Letters

AI and drawbacks for logistics

LETTERS: Amid the chaos of the pandemic, one form of business has been put in a position to continue to thrive — online shopping. Quarantines and the Conditional Movement Control Order (CMCO) prompted many to rely primarily on Internet purchases and delivery.

The simplicity of online shopping means that all we need to be concerned about is the clicking of a few buttons followed by the anticipation of awaiting a parcel.

However, there are a multitude of processes that must occur to make online business transactions possible. The average consumer is unaware of the scope of logistical manoeuvring that is necessary to ensure that our order arrives safely.

The logistics field has been compelled to adapt and evolve at an unprecedented scale in 2020. Nearly everything about the production, transport, storage and delivery of goods has required some form of adjustment or overhaul.

It has been especially interesting to observe how logistics has progressed in incorporating artificial intelligence (AI) systems. Large-scale warehouses, such as the ones belonging to e-commerce titan Amazon, are now able to carry out automated data collection, inventory and other processes.

Warehouse employees who would previously stay on their feet for dozens of hours can now work comfortably from their assigned stations without sacrificing productivity. Voice-activated technology is another logistics system which extends beyond our familiarity with Siri or Google Home.

Voice-directed warehousing systems, such as Lydia Voice, enables smoother communication between businesses and their logistics partners. Voice and speech recognition applications ensure that employees face minimal distractions and inconvenience.

Additionally, instantaneous delivery tracking has also become a vital element of online shopping. The ability to monitor the progress of our every purchase as it travels through the supply chain helps put our mind at ease, particularly when our transactions are made with international vendors. Shipment tracking is typically a built-in feature on online merchant websites and apps.

Finally, blockchain adds another layer of security to Internet retail. A blockchain is basically a transparent digital record of operations accessible to everyone within a designated network. This prevents any member of that blockchain from running scams or hacks.

In the logistics context, this ensures that all confidential data, including our personal information, remains safe throughout the shopping process. These examples illustrate how technology is moulded to keep up with modern business needs.

However, all these benefits come with drawbacks. A major concern in the logistics industry is the potential for automated machines and AI systems to replace a human workforce. While a human employee can experience tiredness, illness or poor concentration, a machine is optimally equipped to execute repetitive and specific tasks efficiently.

Although technology has made our lives so much more convenient in the pandemic era, the prospect of large-scale job losses for logistics employees is distressing and must be taken seriously.

DR VEERA PANDIYAN K.S.

Associate Professor, Universiti Teknologi Mara

PROFESSOR DR JAAFAR PYEMAN

Director of Institute of Business Excellence, Universiti Teknologi Mara


The views expressed in this article are the author's own and do not necessarily reflect those of the New Straits Times

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