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August 13, 2021

Optimize logistics – How AI-driven solutions can improve your business [Case Study]


Edwin Lisowski

CSO & Co-Founder

Reading time:

5 minutes

The coronavirus pandemic has impacted many industries around the world, including the logistics sector. The rise of online shopping, border closures, increased security checks and the closure of retail outlets have changed the way of optimizing logistics.

The biggest challenge for logistics in 2021 is monitoring the distribution of products throughout the journey. Nevertheless, digitalization ensures the ability to track parcels due to various algorithms, which has a positive effect on logistic cost optimization.

In this article, we want to show you some trends in the logistics and shipping industry in 2021 and our case study.

1. Blockchain

Blockchain technology has been incredibly important for businesses to minimize disruption of the supply chain, optimize logistics and improve customer service.
This trend brings together various lines of business such as shipping lines, carriers and logistics providers on a single platform. Blockchain technology is used to monitor transport throughput and optimize logistics. Furthermore, the trend is allowing logistic businesses to process data efficiently while reducing waste.
Blockchain in logistics

2. Internet of Things

This technology helps to improve communication among all parties involved in the supply chain, which significantly optimizes logistics, time, saves costs, improves route planning.

By implementing IoT devices, companies can improve supply chain transparency, which can help to maximize its assets and return on investment.

3. Green Logistics

Sustainable development has been a driving force for some time. According to the Harvard Business Review, businesses that focus on sustainability grow nearly 6 times faster than those that don’t. [1] With the increased understanding that transport is an important source of greenhouse gas emissions, green logistics is gaining in popularity every year.

Companies using green supply chains are increasing their revenues and customer loyalty through green logistics optimization.
green logistics optimization

Logistics Industry in Statistics: the impact of advanced technologies

  • Besides, in 2023, shipments for logistics robots are projected to reach 259,000 units. (IFR, 2020)
  • By 2025, more than 30% of new heavy trucks will feature a high-level automation technology. (, 2017)
  • By 2022, the IoT in the logistics market will reach $1,050.95 billion. (Mind Aspire Market Research, 2016)
  • The top three challenges faced by providers of third-party logistics services worldwide in 2020 were finding/retaining customers (67%), supply chain disruption (63%), and technology investments (60%). (Statista, 2020)
  • The global logistics market is expected to grow at a CAGR of 3.48% from 2016 to 2022. (Cision PR Newswire, 2020)

logistics statistics
Addepto is an experienced AI consulting company. Our team frequently works with logistics and shipping companies helping them to optimize their supply chain in real-time with implementing advanced technologies in business processes.

Our customer

Our client is a technology company that builds intelligent shipping and logistics solutions using the latest advances in machine learning services and artificial intelligence.The сompany’s mission is to bring shipping and logistics into the digital age and keep logistic cost optimization.

Company’s modern logistics platform helps to optimize shipments and inventory in the real-time. This intelligent logistics platform was created specifically for industrial companies in the metal and mining, aluminium, agricultural and energy industries sourcing raw materials by sea.

It allows teams to efficiently plan and manage their shipping schedule and inventory in one unified solution in real-time. The result is a single source of information from planning to production enabling companies to lower risk and reduce cost throughout the supply chain.


Analytics and reporting layer optimization

The wrong decisions were made due to the lack of multivariate analysis of the most valuable logistic indicators. The company would like to have a versatile tool that helps to monitor important metrics, optimize logistics and to achieve the desired business result in the most efficient way.

Notification’s system for users

The company had difficulties with effectively informing users about the upcoming paid conditions for storing orders. The company expects to receive an advanced notification system that will improve the user experience.

Accelerating interactions between departments

Due to the lack of a notification system, communication between departments was rather poor, which significantly affected the transfer of verified data and information between departments. One of the company’s requirements was to increase the productivity of employees by accelerating interactions between departments.


Embedded analytical and report system based on AI

Implemented AI algorithms provide multivariate analysis of the most valuable logistic indicators: orders carried out on time, transport costs (demurrage, dead freight, cost per ton, oil consumption), inventory cost (paid / free storage), transshipment costs, revenue by customer and period plan and more.

Created notification’s system for enhanced user’s experience

Created notification’s system informs users about the upcoming paid terms of storing orders. It also informs about late orders from factories, as well as changes due to delay in transport (and other relevant notifications).

Accelerated cooperation between departments

The created notification system also contributed to the acceleration of interaction between departments, which helped in the daily work of employees and successfully optimized the business decision-making chain.


benefits of AI
If you have any questions regarding the project, implementation or results just ping us a message and we will be glad to tell you more about benefits
and deployment.


[1] Research: Actually, Consumers Do Buy Sustainable Products. URL: Accessed Aug 12, 2021.


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