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What is Role of AI and AR in Food Logistics?

What is Role of AI and AR in Food Logistics?

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by Alan Jackson — 1 year ago in Supply Chain Management 4 min. read
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The food supply chain is unlike any other. While electronics, automotive, and consumer goods supply chains promote their products, the food supply chain represents a basic human need — food. As a necessity for all, foods and beverages incorporate a highlighted view of the use of new technologies, including artificial intelligence (AI) and augmented reality (AR), to promote efficiency, This is to reduce disruptions, lower risk and boost customer confidence. Food and beverage supply chain leaders need to know a few things about the ever-increasing role of these technologies and how they will affect the industry in 2020 and beyond.


Setting the Stage: AI and AR Represent Major Growth Areas Within the Food Supply Chain

The use of AI and AR represents significant benefits across the entire global supply chain. According to a recent survey of the growth, trends, and forecasts of the food and beverage market through the use of the results of the AI ​​Domino Study during 2025. AI-guided chatbots help consumers do their shopping more and easily. In fact, 50% of consumers will spend more time in a store or on a company’s website when customers feel that the company provides better customer service. AI chatbots provide this opportunity and can be used to analyze, monitor and influence consumer behavior and purchasing decisions. In particular, artificial intelligence within the food and beverage sector will achieve a 65.3% CAGR between 2020 and 2025.

There is a problem of large-scale deployment of AI and AR in the food and beverage industry. While these technologies can boost efficiency, food and beverage companies have low margins and limited resources. It is impractical for such companies to develop the same investment capital as that available like Google or Amazon. The cost of AI is not cheap, and major technology companies spend more than $ 650 million annually to build such resources. Coupled with consumer demands for faster, more affordable and more easily accessible food options, the use of AI in the food and beverage supply chain may seem impossible.

On the other hand, the advantages of utilizing such technology to fuel more powerful profit margins, realizing that the possible health effects of traceability, enhancing stock management, along with other advantages can help food supply chain leaders make the hard decisions and build the company case for investing in those revolutionary technologies today. Actually, the North American food and drink marketplace owns an AI-adoption speed of about 29.1%, which statistic was from 2017. The business is prepared for change, along with the operational limitations that would contribute to assume AI and AR are unrealistic for its sector form the advantages possible through the introduction of these technologies within this industry.
Also read: Logistics Firms face Covid-19 Challenges in their role as front-line

Major Grocers Look to AI to Boost Profitability and Lower Risk

An international supply chain survey discovered 84 percent of primary distribution chain officers recognize that a”lack of visibility” since the biggest obstacle they face. Comparable to makers, food distribution chains require an extract of AI, analytics, and also blockchain to boost visibility, increase endurance, and lower risks. Improved visibility is vital to reducing disturbance, and coupled with the ability of AI, more visibility may allow replenishment methods to operate by themselves, self-optimizing ordering procedures, linking with consumers to maneuver more foods from shelf to dining table, and also knowing where dangers dwell.

AI-Guided Systems Enable Inventory Optimization of the Food Supply Chain

Fresh foods are debatable for grocers. Fresh foods don’t have a stamped on expiry date, and also variety in seasonal accessibility may influence consumers’ buying decisions. The outcome is exactly the same; merchants throw off about 8 million tons of food annually, many of which result from spoilage prior to the purchase. The financial loss is little better, totaling over $18 billion yearly. The alternative lies in improving stock management of foods that are fresh. AI-guided inventory management methods can leverage point-of-sale (POS) information, data collected from customers’ social networking accounts, advertising data, and other resources to refine new food replenishment and stocking.

AI Helps Companies Predict Demands Based on Various Factors

Going back into the debate on the usage of AI and AR to get stock optimization, the usage of those technologies assist food supply chain leaders improved strategy for requirement. When this involves stock management, in addition, it goes a long way in forecasting potential disruptions, like the recent outbreak of this coronavirus. While the coronavirus signifies a problem for producers, consumers across the world will seem to the food supply series with suspicion. Therefore, when a possible health issue doesn’t necessarily impact the farm-to-fork supply chain at the U.S., U.S. food and drink distribution chains need to ensure disruption-free surgeries and cut off the chance for such health dangers to bring about distrust. In a feeling, this is actually the customer confidence-building facet of AI that unifies with stock optimization. Ongoing improvements within stock management and greater demand planning reduce waste, help supply chain leaders prevent unnecessary dangers, and assure customers of beverage and food safety. AI and AR empower those capacities.
Also read: How Software Developments Will Impact Your Supply Chain in Upcoming Years

Automated Traceability Builds Customer Confidence in the Supply Chain

Grocers across the US experienced a solid increase in criticism and demands for greater transparency over the past couple of decades. The present procedures and technology set up do a bad job of allowing true traceability from farm to fork, and AI combined with blockchain can offer the immutable data necessary and evidence required of the planet’s major food distribution chains to ensure security, quality, and customer confidence.

AR-enabled eyeglasses can help farmworkers identify vegetables and fruits when they’re ripe. The identical technology can connect to blockchain-based systems to make an unchangeable listing of source. AI-guided systems may use the data gathered from this stage to compare food accessibility into incoming grocer and restaurant requests. It’s an ecosystem of automation and continuous improvement.

Final Thoughts on the Food Supply Chain and AI Going Forward in 2020

The food supply chain is under continuous attack from dangers, including the spread of germs and food-borne ailments, doubt concerning climate, political influences, and much more. No matter the leaders of the food distribution chain has to work to mitigate those risks and make sure the planet can still eat elsewhere and well into the future. Using AI and AR, food chains may eventually attain just a tiny piece of calmness of mind and prevent big disruptions. Additionally, AI and AR will continue to progress and extend new opportunities to boost meals supply chain management and accumulative visibility.


Alan Jackson

Alan is content editor manager of The Next Tech. He loves to share his technology knowledge with write blog and article. Besides this, He is fond of reading books, writing short stories, EDM music and football lover.

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