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How AI is reshaping logistics and warehousing

Warehouses are no longer just storage facilities. In today's interconnected world, they play a crucial role in an efficient supply chain, connecting supply and demand.

Next Move Strategy Consulting indicates that by 2030, the warehouse robotics market will reach just under $16 billion. Further, 77% of organisations are serious about automated warehouse systems and mapping a plan to maximise data-driven performance.

While we observed a growth in warehousing, AI has also been largely developed, but in all industries. The real-world AI we see today is driven by breakthroughs in algorithms, high-performance edge computing, and data availability, leading to its commercial success in 2024.

It's no surprise that AI is now integral to various industries, from finance and healthcare to manufacturing and supply chains. Its seamless integration with existing technologies is driving the widespread adoption we see today.

It is clear, four years after the disruptions caused by COVID-19, that the way we consume goods: the demand has changed and we expect to receive our goods as quickly as possible. As retailers add more inventory to meet consumer demand, the need for distribution centres and effective management of space increases and many manufacturers are diversifying their supply chains, creating opportunities for third-party logistics providers. This increases the need for automation, people and advanced technologies like AI.

Building a resilient and a well-balanced supply chain hinges on visibility. Most importantly, visibility starts a positive, company-wide, flywheel of strategic and tactical benefits for businesses and this is how robotics and AI go hand in hand. 

"Today’s businesses need real-time data and visibility to obtain an accurate picture of their business performance and allow them to optimise their processes and space. If companies lack visibility into areas such as stock accuracy, or the movement of goods, they are less likely to operate in a cost-efficient way. Thanks to the technological advances made in robotics and AI-powered visibility platforms, warehouse operators can now bring real-time visibility into the frame, and boost both efficiency and productivity." says Andrei Danescu, CEO and Co-founder of Dexory.

With the advancements AI offers, the industry will continue to innovate to keep pace with these challenges.

To explore how AI is reshaping logistics and warehousing, read The AI Journal latest article written by Andrei Danescu: Read more

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