empowers logistics teams to navigate uncertainties confidently, reducing costs, and enhancing operational resilience.

Learn more about the Visibility Gap™: how it impacts your operations and how to close it

The next level of intelligence: DexoryView

DexoryView combines the use of autonomous robots and enhanced sensors to provide accurate, real-time information on goods and assets across warehouses. Leveraging AI algorithms, Dexory accelerates time to insight and action, enabling logistics teams to make data-driven decisions and drive operational excellence. With DexoryView, logistics professionals gain unprecedented visibility and control, ushering in a new era of efficiency and productivity in the logistics industry.

DexoryView's AI-powered applications revolutionise three key aspects of your warehouse operations:

1. Warehouse performance: By implementing slotting methods, consolidating stock, optimising space, and planning paths, Dexory maximises warehouse value, enhances revenue, and drives cost optimisation. Rapid audit and analysis of inventory across various locations save thousands of hours yearly, boosting operational efficiency significantly.

2. Advanced issue detection and response: State-of-the-art image analysis and machine learning models automatically detect and address issues such as damaged stock, fallen inventory, and rack infrastructure damage, enhancing compliance and minimising disruptions.

3. Environmental monitoring: Sensor fusion across various data sets, including temperature, humidity, and gas detection, ensures goods are stored in optimal conditions, mitigating risks and maintaining product integrity.

Conclusion: Advancing logistics through AI and IoT integration

Through AI-driven analytics and real-time data insights from IoT devices, logistics companies gain the ability to make informed decisions promptly, predict outcomes, and adapt to dynamic circumstances. This collaboration enhances visibility, transparency, and traceability throughout the supply chain, ultimately delivering superior customer experiences.

Moreover, by bridging the Visibility Gap™ through DexoryView, logistics teams can navigate uncertainties confidently, reducing costs, and enhancing operational resilience. The solution is powered by AI and enhanced sensors that revolutionise warehouse operations by maximising performance, detecting issues proactively, and ensuring optimal environmental conditions.

As technology continues to advance, the integration of AI and IoT will play an increasingly vital role in driving efficiency, resilience, and innovation in the logistics industry.

EU flag

This company has received funding from the European Union's Horizon 2020 research and innovation programme under grant agreement number 849938