2 August, 2024

AI in Transportation: the Future of Smart Logistics

Posted on 2 August, 202431 July, 2025 by David Priestman

Logistics is the backbone of global commerce, transporting all kinds of goods from manufacturers to consumers all over the world. With the explosion of e-commerce and changing expectations of consumers, there has never been more pressure or greater demand on the supply chain. To function in an increasingly complex world, logistics and transportation need more intelligent and more agile systems, say Oz Moving & Storage.

Artificial intelligence (AI) is revolutionizing each link in the supply chain, creating transportation solutions that are more efficient, more sustainable, and safer than ever. AI is fundamentally changing the landscape of transportation through automation, predictive analytics, and enhanced decision-making processes. Autonomous vehicles, powered by AI, are becoming increasingly common, promising to reduce human error and increase safety and efficiency.

AI can respond to changing conditions, automate tasks, make data-backed decisions, and predict the future, allowing teams to be proactive rather than reactive. By leveraging vast amounts of data, machine learning algorithms can detect patterns and make predictions with far greater accuracy than humans can alone. AI-powered fleet management systems can analyze data from sensors, cameras, databases, and GPS systems in real time to monitor driver behavior, offer recommendations, and detect potential hazards. What’s more, because machine learning is constantly taking in new information, it can adapt and improve over time. This is important, because the world we live in is constantly changing, and we need systems that can keep up.

Making Logistics Smarter with AI

There are some key ways AI can make logistics and transportation smarter:

Route optimization – Route optimization involves using AI algorithms to find the most efficient paths for vehicles to travel from one point to another, considering numerous variables such as traffic conditions, weather, road closures, and delivery windows. AI leverages historical data and real-time inputs to dynamically adjust routes, ensuring the fastest, safest, and most fuel-efficient journeys. This not only reduces delivery times and operational costs but also minimizes environmental impact by lowering emissions. In complex logistics operations, where multiple deliveries are made on a single trip, AI can sequence stops in an optimal order, further enhancing efficiency.

Predictive analytics – AI-driven predictive maintenance systems forecast potential vehicle breakdowns before they occur, minimizing downtime. Predictive analytics in transportation uses AI and machine learning to forecast future trends and events based on historical and real-time data. This can include predicting vehicle maintenance needs, optimizing inventory levels, forecasting demand for public transportation, and anticipating traffic patterns. By accurately predicting these aspects, companies can proactively manage their resources, reducing downtime and costs. For example, predictive maintenance can alert operators to the need for vehicle repairs before a breakdown occurs, significantly reducing unexpected delays and extending the lifespan of the trucks.

Self-driving trucks – Autonomous trucks are set to revolutionize the freight industry by offering safer, more efficient, and cost-effective solutions. Powered by AI, these self-driving trucks can operate without human intervention, navigating roads and obstacles using sensors, cameras, and complex algorithms. They’re designed to operate in various conditions, making long-haul freight transport safer by reducing accidents caused by driver fatigue. Autonomous trucks can also operate 24/7, increasing productivity. The integration of platooning technology, where trucks drive closely together at consistent speeds, further optimizes fuel efficiency and reduces emissions.

Data-driven decision-making – Data-driven decision-making in transportation leverages big data analytics to inform and optimize decisions across the supply chain. AI algorithms analyze vast amounts of data from diverse sources — including vehicle telematics, traffic reports, weather information, and more — to provide insights that human operators might not discern. Managed transportation services, by integrating AI, enhance overall supply chain efficiency through strategic planning and optimized route execution, complementing the data-driven decision-making process. For instance, logistics companies can use data analytics to understand patterns in demand, adjust their operations accordingly, and thus improve asset utilization and customer satisfaction.

Going Green: AI’s Role in Sustainable Transport

AI-powered logistics can help your fleet reach its sustainability goals. Route optimization doesn’t just make your operations faster and less expensive; it can also reduce wasted resources and increase fuel efficiency. This optimization minimizes unnecessary travel, reduces fuel consumption, and lowers greenhouse gas emissions. For fleets that include electric vehicles, AI can also optimize routes based on the availability of charging stations, ensuring that vehicles are charged in the most energy-efficient manner.

AI can predict demand and optimize load consolidation, ensuring that vehicles are fully utilized and reducing the number of trips needed to transport goods. This not only cuts down on fuel usage and emissions but also decreases wear and tear on vehicles, extending their lifespan and reducing the need for new vehicles and parts manufacturing.

Challenges and Opportunities in Smart Logistics

Despite its potential, the integration of AI into transportation faces several challenges. Privacy and security concerns, particularly related to data collection and processing, are paramount.
The demand for secure, AI-driven logistics solutions is spurring innovation in cybersecurity and data protection. In order to implement AI-driven solutions, transportation companies may need to update outdated technologies and invest in replacements for legacy systems. This transition can come with some upfront costs and a learning curve. AI and automation are poised to transform the jobs that transportation and logistics workers perform. As technology gets smarter, employees in this industry will need to learn new skills as their roles adapt to the changing landscape.

The Future: AI Solutions in Transportation

Looking forward, the role of AI in transportation is set to deepen, with emerging technologies offering even more sophisticated solutions. The development of AI-powered infrastructure, such as smart roads and IoT-enabled ports, will further enhance efficiency and safety. Additionally, as AI technologies mature, their integration with other cutting-edge technologies like blockchain and 5G is expected to unlock new possibilities for smart logistics.

AI works in the transportation and logistics sector by analyzing vast datasets to understand patterns, making predictive analyses, optimizing operations through intelligent algorithms, enabling autonomous decision-making, and continuously learning to improve system efficiency and reliability. The combination of these capabilities allows AI to address complex challenges in the industry.

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Lampenwelt Brings Light into the Supply Chain

Posted on 2 August, 202424 July, 2025 by Keith McKinley

When it comes to ordering lights online, many consumers make the final click at Lampenwelt. The e-commerce specialist, which is part of the LUQOM Group, recently started using the SCM software OSCA to bring transparency to the supply chain. As a result lead times and the workload for orders have been significantly.

“In addition to simple user guidance, Setlog convinces with its fast implementation,” says Patrick Keyser, Director Demand & Order Management, Global Forwarding, Lampenwelt GmbH. Anyone moving into a new home has a lot to do. Packing, moving, unpacking, assembling furniture and then lots of paperwork. Often there are only temporary light bulbs hanging from the ceiling in the new apartment. Replacing these is also on the to-do list. In the past, people would rush to large furniture stores and often spend half a Saturday in the lamp department to find a new lamp and the right light bulb for each room. But in the age of the Internet, many consumers do away with such time-consuming activities: Instead, they shop for their desired lamps online from the comfort of their new sofa.

For more than two decades, Lampenwelt from the Sauerland region of Germany has been one of the largest and most successful platforms for the sale of lamps of all price ranges. The company sells its products in 27 countries via various domains, including lights.co.uk in the UK and luminaire.fr in France. The online pure player, which is part of the Berlin-based LUQOM Group founded in 2017, offers a range of around 450 brands and more than 60,000 products. Lampenwelt is the nucleus of LUQOM. The LUQOM Group was extended by the strategic acquisition of Lampemesteren from Denmark in 2021 and the acquisition of the QLF Group in 2019, the online market leader in Benelux.

The associated sales growth also brought challenges – in all three of LUQOM’s business divisions: Services, brands including own brands and the e-commerce business. “Without a cutting-edge IT landscape, companies in the consumer goods sector can no longer be successful today,” emphasizes Patrick Keyser, Director Demand & Order Management, Global Forwarding at Lampenwelt. The retail expert has years of experience in digitalization in the fashion sector. Since 2022, he has been transferring his knowledge to the lighting and smart home products sector with the help of his team. His goal: to bring light into the darkness of the supply chain.

Darkness is an exaggeration, of course. Until now, the ordering process had been handled via email to the group’s branch in Asia, LUQOM Asia. The employees took care of purchasing from the Asian suppliers. “On one hand, the effort involved via Excel and email is huge. On the other hand, changes in production or delivery times pose challenges because the supply chain is not transparent,” reports Keyser.

He therefore tackled the project ‘introduction of SCM software’ quickly. From his previous position, he had fond memories of the cloud-based tool OSCA from the Bochum-based software company Setlog: “In addition to simple user guidance, the provider convinces with its quick implementation,” emphasizes Keyser. After consultations with Setlog Managing Director Ralf Duester and an analysis of other providers, the contract was signed in August 2022 and the project launched immediately. The first project milestone by December was to connect and train LUQOM Asia (30 employees) and all Chinese manufacturers of Lampenwelt’s own brands to OSCA SCM. The same applied for the two existing logistics partners. In a second step, the remaining suppliers from Europe and other countries – such as Turkey – will be integrated into the system so that OSCA SCM is used by more than 200 suppliers.

• OSCA SCM contains four service areas for LUQOM Group:
• Delivery Planning & Dialogues: This is where the purchase orders are confirmed by the suppliers.
• Booking & Shipment: This involves the suppliers’ transport booking process with the freight forwarders, the storage of shipment data (manually or via TMS connection) by the logistics service providers and the upload of mandatory documents.
• Delivery to DC: This is where the delivery process at the warehouse is controlled. The forwarder and warehouse employees coordinate the time of goods delivery.
• Reporting: Here, the system offers comprehensive reporting and analysis functions.

According to Keyser, the software was implemented quickly – just as planned. Training in German, English and Chinese also took just two weeks. Some employees and partners initially found it a little difficult to get used to the new workflows. “But anyone who recognizes the advantages also understands the change. OSCA brings transparency to the supply chain. There is now only one central system for communication and document exchange for everyone involved,” says Keyser. For him, there is no alternative to a ‘digital twin of the supply chain’.

Whether ‘Lindby’ ceiling lights or ‘Arcchio’ wall lights: Five employees in Keyser´s team can already manage 2.5 million orders per year via OSCA in the first stage of expansion. The products from Lampenwelt’s own brand are delivered via two logistics service providers to a multi-user warehouse with a total area of 45,000 square meters near Fulda, which is managed by a contract logistics provider, as well as to the company’s own distribution center, which is also located in Hesse.

Although OSCA has only been in operation since December 2022 and the connection of the remaining suppliers is yet to follow, SCM expert Keyser is already excited by two results: Lead times have been reduced by around 15 percent. The company has achieved even better results when it comes to reducing the amount of work involved in ordering lamps and the like: Keyser was able to measure around 20 percent. He anticipates a reduction of up to 50 percent – after the end of the second expansion phase. “The solution has also been well received by the retail specialists in Asia. Our Asian colleagues also benefit from the centralized solution in terms of data exchange and communication. A large number of emails are now a thing of the past,” says Ludger Tillmann, General Manager of LUQOM Asia.

Although the current project is not yet finished, Keyser is already working on others – the connection of other subsidiaries such as QLF and Lampemesteren to OSCA. The interfaces will be implemented shortly. Light should therefore soon be shed on the other supply chains.

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Yodel Announces New Ownership Structure

Posted on 2 August, 20247 August, 2025 by David Priestman

Independent parcel carrier Yodel has announced an £85m funding package that will enable the company to invest in plans to further automate and modernise the business over the next three years. This includes initiatives that will be rolled out in response to the acceleration of consumer Out of Home (OOH) deliveries and a material increase in parcel volumes through this fast-growing channel.

Yodel will continue to be led by CEO Mike Hancox, who took control of the company in June 2024. Hancox will retain a significant shareholding following the new funding, and will work with the existing senior management team and strategic business partners, including PayPoint plc, who made a strategic investment of £10m in June 2024, and operate the leading OOH network, Collect+, in over 12,000 locations across the UK.

Building on solid growth

Over the last year, Yodel has experienced growth with increased volumes supported by multiple new contract wins and renewals with some of the biggest and fastest growing ecommerce businesses serving the UK. This growth has been supported by strong demand for its Out-of-Home operations and the booming customer-to-customer market (C2C), with Yodel seeing a 200% uptick in C2C volumes in the last two years.

To meet this demand, the business has continued to make significant investments in its network and infrastructure including a brand-new 162,000 sq. ft. depot in Huyton, doubling Yodel’s capacity in the North West. The business also continues to make multi-million pound investments in its fleet.

Mike Hancox, CEO of Yodel, said: “I am delighted that we have secured a funding package that gives Yodel financial security into the future and the ability to continue investing in the long-term success of the business. I have to say thank you to my colleagues and our clients, who have been very supportive whilst Yodel has gone through a change of ownership, after many years with the Barclay family. We are excited to develop our Out of Home delivery offer and grateful for the support of the investors who will make this possible.”

This latest investment is supported by a consortium of investors including PayPoint plc. and IGF (Independent Growth Finance).