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1. PROJECT REPORT
ON
“ARTIFICIAL INTELLIGENCE TRANSFORMING LOGISTICS
INDUSTRY AND SUPPLY CHAIN MANAGEMENT”
BY
PRITY KUMARI SHARMA
……………..
UNDER SUPERVISION OF:
……………
Submitted in partial fulfillment of the requirements for qualifying
MBA- LSCM(Logistics and Supply Chain Management)
UNIVERSITY OF PETROLEUM & ENERGY STUDIES, DEHRADUN
2022

2. “ARTIFICIAL INTELLIGENCE
TRANSFORMING LOGISTICS INDUSTRY
AND SUPPLY CHAIN MANAGEMENT”

3. ABSTRACT
There are always many perceptions before adopting a new technology or around innovations. Most companies agree
that they like the concept of AI but hesitant in adopting it. An important question is what will happen to all the
mundane tasks performed by supply chain professionals. The answer is AI can handle these tasks more efficiently in
much shorter time put more time back to the supply chain professionals. This gives opportunity to human resources
to focus more on strategic thinking, data driven decision making and take up the roles which will make their jobs
both challenging and enriched, as a professional. The objectives of the study is Integration of AI demand forecasting
in Supply Chain and logistics industries: One of the challenges for retailers, is how to optimize localized or
centralized warehouses. Relying on centralized storage solely is risky and understocking on sold out items is another
factor. Using local storage is an expensive alternative. This is one of the main reason to maintain an adequate
amount of stock and how to use AI for production optimization of Supply chain process: Production optimization is
an important yet common problem in many industries. In context, optimization is a very important technique that
makes production line effective and efficient.
This study covers broadly from logistics activities to transportation systems and attempts to determine the role of
transportation in logistics systems through extensive review.
This study explains how the efficient transportation system with the effectively implementation of the supply chain
network can help at the OmTrans Logistics Ltd. Transportation occupies one-third of the amount in the logistics
costs and transportation systems influence the performance of logistics system hugely. Transporting is required in
the whole production procedures, from manufacturing to delivery to the final consumers and returns. Only a good
coordination between each component would bring the benefits to a maximum.

4. INTRODUCTION
Due to the pandemic condition, supply chain management has evolved into a crucial strategic opportunity to
maintain enterprises competitiveness. Transport supply chains have been disrupted as a result of the pandemic. One
of the emerging digital technologies, artificial intelligence is revolutionizing supply chain management.
A large amount of data is processed by artificial intelligence in a matter of minutes and with the aid of automated
technology, insightful information is then presented to an organization. Having a successful supply chain is vital for
companies, customers and the government. Integration of AI with Supply chain management is essential for
facilitating decision-making and improving efficiency as well as for improved resource usage.
All sizes of businesses have benefited from its assistance in improving their supply chain decisions. The term "AI"
refers to a broad range of technology that can recognise trends, predict customer needs, coordinate delivery and
make the best decisions and take the best possible actions.
Businesses from all industries are embracing new technologies and AI computing methods including deep learning,
machine learning and natural language processing. Without us even noticing it these technologies are slowly
eclipsing other aspects of our daily life. In several areas such as supply chains and logistics AI has emerged as the
most crucial technology.
LOGISTICS AND SUPPLY CHAIN MANAGEMENT: THE IMPACT OFAI
In general, humans excel at solving extremely complicated issues better than machines. For smaller, more repetitive
operations, automation can, however, significantly save time spent and result in more accurate results.
Artificial intelligence (AI) which simulates human intelligence to carry out tasks, is one of the best automation
techniques available today. Every day, this quickly developing technology gets smarter and more widely available.
Widespread AI deployment in the logistics sector is gradually turning into a must to maintain competitiveness.
.

5. COMPANY PROFILE
One of India's most forward-thinking logistics and freight forwarding businesses, Om Trans strives to offer its
clients the best logistical solutions.
Om Trans, which has over 21 years of expertise in the logistics sector, has distinguished itself as one of the top
logistic and freight forwarding firms in India.
The demand for automobile export and import increased as a result of changes and developments in the global
market environment.
OMTRANS LOGISTICS is dedicated to ensuring complete client satisfaction by offering affordable and creative
logistics solutions and saving expenses. The company has more than 21 years of business experience.
OmTrans has created a whole suite of services to meet the demands of logistics and transportation, including
warehousing, distribution and brokerage services as well as services for air, ocean and land transportation.
Infrastructure
OmTrans has offices and warehouse facilities all over India, including open and closed space with cutting-edge
facilities in all of India's main cities. Through its affiliate company, the company has more than 20 million square
feet (Sq. Ft.) of warehouse and storage space accessible nationwide. 3000+ fleets are operating throughout India
through its affiliated company.
Networking
Through its own offices or partners, OmTrans is present in more than 80 countries.
OmTrans has exclusive and non-exclusive agreements with numerous global freight forwarding and transportation
firms.
Global Services
Omtrans provides the following range of services to widely distributed Indian corporations and multinationals with a
global market.

6. COMPANY PROFILE
• Worldwide door-to-door pickup and delivery.
• Worldwide facilities for warehousing.
• Project Management
• Air/Sea cargo consolidation.
• Export and import customs broker services
• Packing of machinery and other exim cargo
The following standards have been embraced as part of OM TRANS LOGISTICS LIMITED's implementation of an
integrated management system:
A QMS compliant with ISO 9001:2015:
The best services are what we sincerely commit to giving to our clients. Our management system's effectiveness will
always be improved and we'll work tirelessly to meet and surpass client expectations in whatever we do. Our
organisation is always striving for excellence, quality, innovation and constant progress.
Environmental Management System according to ISO 14001:2015:
We commit to doing actions that will help safeguard our natural resources and protect the environment.
An ISO 45001:2018 Occupational Health and Safety Management System includes the following:
We guarantee that our workplaces will be safe and healthy by adhering to all relevant legal, regulatory and other
standards.
ISO 37001:2016 Anti-Bribery Management System: -
In keeping with this pledge, we agreed to do legal, moral and honourable business. Corruption and bribery are
unacceptable and will not be tolerated in any form. When it comes to our organisation, we abide with anti-bribery
regulations.

7. OBJECTIVES
• Study of Integration of AI demand forecasting in Supply Chain and logistics industries : One of the challenge
for retailers, is how to optimize localized or centralized warehouses. Relying on centralized storage solely is
risky and understocking on sold out items is another factor. Using local storage is an expensive alternative. This
is one of the main reason to maintain an adequate amount of stock.
• How to use AI for production optimization of Supply chain process: Production optimization is an important yet
common problem in many industries. In context, optimization is a very important technique that makes
production line effective and efficient.

8. REVIEW OF LITERATURE
The research study examined various deployment scenarios for artificial intelligence in various fields. Predictive
analytics, effective warehouses, chat bots and GPS systems all have an impact on an organization's growth and
various expenditures associated with them. Several methods related to AI that can improve performance include:
Accurate Demand Forecasting: In a warehouse, it's crucial to maintain the proper flow of goods coming in and
going out. Inventory-related tasks have a significant likelihood of mistake. With the help of AI, data trends may be
found and predictive analysis can be used to quickly and cost-effectively take preventative action.
Efficient Warehouses: By streamlining complex processes, automation helps make warehouses more effective at
managing daily tasks.
Delivery on time: In the logistics sector, distance and time are the two most important considerations. By
streamlining the routes, eliminating operational snags and exceeding customer expectations, AI can speed up on-
time delivery processes.
Better Customer Support: AI helps in sustaining relationships with customers as well. Using chatbots, consumers
and logistics suppliers can establish unique relationships. Real-time services may be delivered to customers more
quickly and easily. Because of artificial intelligence (AI), chatbots can assess problems, find solutions and draw
lessons from them to improve consumer experiences.
Kumar and others (2020) Over the years, the world has been shifting toward a digital future and Industry 4.0
technologies are now seen as the direction of that future.
Soni et al., Dirican, (2015), Canhoto and Clear (2020) and (2020) AI has a growing and broader presence in
academic discourse, which has had an impact on many subjects, including business research. As a result, AI is now
studied from a more comprehensive standpoint, with SCM being recognised as one of the industries most likely to
benefit from AI applications.
Kohtam aki and others (2019) To increase their functionality, many businesses are transitioning from remote
monitoring to control, optimization and ultimately sophisticated autonomous AI-based systems.

9. REVIEW OF LITERATURE
Lyall and others (2018) Some jobs may be automated as a result of the digitalization of processes, including their
work instructions, allowing a computer to complete the work in place of a human. Some even contend that the
supply chain function is soon becoming outdated because of new digital tools that enable insight into real-time
supply chain data and powerful algorithms capable of processing this data to guide decision-making.
AI is also applicable to the auditing and selection of sustainable suppliers. Visibility across a company's whole
supply chain is a common challenge for big, international companies. A successful "manual" auditing effort is also
impossible given the sheer number of participants in modern supply chains. With the help of data analytics, it is
now possible to obtain vast volumes of information about the many sustainability aspects of a company's suppliers,
their suppliers' suppliers and so on. It is difficult to process enormous amounts of data effectively, though. Leading
providers in the environmental quality management sector, such EcoVadis and Intelex, have thus recently begun to
provide AI solutions as a way to extract actionable insights from these enormous data sets, such as supplier selection
and development based on sustainable development standards. Analysis of previous orders can also be used to
optimise picking positions in the warehouse. Picking efficiency can be improved by placing commonly purchased
items close to one another. Depending on the combination of products that are frequently included in the same order,
the same study may be useful for optimising service levels per order line.
However, the veracity of the data determines whether or not all of these possibilities succeed. Any effort to adopt
makes it difficult because baddata leads to poor decision-making (garbage in, garbage out). The master data must be
of high quality to be effective. In this, integrated data systems are made to look quite good.
Dirican, 1990; Schutzer (2015) Artificial intelligence (AI), which is characterised as a machine's capacity to
interact with humans and mimic their talents, is one of these technologies that is most well-known (along with
blockchain, IoT, cloud computing, etc.). Through the use of AI, problems can be solved more quickly, with greater
precision and with more inputs.

10. RESEARCH METHODOLOGY
METHODOLOGY ADOPTED: - This research is aimed toward studying Artificial Intelligence Transforming
Logistics Industry and Supply Chain Management.
RESEARCH DESIGN: -This analysis used a research design that is both descriptive and exploratory
DATA COLLECTION METHODS:
The data was gathered using both main and secondary data collection methods..
PRIMARY DATA: Most of the knowledge was gathered through primary sources. The methods that were wont to
collect primary data are:
a)Questionnaire
b)Interview
SECONDARY DATA:
The secondary data was collected through:
a)Text Book
b)Magazines
c)Journals
d)Internet
SAMPLE SIZE: 50
UNIVERSE: The term “universe“ refers to all of the units that make up the field of study. Employees of OmTrans
Logistics Ltd were chosen at random to construct our universes..
CONVENIENT SAMPLING: It's that sort of sampling where the researcher selects the sample consistent with his
or her convenience. The sampling technique was utilized in our study is Non-Probabilistic Convenient Sampling.
SAMPLING TECHNIQUE: The sampling technique was utilized in our study is Non-Probabilistic Convenient
Sampling.
SAMPLING UNIT: The sampling frame is that the representation of the weather of the target population. The
sampling unit of our study was in Hyderabad.

11. DATAANALYSIS & INTERPRETATION
1. Working Experience in OmTrans Logistics Ltd.
Analysis: In the above pie chart show that 60% of the respondents said that they have been working experience in
OmTrans Logistics Ltd from below 1 year. 24% of the respondents said from 1-2 years, 12% of the respondents said from
2-4 years and 4% of the respondents said from above 4 years..
.

12. DATAANALYSIS & INTERPRETATION
2. Pickup, delivery and return solutions provided by OmTrans Logistics Ltd, for e-Commerce
business in India and cost-effective services are satisfactory
Analysis: In the pie chart show above, 60% of the respondents are highly agree, 20% of the respondents are agree with the
Pickup, delivery and return solutions provided by OmTrans Logistics Ltd for e-Commerce business in India and cost-
effective services are satisfactory. 4% of the respondents are disagree and 10% of the respondents are highly disagree with
the same.
.

13. DATAANALYSIS & INTERPRETATION
 3. Do you recognize these Logistic Service Providers (LSPs) concepts in your company?.
Analysis: In the above pie chart show that 32% of the respondents said that they recognize third Party Logistics (3PL)
Service Providers concepts in their company. 28% of the respondents said Fourth Party Logistics (4PL) and 16% of
the respondents said nothing with the same.

14. DATAANALYSIS & INTERPRETATION
4. Digital transformation in the transport, logistics and supply chain industry has opened new doors
to efficiently manage operations and schedules.
.
Analysis: In the pie chart show above, 34% of the respondents are highly agree with digital transformation in the
transport, logistics, and supply chain industry has opened new doors to efficiently manage operations and schedules,
24% of respondents are agree with that, 20% of respondents are neutral, 12% of respondents are disagree and 10% of
respondents are highly disagree with that.

15. DATAANALYSIS & INTERPRETATION
5. AI can help in streamlining various processes of supply chain and logistics .
Analysis: In the pie chart show above, 40% of the respondents are highly agree with AI can help in streamlining
various processes of supply chain and logistics, 28% of respondents are agree, 14% of respondents are neutral, 10% of
respondents are disagree with AI can help in streamlining various processes of supply chain and logistics and 8% of
respondents are highly disagree with that.

16. DATAANALYSIS & INTERPRETATION
6. AI offers logistics and supply chain operators contextual information which can be used to manage
inventory better.
Analysis: In the pie chart show above, 44% of the respondents are highly agree with AI offers logistics and supply
chain operators contextual information which can be used to manage inventory better. 20% of respondents are agree,
16% of respondents are neutral, 12% of respondents are disagree and 8% of respondents are highly disagree with that. .

17. FINDINGS
 60% of the respondents said that they have been working experience in OmTrans Logistics Ltd from below 1 year. 24% of the
respondents said from 1-2 years, 12% of the respondents said from 2-4 years and 4% of the respondents said from above 4 years.
 60% of the respondents are highly agree, 20% of the respondents are agree with the Pickup, delivery and return solutions
provided by OmTrans Logistics Ltd for e-Commerce business in India and cost-effective services are satisfactory. 4% of the
respondents are disagree and 10% of the respondents are highly disagree with the same.
 32% of the respondents said that they recognize third Party Logistics (3PL) Service Providers concepts in their company. 28% of
the respondents said Fourth Party Logistics (4PL) and 16% of the respondents said nothing with the same.
 34% of the respondents are highly agree with digital transformation in the transport, logistics, and supply chain industry has
opened new doors to efficiently manage operations and schedules, 24% of respondents are agree with that, 20% of respondents
are neutral, 12% of respondents are disagree and 10% of respondents are highly disagree with that.
 40% of the respondents are highly agree with AI can help in streamlining various processes of supply chain and logistics, 28% of
respondents are agree, 14% of respondents are neutral, 10% of respondents are disagree with AI can help in streamlining various
processes of supply chain and logistics and 8% of respondents are highly disagree with that.
 44% of the respondents are highly agree with AI offers logistics and supply chain operators contextual information which can be
used to manage inventory better. 20% of respondents are agree, 16% of respondents are neutral, 12% of respondents are disagree
and 8% of respondents are highly disagree with that.
 48% of the respondents are highly agree, 30% of the respondents are agree with the AI in supply chain management analyses
performance and predicts new issues and possibilities in the same area, 14% of the respondents are neutral and 2% of the
respondents are highly disagree with the same.
 32% of the respondents are highly agree, 28% of the respondents are agree with the Timely delivery of shipments plays an
important role in logistics system at OmTrans Logistics Ltd. 20% of the respondents are neutral and 4% of the respondents are
highly disagree with the same
 50% of the respondents are highly agree, 20% of the respondents are agree with the purpose of logistic planning process is to
attain maximum work in the least possible time. At the same time, the planning should aim at maximizing the profits. 12% of the
respondents are neutral and 10% of the respondents are highly disagree with the same.
 60% of the respondents are highly agree with the main objective of OmTrans Logistics Ltd is defined as the right products in the
right place at the right time at the right cost and in the right condition. 6% of the respondents are neutral and 10% of the
respondents are highly disagree with the same.
 50% of the respondents are highly agree with the AI can also help in improving customer experience by offering automated
support services, 20% of the respondents are agree, 12% of the respondents are neutral and 8% of the respondents are highly
disagree with the same.

18. RECOMMENDATIONS
Adopt a business operating model and demand-driven planning approach that are based on real-time demand data
and demand shaping.
Fast planning and integrated execution will help you create a flexible and agile supply chain. Superior visibility,
improved collaboration across the whole value chain, including dependable and predictable sourcing and supply,
production, transportation, warehousing, and distribution, as well as expedited decision-making with better analytics
and support are the outcomes.
For supply, production, and sustainability optimization, improve product designs and management to speed up
lucrative innovation. For an advantage over the competition, innovation is essential. Innovation doesn't, however,
occur in a vacuum. Products need to be made at the ideal moment, location, and cost if they are to succeed. A
product's success or failure can be determined by choices made in the early stages of development. Supply,
manufacture, and supply chain activities all need to be optimised in designs. To keep the end-to-end business in
balance, the genuine expenses of delivery must be precisely recorded and assessed.

19. CONCLUSION AND SCOPE
This study concluded that the logistics and supply chain sector will be improved as a result of the adoption of
AI. The time has come to use this technology for your company if you are new to it. In order to evaluate the role of AI in
transportation and logistics systems, a thorough review is conducted in this study, which spans a wide range of topics from
smart logistics activities to transportation systems.
This study illustrates how the OmTrans Logistics Ltd. can benefit from an excellent AI supply chain network and a
transportation system that is both reliable and efficient. One-third of the cost of logistics is spent on transportation, and the
performance of the logistics system is greatly impacted by the effectiveness of transportation systems. Throughout the
whole production process, from manufacturing to distribution to ultimate consumers and returns, transportation is
necessary. To maximise the benefits, each component must work in harmony with the others. This study makes
improvements by:
• The growth of logistics
• Sectors associated with transportation based on historical analysis
• Relationships between transportation and logistics
• Advantages of transportation to logistics activities and vice versa
• Key logistics principles and operations
• Potential future logistics system development
Review of logistics development, characteristics of various transport operations in logistics activities, applications of
logistics in many industries, city logistics, future directions in logistics development, and its interaction with transportation
systems are the primary topics covered in this study. In conclusion, transportation and logistics are rather important. (1) In
current society's operations, the logistics system is becoming more and more significant. (2) Logistics management relies
on transportation to carry out its operations, and a strong logistics system may also contribute to a better traffic situation
and the advancement of transportation. (3) Since a logistics system's transportation component has the highest cost of all
the linked components, increasing transport effectiveness may have an impact on how well a logistics system functions
as a whole.

20. LIMITATIONS
The limitations that the study has:-
• The research size is not substantial.
• •The scarcity of time from the respondents’ side.
• Only one area is surveyed or covered.
• The professionals have provided some biased information.
• It doesn’t represent the general view of every field.

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