Many tools come into play for managing the logistics of trucking supply chains and fleet management. Artificial intelligence business protocols benefit when working the ins and outs of modern transportation management. AI in business takes on many forms and can apply to business operations, large and small. Today’s most significant appeal of AI services and options for logistics managers and trucking companies is the customized and individualized approach necessary for success.
As highlighted by Supply Chain 24/7, “Artificial intelligence implementation has no one-size solution, and what the successful outcomes look like depends almost entirely on an organization’s specific goals and needs. The one common thread for almost all businesses is that this technology is here to stay – so it’s time to figure out what it means to you and your customers.” Determining the best ways to master business and AI integration and application remains at the forefront of modern trucking services.
To perfect artificial intelligence business services, every team member, manager, third party partner, and customer contact must remain on the same page. Incorporating AI technology for businesses makes it possible to coordinate and collaborate more effectively, even amid volatile markets and uncertain times. Successful application of business AI and automation can improve back-office services, save resources, reduce expenses, and boost profits for trucking companies today. Balancing the vast and disparate needs of shipping, freight, and logistics can be complicated without the right tools and innovations.
What Is Artificial Intelligence for Business Leaders?
To fully understand the value and impact of artificial intelligence business services, it is critical to understand what artificial intelligence means in the trucking market. One major cost trucking companies and transportation service providers deal with is invoice and billing errors. These can be significant in scope and size when business and AI processes cannot effectively detect and respond to them.
More often than not, these miscalculations and errors are minor and often go unnoticed due to poor automated management processes. These small overcharges, expenses, and lost revenue can build over time and have a significant financial impact. AI in business and freight management is a style of artificial intelligence that makes it easier for team members to target, find and fix problems much sooner and more efficiently than people can. As highlighted by McKinsey & Company in early 2021, “Successfully implementing AI-enabled supply-chain management has enabled early adopters to improve logistics costs by 15%, inventory levels by 35%, and service levels by 65%, compared with slower-moving competitors.” Properly onboard systems designed for artificial intelligence business operations make it easier to keep up with ROI, profits, losses, expenses, and freight invoice auditing. Effective business AI can mean the difference between profits and losses or success and failure for trucking companies today.
How Does Poor Integration of AI Technology for Business Lead to Higher Costs?
When it comes to understanding the business of AI, the impact it can have on trucking company services, and the reach of artificial intelligence business tools, cost impacts often come to mind. The Wall Street Journal highlighted the growing trend of rising costs in a late 2021 article: “Overall, domestic shipping rates for moving goods by road and rail in the U.S. are up about 23% this year from 2020…Delivery giants FedEx Corp. and United Parcel Service Inc. said rates would go up an average of 5.9% next year across most services, the first time in eight years that either company had annual increases above 4.9%.” The need for AI and machine-driven processes has never been higher. The growing demand for effective, reliable, affordable automation and machine learning services mirrors current shipping and transportation trends.
But what does a lack of understanding, integration, and acceptance of this technology look like for trucking companies? The following costs often coincide with poor automation of artificial intelligence business and a lack of innovative transportation management services:
- Increased pressure on workers to do manual tasks using outdated tools or methods.
- A higher risk for errors and mistakes can have detrimental effects on the network.
- More opportunities for communication issues and mistakes caused by human choice.
- Less chance of detecting issues when they occur before they cause problems.
- Manual processes often prove slow, cumbersome, costly, and inefficient.
- Pay rates and driver charges become more volatile and error-prone with time.
- Higher fuel costs and diesel prices add to increased fees and unplanned expenses.
- Inaccurate data processes and data access limit planning and budgeting.
- Overall efficiencies add time, costs, and risks to every step of the transportation process.
- More chance for errors in communication and coordination between team members.
- Lack of insights into short-term and long-term business goals and industry milestones.
- There are no precise data and insights to help navigate peak and valley trends and cycles.
- Poor freight auditing for payments, invoices, and financials at every transport stage.
- There is little to no sense of control over drayage, detention, and final mile expenses.
- More significant inaccuracies with freight accounting and expense monitoring.
Trucking business and AI-directed services are no longer relegated to a few specific niche markets and high-end industries. It is becoming more prevalent than ever as more enterprises and markets discover the benefits and necessity of AI in business operations.
According to a Statista 2022 report, “The worldwide revenue for the artificial intelligence (AI) market, including software, hardware, and services segments, was around 281.4 billion US dollars in 2020. It is estimated that the AI software segment brought in 88% of the total AI market revenues with 247.7 billion U.S. dollars in that same year. In 2021, the global artificial intelligence market was anticipated to increase revenue, reaching 327.5 billion U.S. dollars.” By understanding artificial intelligence business tools and the impact that effective automation and AI in business processes can have, trucking companies are more likely to grow and be successful.
And it all stems from a clearer understanding of AI technology for businesses of all sizes and all kinds of parcel volumes.
Understanding the Benefits of Business AI Within the Modern Supply Chain Network
At the heart of improving artificial intelligence business services and operations is the necessity to reduce overspend and helps back-office function and productivity across the entire network.
In businesses, particularly those involving transportation services and business logistics, AI is about streamlining processes, improving front and back-office operations, enhancing customer experience, and lowering operational costs.
Based on reports focused on industry response to the business of AI from SupplyChainBrain, “Three-quarters of all supply chains have experienced difficulties during the COVID-19 pandemic, leading companies to consider reconfiguring their supply chains to promote greater resiliency.” The benefits of the innovative artificial intelligence business processes within the industry today include:
- Actionable analytics are provided by integrated AI technology for business processes.
- Practical decision-making processes fueled by integrated business and AI tools.
- Faster transportation and delivery options from AI in business insights.
- Better artificial intelligence business options such as hub injection and zone skipping.
- Ability to use freight data to work with real-time processes covered by business AI.
- Advanced AI technology for business that allows for better resource management.
- Business AI insights to understand market trends better to prioritize lanes and routes.
- A practical approach for improving artificial intelligence business with enhanced analytics.
- Advanced auditing and anomaly detection services with integrations for AI in business.
- Business of AI insights during the market, financial, and consumer uncertainty periods.
Artificial intelligence for businesses focused on trucking and transportation services can improve end-to-end functionality and boost profits while reducing costs throughout the transportation services market.
Maximize the Benefits and Impacts of Business and AI Management by Partnering With Intelligent Audit
Today’s transportation market desperately needs artificial intelligence business tools and processes when dealing with logistics, automation, innovation, and continued recovery and growth. Embracing modern AI in business cost control plans and procedures helps trucking companies and businesses focus their time, energy, and resources where it is needed the most. Freeing up time, labor, and resources and leaving the mundane processes to business AI makes the most sense from a productivity and profitability standpoint. Keeping up with the latest technology and innovations is easier with the right industry partner on your side. Contact Intelligent Audit today to learn more about embracing automation and artificial intelligence for business services and operations that can save time and money.