The application of artificial intelligence (AI) and machine learning will play a critical role in sustaining logistics and global supply chain businesses going forward.This is according to Spencer Fung, CEO of Hong Kong-headquartered Optix Solutions.Speaking during a recent webinar hosted by the Hong Kong Trade Development Council and the Exporters’ Club Western Cape, Fung said leveraging technology to optimise work forces would become the norm.
“In the logistics industry many companies are facing downsizing and restructuring. Work behaviour and team structures have changed. All of this will have an impact on operational experience as critical know-how is being lost within organisations.”According to Fung, AI will be the critical tool in assisting companies to streamline and still deliver the operational efficiency required. “AI can be used very successfully to retain the experience and the know-how within an organisation.”
He said using advanced technology to transform a business, however, required a strategy. “It broadly involves three steps – and the first is digitalisation. Without data you cannot introduce machine learning or AI. Once you have the data and you have digitised operations, the next stage is predictions followed by the third which is optimisation.”
He said in the logistics industry AI would soon become the trend, optimising distribution and warehouse management.