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

Planning application for new industrial and logistics Frontier Park Preston Plans have been submitted for the land in Preston

Planning application for new industrial and logistics Frontier Park Preston

18 Dec 2025

2

Burnley College gets share of £88.5m funding to revolutionise engineering and computing education Burnley College interim principal Kate Wallace, curriculum manager for Engineering David Coar, head of projects and partnerships Rosie Fearne, assistant principal – BCUC Nina Parkin and director of Skills and Innovation Neil Burrows

Burnley College gets share of £88.5m funding to revolutionise engineering and computing education

18 Dec 2025

3

SpudBros link up with EG On The Move SpudBros opening in Blackburn

SpudBros link up with EG On The Move

17 Dec 2025

4

“This is Lancashire” film showcases the beauty of the county This is Lancashire video

“This is Lancashire” film showcases the beauty of the county

16 Dec 2025

5

Conlon Construction appoints new chairman as Michael Conlon announces retirement Michael Conlon with Guy Parker

Conlon Construction appoints new chairman as Michael Conlon announces retirement

16 Dec 2025

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
January / February 2026 Magazine networking event
Porsche Preston1200x630
Networking
22 Jan 2026

January / February 2026 Magazine networking event

Porsche Preston, Preston, PR2 1QJ

08:30 - 10:30

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

Women scaling up Blackpool Fylde and Wyre
LBV Hub Seminars
22 Oct 2025 - 09 Jan 2026

Women scaling up Blackpool Fylde and Wyre

The Small Business Academy, Blackpool, FY4 5JX

09:30 - 15:30

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

St Catherine's Christmas Tree-Cycling
Tree Cycling.png.png
LBV Hub Fundraisers
25 Nov 2025 - 10 Jan 2026

St Catherine's Christmas Tree-Cycling

Several locations, Preston, PR5 5XU

10:00 - 13:07

Lancashire post Budget analysis finance leaders events
MHA-BTI Logo_black (002).jpg.jpg
LBV Hub Networking
27 Nov 2025 - 27 Dec 2025

Lancashire post Budget analysis finance leaders events

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

08:00 - 10:00

Chamber Breakfast Networking – January
Lancs-cham-logo.jpg.jpg
LBV Hub Networking
08 Jan 2026 - 08 Jan 2026

Chamber Breakfast Networking – January

3-1-5 Health Club, Lancaster, LA1 3PE

08:00 - 10:00

Lancashire County Council – Meet the Buyer - January 2026 Webinar Event
LBV Hub Webinar
13 Jan 2026

Lancashire County Council – Meet the Buyer - January 2026 Webinar Event

10:00 - 12:00

Preston Tech Connection: Tech For Better Humans
PTC January 26 banner.jpg.jpg
LBV Hub Networking
15 Jan 2026 - 15 Jan 2026

Preston Tech Connection: Tech For Better Humans

Society1, Coworking Space, Preston, PR1 3LT

18:00 - 19:30

Lancashire County Council – Meet the Buyer Drop in Event
Meet the Buyer event new
LBV Hub Networking
20 Jan 2026

Lancashire County Council – Meet the Buyer Drop in Event

County Hall, Pitt Street, Preston , PR1 8XJ

10:00 - 15:00

Preston Freelancer Meet-Up: January
January Freelancer Meet-Up Square .png.png
LBV Hub Networking
20 Jan 2026 - 20 Jan 2026

Preston Freelancer Meet-Up: January

Society1, Coworking Space, Preston, PR1 3LT

10:00 - 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

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