AI in logistics: How is it shaping our industry?

Technology-01.jpeg.jpg

This month, Sam Fagan shares his insights on how AI is shaping our supply chain…

Long gone are the days of playfully debating if robots might one day take over. In 2024, the presence of artificial intelligence (AI) in our daily lives is undeniable, and its impact on our world is profound. 

The simple reality is that AI isn’t just coming; it’s already here.

But at Fagan & Whalley, one question has caught our attention this month. In an industry as vital as ours, which has conventionally been characterised by a rich history of expertise and tradition, is the supply chain management sector truly prepared to embrace the rise of AI in logistics? 

Let’s take a look…

What is AI?

AI is defined as a branch of computer science that is dedicated to creating systems capable of performing tasks that typically require human intelligence. Examples of such tasks include interpreting complex data, recognising patterns, learning from experiences and making decisions. 

AI in Logistics: What does that look like?

Having gained a basic understanding of the broader concept of AI, it’s crucial to appreciate its real-world impact on our daily lives. 

The last few years have been transformative for much of the logistics industry. 

With the growing rise of new technologies, new ways of working and new expectations – many logistics companies have been driven to rethink the way we operate. With that said, there is one specific area where the impact of AI has been particularly pronounced: vehicle telematics.

AI in Logistics: Vehicle telematics

It could be argued that telematics is the backbone of modern logistics. 

Telematics offers us real-time tracking and monitoring of vehicles and driver behaviours, – essentially, giveing us greater insight into our fleet and operations. 

While telematics has existed for well over a decade, the field is constantly evolving as technology improves and develops. In the last couple of years, AI has supercharged the results gained from telematics by allowing companies to create safer roads, improve fuel efficiencies, predict vehicle maintenance, increase route optimisation, reduce operational costs and much more. 

Let’s take a closer look at how AI is helping logistics companies evolve…

Increased driver safety

Firstly, a critical benefit of vehicle telematics is increased driver safety. Specifically, the implementation of advanced camera systems that leverage AI to detect driver distractions is a potentially transformative safety feature. 

These intelligent systems are designed to monitor for signs of distraction or fatigue and can issue timely nudges or alerts to drivers, reminding them to refocus or take necessary breaks. 

This proactive approach not only enhances the safety of drivers themselves but also contributes to the overall safety of our roads.

Improved customer service through vehicle tracking

Secondly, the integration of AI in logistics, particularly through vehicle tracking, significantly enhances customer service and customer satisfaction. Telematics means logistics companies can provide customers with real-time updates about the location of their goods, expected delivery times and any potential delays. 

In this day and age, this transparency isn’t a novelty or an ‘extra’ service offering – it’s simply the bare minimum expectation. We live in a world where instant information is expected at our fingertips, and this extends to the logistics industry.

For many of our clients, the ability to track shipments builds trust with their consumers. We know from data that when consumers have access to the progress of their delivery, it reduces uncertainty and anxiety – particularly for time-sensitive or high-value shipments. While this level of service was once a luxury, it is now a competitive necessity in the logistics industry – and telematics allows companies like our own to meet these high standards. 

Prediction of vehicle maintenance

Yet another way that telematics is currently benefiting the logistics industry is through the ability to predict when vehicles in fleets will require maintenance. This is also known as ‘predictive maintenance’. 

Traditional maintenance schedules often relied solely on intervals or mileage, which often led to unnecessary service checks or, conversely, unexpected breakdowns. Telematics changes this for fleet operators by using predictive analytics to forecast when a vehicle will likely require maintenance. These predictions are based on real-time data and historical performance metrics.

Not only does predictive maintenance optimise fleet performance, streamline operations and reduce downtime, but it also significantly cuts costs associated with unexpected breakdowns and repairs. The predictive model allows for more efficient use of resources by ensuring that maintenance is performed exactly when needed rather than on a rigid schedule that may not reflect the vehicle’s actual condition or usage patterns.

Reduced carbon emissions

Finally, the logistics industry is increasingly under pressure to demonstrate environmental responsibility and demonstrate sustainable logistics practices. 

Through optimising routes, minimising empty running and preventing unnecessary maintenance on vehicles, AI offers companies a tangible way to lessen their carbon footprint and shift towards greener operations. This is a huge advantage not only for logistics companies but also for their clients, who will often have sustainability targets of their own to meet, too. 

As time ticks by, we predict this will only continue to be necessary for companies to future-proof themselves against shifts in consumer expectations and regulatory requirements. 

AI in logistics: What do Fagan & Whalley think?

At Fagan & Whalley, we pride ourselves on our investments in cutting-edge resources and tools that create safer, more innovative and efficient ways of working. 

We’re confident that our integration of AI in logistics operations not only aligns with our commitment to innovation and sustainability goals but also enables us to serve our customers better and contribute to safer roads. 

For more information on how the technology we use can help streamline your logistics solutions – get in touch. Speak to us on 01282 771983 or drop us a message here.

Enjoyed this? Read more from Fagan & Whalley Limited

Latest news

1

Plans to acquire new build homes for council housing Houses under construction

Plans to acquire new build homes for council housing

19 Feb 2026

2

BAE records record sales as orders soar Typhoon courtesy of BAE Systems

BAE records record sales as orders soar

18 Feb 2026

3

Lord Lieutenant for Lancashire calls on thriving businesses to apply for Kings Awards Amanda Parker JP

Lord Lieutenant for Lancashire calls on thriving businesses to apply for Kings Awards

18 Feb 2026

4

Lancashire to shine in national VisitEngland coastal campaign Coastal campaign at Lytham St Annes

Lancashire to shine in national VisitEngland coastal campaign

17 Feb 2026

5

Green light for Eden Morecambe 251219EPM BMSG Dunes

Green light for Eden Morecambe

16 Feb 2026

Background image for hub sign up block

LBV Hub

Leverage Lancashire Business View platforms

Post your news
Post your events
Post your offers
Build your network
Improve your SEO
Gain coverage in the magazine
Sign-up
Events
CMI Level 5 Management and Leadership Course
UCLanAerialCampus.jpg.jpg
LBV Hub Seminars
21 Feb 2025 - 21 Feb 2026

CMI Level 5 Management and Leadership Course

Preston Campus, Preston , PR1 2HE

09:00 - 17:00

RISE - Lancashire's unique leadership programme for women
thumbnail_Emma Weston Illustration WENDY BOWERS RISE Illustrstion.jpg.jpg
LBV Hub Seminars
22 Oct 2025 - 18 Mar 2026

RISE - Lancashire's unique leadership programme for women

East Lancashire Chamber of Commerce, Clayton le Moors, BB5 5JR

09:30 - 15:30

Armed Forces Covenant Business Engagement
Logo.jpg.jpg
LBV Hub Seminars
24 Feb 2026 - 24 Feb 2026

Armed Forces Covenant Business Engagement

Morecambe Football Club, Morecambe, LA4 4TB

09:00 - 15:00

Preston Freelancer Meet-Up: February
LBV Hub Networking
26 Feb 2026 - 26 Feb 2026

Preston Freelancer Meet-Up: February

Society1, Coworking Space, Preston, PR1 3LT

10:00 - 12:00

Spring Forecast 2026 LIVE: Insights with PM+M
Spring Forecas.jpg.jpg
LBV Hub Seminars
03 Mar 2026 - 03 Mar 2026

Spring Forecast 2026 LIVE: Insights with PM+M

Blackburn Rovers Football Club (Red Rose Suite), Ewood Park, Blackburn , BB2 4JF

12:00 - 15:00

Chamber Breakfast Networking – March
Logo.jpg.jpg
LBV Hub Networking
03 Mar 2026 - 03 Mar 2026

Chamber Breakfast Networking – March

The Storey, Lancaster, LA1 1TH

08:00 - 10:00

Lancashire Lifesavers
Logo.jpg.jpg
LBV Hub Networking
03 Mar 2026 - 03 Mar 2026

Lancashire Lifesavers

The Story, Lancaster, LA1 1TH

10:15 - 11:15

Your marketing measurement is useless
Event header.png.png
LBV Hub Seminars
04 Mar 2026 - 04 Mar 2026

Your marketing measurement is useless

Brockholes Nature Reserve, Preston, PR5 0AG

09:00 - 12:00

Tech without the turmoil: How Finance Leaders can drive smarter digital decisions
MHA-BTI Logo_black (002).jpg.jpg
LBV Hub Networking
05 Mar 2026 - 27 Dec 2025

Tech without the turmoil: How Finance Leaders can drive smarter digital decisions

Farington Lodge Hotel, Stanifield Lane, Farington, Preston, PR25 4QR

08:00 - 10:00

Payroll Update 2026 Samlesbury Hall
payroll.jpg.jpg
LBV Hub Seminars
06 Mar 2026 - 06 Mar 2026

Payroll Update 2026 Samlesbury Hall

Samlesbury Hall, Preston, PR5 0UP

08:00 - 10:00

Women Growing Together in Lancashire
IWD Lancashire March 2026 Landscape Graphic Final
LBV Hub Networking
07 Mar 2026 - 07 Mar 2026

Women Growing Together in Lancashire

Dalvee Restaurant, Lancashire

10:00 - 14:00

Bay Hospitality Forum
Logo.jpg.jpg
LBV Hub Networking
11 Mar 2026 - 11 Mar 2026

Bay Hospitality Forum

Lancaster & Morecambe College, Lancaster, LA1 1TZ

10:00 - 12:00

Advertise with us

Reaching 50,000 members, our print, digital and event platforms offer a fantastic way to raise your business profile and help you grow.

Find out more LBV124 Online Graphic
Subscribe now

Weekly news bulletin