Stage 3 – Automatic Planning
Automatic planning is seen in stage 3 and is where many logistics and waste and recycling are now operating. Highly effective logistics systems improve the efficiency of the business and often result in significant margin improvements. The resources are utilized across the whole organization, and not just for the typical 10 trucks which each planner normally can plan for. This is whereby automation can generate at least 10% more savings.
The benefits of this stage are:
- If you are involved in overly complex activities, technology simplifies this for you, maximizing the efficiency of your processes – using intelligent algorithms.
- Your planning and dispatching are driven by sophisticated algorithms rather than costly and inefficient human resources, ensuring driver routes are optimized to save fuel and use fewer physical assets such as vehicles and containers.
- Planners are there to organize some tasks, as well as step in to identify issues and resolve them, leading to reduced salary costs – this can be done using AMCS’ Transport Management System.
- Customers are happier because you can quickly respond when things go wrong or additional service is required, all done as efficiently as possible.
Stage 4 – Predictive Planning
Advanced businesses are already taking advantage of predictive planning technology, including AMCS customers. Our products are designed to enable the use of sensors, for example, to relay data into the AMCS Platform.
At this stage, the logistics planning system now creates its own orders using vendor-managed inventory (VMI). Predictive planning is typically based on a mix of historical data, real-time data, and sensor data. This type of technology is often used in the waste management industry with (underground) containers with fill-level sensors and in the fuel industry for replenishment of petrol stations.
This stage requires:
- Using advanced technologies like machine learning and sensors on customer assets to understand whether a visit is required to transport the customer’s products or waste materials
- Planners are now supervisors who only step in to handle exceptions – the system does all the work
- If your company uses predictive planning, you can implement asset-light business models as you only need the vehicles, containers, etc required for your services rather than the additional capacity to handle the extra work created by inefficiency
- Businesses at this stage benefit from maximized flexibility and the ability to scale quickly in response to new opportunities.
Stage 5 – Fully Automated Logistics
This stage is where we believe many of those companies at Stage 4 are already heading. While we might be some years from fully implementing these measures, some companies are already using ultra-sophisticated technology to optimize their operations as much as technology will currently allow.
When we eventually reach the technological capability to fully implement this stage, businesses will:
- Use self-learning algorithms for continuous improvement of different timings due to traffic, weather, individual customer locations, gates, container types, driver styles, job types, etc.
- Fully automate their businesses using artificial intelligence that will make all decisions for them
- Technology will replace all planners and dispatchers, with staff used for the human touch to maintain business relationships. Eventually, drivers will be replaced with autonomous trucks.
How is AMCS preparing for this future?
AMCS is constantly striving to improve its products with many of our customers already taking advantage of Stage 4 and some early Stage 5 technologies.
We will continue to invest in developing our products to help our customers fully optimize their processes, making their logistics and operations highly efficient, while also supporting reduced cost and higher margins.
Want to learn more about how AMCS can assist your company to make your logistics more efficient? Our team of optimization experts is available to help your business with leveraging next-generation optimization technologies. Don't wait and contact AMCS now.
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