Leveraging AI in Freight & Logistics: A Comprehensive Overview (Part 2 )

 Automate invoice management and enhance supply chain visibility in freight and logistics with AI.

Welcome to the second part of our series to understand and leverage AI for logistics. In the previous part, we explored the brilliance of AI in transportation and logistics. It also highlighted how AI reshapes the way businesses optimize freight and logistics. However, it's still just the tip of the iceberg. The potential of AI goes much deeper, and that's exactly what will be discussed in this article.

We'll see how AI transforms invoice management from labor-intensive to streamlined managerial tasks. We'll also discuss how AI broadens the scope of supply chain visibility to reduce bottlenecks, sharper insights, and significantly reduce paperwork. It may seem challenging, but with AI, it's achievable. Let's dive in and see how.

AI in invoice management: Intelligent audits and error-free payment

Do you find invoice management a hassle? You're not alone—even seasoned freight and logistics veterans can relate.

Managing invoices is important as they direct the flow of money, but it also involves a heavy burden of complex and sensitive paperwork.

 How does AI help? Well, it brings in intelligence and removes you from the operational equation. 
In simple terms, yes, this means less paperwork for you.

 Here's how AI aids you in the invoice management process,

• Automated data extraction: No manual mistakes

Remember when data entry meant having someone squint at rows of numbers, trying not to make a mistake? AI puts that to an end. 

AI-powered tools can extract everything from supplier names to invoice numbers with laser precision. It also executes sensitive tasks like extracting payment terms and due dates in a fraction of the time.

Supply chain AI experts like Pando take it further by integrating AI into scanning machines. This lets your team ditch the manual work and focus only on anomalies.

• Invoice verification: Fast and error-free 

Manual invoice processing gets notoriously time-consuming, largely due to frequent invoice errors. In fact, 47% of accounting controllers find minimizing errors as their biggest challenge in accounts payable. This statistic underscores the importance of invoice verification in business to avoid costly mistakes.

 In this regard, AI algorithms are super helpful. They can quickly analyze data sets to detect discrepancies across purchase orders, payment terms, or shipment weight. There are dedicated AI-driven freight auditing solutions to streamline the invoice verification process. 

A standout feature of AI in freight auditing is its four-way matching of commercial details and goods receipts. It instantly cross-checks contracted rates, purchase orders, proof of delivery, and submitted invoices. This leads to spontaneous and real-time flagging of errors or missing data. 

AI also brings powerful fraud detection capabilities. Attempts at overcharging through unnecessary fees or double billing are swiftly blocked. Automated freight auditing flags and rejects such invoices. This comprehensive response system also keeps dispute management and conflict resolution seamless.

Experts like Pando also track carrier invoice accuracy rates and accelerate approvals at lightning speed. 

Even the German personal care brand Nivea has benefited from AI-powered invoice automation by Pando Fulfilment Cloud. "Pando helps in 100% digitization of documentation for faster, error-free Invoices," says one of Nivea's senior managers from the logistics excellence department.

• Payment optimization: make every dollar count

Who doesn't love early payments? While AI powers audits, their ML algorithms also help in facilitating timely payments. 

When leveraged correctly, AI payment solutions can help your business spot trends, suggest better payment terms, and maintain healthy cash flow. 

Advanced supply chain fulfilment cloud solutions like Pando use AI to automate payments to carriers and suppliers so that you never miss a deadline. Using AI, you can also analyze payment data in your ERP system in real-time.

Simply put, that's how AI builds rapport and keeps you on the financial front foot.

AI in supply chain visibility at every step of the process

As per a recent Gartner report, 79% of industry professionals face issues with their supply chain visibility.

In this regard, AI can help achieve real-time visibility into every step of your supply chain process.

For instance, with AI, you can keep a tap on your entire supply chain, from raw materials to finished products. That said, you can identify any delivery bottlenecks in real time and address them to avoid unwanted process delays down the line. 

Moreover, when connected with business intelligence and data analytics, AI ensures you don't have to guess updates or make predictions based on your gut.

 Here's how this technology drives visibility in freight and logistics.

1. Real-time tracking 

AI-driven real-time tracking can give you shipping updates at every stage of your journey. 
No more endless phone calls or vague "in transit" status updates.
For instance, you can leverage AI-powered transportation management systems (TMS), integrate with carriers and visualize minute-by-minute updates. If your shipment moves, you'll find out where from and where to—all in real-time. 
You'll have answers for your customers that aren't "We're looking into it." 

2. Anomaly detection: Because not everything goes smoothly

Let's be honest—freight and logistics operations are rarely smooth sailing. Delays, route changes, and unexpected hiccups are part of the package.

But managing them would be much simpler with a heads-up. 

AI can fetch you live updates regarding any issue so that you can instantly detect anomalies. You see unusual developments at any stage of your freight and logistics in real time. So, whether it's a detour or delay, you stay prepared with prompt strategies to handle every situation.

3. AI in risk management: Getting proactive about protection 

AI can do more than just identify supplier risks and measure cost fluctuations in freight and logistics.

AI can help you mitigate risks that trigger supply chain disruptions shortly. These could be geopolitical sparks (e.g., the US-China trade war) or contingency plan flaws (e.g., unmapped causes for shortages). It could also spot near misses in ERP systems.

 Such knowledge supplements help you prepare contingency plans and build resilience in advance to mitigate potential supply chain risks with ease.

Embrace AI for supply chain efficiency with Pando

AI is aiding the supply chain industry in addressing critical challenges like never before. However, growing with industry best practices requires having an ideal AI partner.

In this regard, Pando can be your co-pilot to increase the efficiency, visibility, agility, and overall performance of your supply chain with AI. For instance, Pando uses AI for procurement automation to optimize 3-5% cost and realize 90% productivity gains across RFQ to contracting. 

If you want to add similar intelligence, resilience, and strategic excellence to your freight and logistics, try Pando.

To learn more about the Pando Fulfilment Cloud, Book a demo today!