PUBLISHER: The Business Research Company | PRODUCT CODE: 1657253
PUBLISHER: The Business Research Company | PRODUCT CODE: 1657253
Artificial Intelligence (AI) in logistics and supply chain management involves the application of advanced computational technologies to enhance and automate various processes within the supply chain, from procurement of raw materials to the delivery of finished products.
The AI in logistics and supply chain management market consists of revenues earned by entities (organizations, sole traders and partnerships) through sales of AI in logistics and supply chain management that are utilized by a broad spectrum of stakeholders, including manufacturers, retailers, logistics service providers and end consumers, aiming to improve efficiency, reduce costs and increase customer satisfaction. AI is employed throughout the supply chain lifecycle, encompassing activities such as demand forecasting, inventory optimization, warehouse management, transportation planning and order fulfillment.
The global AI in logistics and supply chain management market was valued at $4,993.00 million in 2019 which grew till 2024 at a compound annual growth rate (CAGR) of more than 37.00%.
Rising Fuel Prices And Transportation Costs
Rising fuel prices and transportation costs drove the growth of the AI in logistics and supply chain management market during the historic period. Fuel prices refer to the cost of gasoline, diesel, or other fuels used for transportation, while transportation costs encompass all expenses related to the movement of goods, including fuel, labor, maintenance and logistics. Rising fuel prices and transportation costs have intensified the need for AI in logistics and supply chain management to enhance operational efficiency and reduce expenses. AI technologies enable companies to optimize routes, improve fuel efficiency and automate processes, thereby mitigating the impact of increased transportation costs. For instance, in August 2022, according to the Bureau of Transportation Statistics, a US-based government agency, the price of regular motor gasoline increased by 49% from January to June 2022, while the price of diesel fuel rose by a slightly higher 55%. Additionally, in August 2022, according to Statistics Canada, a Canada-based government agency, the cost of transporting intermodal shipping containers by rail increased by 28.4% in July 2022 compared to the previous year, marking the highest price rise among all Canadian freight rail services, which saw an average increase of 17.7%. Therefore, rising fuel prices and transportation costs drove the AI in logistics and supply chain management market during the historic period.
AI-Driven Order Allocation And Optimization For Enhanced Supply Chain Efficiency
Companies operating in the AI in logistics and supply chain management market are focusing on developing innovative products, such as automated order allocation and optimization software applications, to enhance operational efficiency, reduce fulfillment costs and ensure faster, more accurate order deliveries by intelligently managing resources and workflows. Automated order allocation and optimization software is a system that uses algorithms and real-time data to efficiently assign and prioritize orders across warehouses, fulfillment centers and delivery networks to minimize costs and improve delivery speed. For instance, in December 2024, Logility, a US-based software company, launched two AI-native features that will revolutionize supply chain management. Intelligent Order Response is an AI-driven order allocation and optimization software that actively scans for and resolves demand-supply imbalances, enhancing the order fulfillment process. As part of Logility's Decision Intelligence Platform, this solution eliminates rigid allocation rules and manual processes, automatically and intelligently allocating available inventory to meet demand within specified business goals and timeframes. This AI-first approach optimizes business outcomes by reducing costly expedited logistics fees, minimizing supply chain fines and improving customer satisfaction while offering AI-powered recommendations for supply chain network adjustments through Logility's Continuous Network Optimization.
The global AI in logistics and supply chain management market is fairly fragmented, with a large number of small players in the market. The top ten competitors in the market made up to 17.50% of the total market in 2023.
AI In Logistics And Supply Chain Management Global Market Opportunities And Strategies To 2034 from The Business Research Company provides the strategists; marketers and senior management with the critical information they need to assess the global AI in logistics and supply chain management market as it emerges from the COVID-19 shut down.
Where is the largest and fastest-growing market for AI in logistics and supply chain management? How does the market relate to the overall economy; demography and other similar markets? What forces will shape the market going forward? The AI in logistics and supply chain management market global report from The Business Research Company answers all these questions and many more.
The report covers market characteristics; size and growth; segmentation; regional and country breakdowns; competitive landscape; market shares; trends and strategies for this market. It traces the market's history and forecasts market growth by geography. It places the market within the context of the wider AI in logistics and supply chain management market; and compares it with other markets.