The potential of artificial intelligence (AI) to revolutionize fleet safety within the supply chain logistics and transportation industries remains largely untapped. Recent research by Netradyne at the Gartner Supply Chain Planning Summit has highlighted the significant benefits AI can bring to enhancing fleet safety and operational efficiency across the board.
Despite the promising advantages, only 33% of supply chain professionals currently utilize AI to assess and monitor fleet safety performance. However, a notable 81% of respondents expressed strong interest in incorporating AI platforms within the next year. This surge in interest aims to mitigate risks, improve safety measures, and bolster operational performance.
A range of challenges persist for third-party logistics (3PL) providers, including the need for accurate, timely, and cost-effective goods delivery. A significant concern is the lack of fleet visibility and the limited availability of drivers, both of which hamper delivery accuracy and overall logistics performance. Accidents serve as a major issue, often resulting in product damage, negative impacts on brand image, driver well-being, and increased costs. Alarmingly, 46% of respondents were uncertain about the total financial impact of accidents on their businesses.
Currently, outdated technologies such as telematics and GPS are widely used for fleet management and safety purposes but have limited functionality. Data sharing with partners is already a common practice, with 52% of respondents engaging in it to enhance safety standards. This growing recognition of AI-driven data’s value is significant, especially as it offers more precise and meaningful insights into fleet operations when compared to older technologies.
AI-driven solutions are emerging as essential for improving delivery precision, timeliness, fleet visibility, and driver availability. These tools have the capability to predict and prevent accidents, reduce traffic violations, and enhance driver behavior, leading to safer and more efficient operations for 3PL providers, ultimately resulting in cost savings and increased profitability.
Durgadutt Nedungadi, Senior Vice-President for International Business at Netradyne, emphasized the escalating challenges faced by logistics providers. These include increasing road traffic, unpredictable conditions, higher end-customer expectations, rising costs, shrinking markets, and stricter insurance requirements. He highlighted AI as a vital tool in managing these challenges through improved fleet operation visibility.
Vision-based AI technologies, in particular, offer the ability to deliver real-time insights, boost safety, predict potential issues, and ensure timely interventions. As the supply chain industry becomes increasingly complex, leaders are now adopting AI-driven data analysis to enhance operational efficiency, safety, and maintain a competitive edge.
Ultimately, the findings underscore AI’s significant potential to transform fleet safety and efficiency in the supply chain logistics and transportation sectors. By addressing present-day challenges and leveraging precise, data-driven insights, AI has the power to substantially improve operational performance and profitability for 3PL providers.
