Is Artificial Intelligence (AI) the Future of Yard Management? Current Use Case and Limitations in Today’s Supply Chain and Logistics Operations

Written by: 
Jason Blanchard
Posted on: 
August 21, 2024

In a world where efficiency is king, companies are turningto technology to streamline operations and cut costs.  One area that is gaining significantattention is Yard Management – specifically, the potential of ArtificialIntelligence (AI) to revolutionize how trailers access and move through ayard.  This blog post examines currentuse cases, benefits, and limitations of AI in yard management, aiming toprovide logistics and supply chain decision-makers with insightful guidanceprovided by YardView Yard Management Software, the industry's top yardmanagement service provider.

Understanding Yard Management and AI Integration

Yard Management involves controlling and overseeing allactivities within a warehouse or distribution center’s yard.  Effective Yard Management Software canimprove the flow of goods, reduce wait times, and optimize spaceutilization.  While AI is increasinglybeing integrated into our systems to enhance capabilities, offering predictiveinsights and automation that were previously unattainable, we have alsoidentified some shortcomings that will be addressed in this article.

 

Keywords Explained:

Yard Management: The process ofmanaging the flow of vehicles, trailers, and goods through a logisticsfacility’s yard

Access & Gate Control:Technologies that manage entry and exit points to secure premises.

AI Camera & Optical Character Recognition(OCR): Advanced tools using AI for reading and analyzing visualdata, crucial for identifying and tracking assets.

 

Current AI Use Cases in Yard Management:

1.   Enhanced Access Control

AI-driven access control systemscan automate entry and exit processes, reducing manual checks and the risk ofhuman error.  AI cameras equipped withOCR can read vehicle and container IDs in real time, ensuring only authorizedaccess and making gate control smarter and faster.

YardView has strategicallypartnered and integrated with multiple AI Camera companies (Eaigle AI, MacondoVision, etc.)  to enhance its yardmanagement solutions with cutting-edge technology. Through thesecollaborations, YardView has leveraged advanced AI capabilities to improveoperational efficiency and accuracy at the gate. However, the integrationprocess has revealed key limiting factors, particularly in the areas ofexception processing and handling damaged characters on a trailer or asset.These challenges have highlighted the need for more robust solutions to effectivelymanage anomalies and data integrity issues. Despite these hurdles, YardViewremains committed to refining its systems and delivering top-tier performanceto its clients.

2.   Predictive Analytics:

AI can analyze historical data topredict peak times, optimize scheduling, and manage resources dynamically.  This is particularly beneficial for supplychain and logistics companies looking to maximize efficiency and reduce idletimes within their yards.

3.   Automated Decision Making:

AI-powered yard managementsoftware can automate routine tasks like dispatching and allocation, freeinghuman resources for more strategic activities. By learning from past data, AI systems can make decisions on the fly,adapting to real-time changes in yard conditions.

YardView’s “Next Best Move”feature significantly enhances efficiency and productivity by utilizingadvanced algorithms to analyze real-time data and optimize yardoperations.  This intelligent systemevaluates various factors such as asset location, operational priorities, andresource availability to recommend the most effective actions.  By providing clear, actionable insights, ithelps reduce idle time, minimize delays, and streamline workflows.  This proactive approach ensures that yardactivities are carried out with maximum efficiency, thereby boosting overallproductivity and enabling better resource management.  Through this innovative feature, YardViewcontinues to deliver superior yard management solutions tailored to the dynamicneeds of our clients.  While this is nottechnically Artificial Intelligence, most companies would say that it is.  We consider it a different sort of AI… Automation& Integration.

4.   Real-Time Monitoring:

AI provides the ability to monitoryard activities in real time, identifying issues like congestion or potentialbottlenecks before they escalate.  Thisallows logistics managers to make informed decisions quickly, maintainingsmooth yard operations.  

YardView has also successfullyintegrated with companies like Thermo King to offer real-time monitoring andalert solutions that enhance operational visibility and efficiency.  This collaboration leverages Thermo King’sadvanced temperature control technology to provide comprehensive insights intothe condition and location of assets within the yard.  By utilizing real-time data, YardView ensuresthat users can make informed decisions promptly, thereby reducing downtime andoptimizing resource allocation.  Thisseamless integration underscores YardView’s commitment to delivering reliableyard management solutions that meet the highest standards of performance andaccuracy.

 

What are Some of the Limitations of AI Related to Yard Management?

1.   Exception Handling:

One notable limitation of AI systems in yard management is their abilityto handle exceptions effectively.  WhileAI excels in processing standard scenarios and predictable patterns, it canstruggle with unexpected events or anomalies that deviate from establishedalgorithms.  This inability to manageoutlier situations may lead to errors in decision-making or operationalinefficiencies, potentially impacting service delivery and employeeperformance.  Organizations must ensurethat human oversight remains integral to the process, particularly insituations where complex judgements are required or where empathy and nuancedunderstanding are essential.

2.   High Initial Costs:

Implementing AI solutions in yardmanagement can require significant financial investment.  Costs associated with advanced hardware,software licensing, and installation can be substantial, which may posechallenges for smaller businesses or those with limited budgets.  Companies need to weigh the long-termbenefits of AI against the initial setup costs to ensure a positive return oninvestment.

3.   Dependence on Quality Data:

AI systems rely heavily on qualitydata to function effectively.  Inaccurateor incomplete data can lead to erroneous predictions and decisions.  Therefore, companies need to invest in datamanagement practices to ensure consistency, reliability, and accuracy in theinformation being fed into AI systems.

When YardView first started tolook into integrating with data collected from AI cameras, we have to admitthat the team was excited.  The potentialto have a driver schedule an appointment and then just show up, let the camerasidentify the trailer, and then the driver gets assigned a space or dock.  But there was a problem.  Because of the inconsistencies on a trailer(trailer number location and format, SCAC number location and format, orcovered or damaged identifiers), we found that AI cameras did work WELL… Mostof the time.  But we did have to askourselves some hard questions, like will there ever be enough data collected tofill in the gaps presented with the challenges of a realistic operation?  What accuracy percentage is “acceptable” toour customers when identifying trailers? How are we going to handle when there are missing or covered characters?

These challenges highlighted theimportance of data accuracy and the need to meet customer expectations.  We understand that even minor inaccuraciescould lead to significant operational disruptions.  Therefore, our team delved deeper intoexploring potential solutions and improvements. We considered advanced machine learning models that could adapt andlearn from the vast amounts of data continuously being collected, therebyenhancing the AI’s ability to recognize trailers despite inconsistencies.  We also investigated integrating additionalsensors and manual verification processes as fallbacks to ensure consistentperformance.  

Our commitment to overcoming theseand any obstacles is unwavering.  Weengaged in rigorous testing and refinement, working closely with our customersto understand their pain points and incorporate their feedback into oursystem.  By setting stringent performancebenchmarks and developing comprehensive error-handling protocols we aimed toensure that our AI camera integration not only meets but exceeds industrystandards.  YardView’s dedication toinnovation and reliability drives us to continually enhance our technology,ensuring that our customers experience seamless and efficient operations everytime.

4.   Environmental Challenges:

AI systems can struggle with theunpredictable nature of outdoor environments, such as varying lightingconditions, weather, connectivity, and physical obstructions.  Additionally, many logistics yards may haveoutdated infrastructure that is incompatible with modern AI technologies,hindering seamless implementation with the substantial computational powerrequired for machine learning and data processing.

5.   Data Privacy Concerns

The integration with AI ofteninvolves extensive data collection and processing, raising concerns about dataprivacy and security.  Organizations mustensure that they comply with regulations and guidelines regarding personal andoperational data, which necessitates the establishment of robust cyber securitymeasures.  

 

Navigating the Future of Yard Management

Despite these limitations, AI remains a valuable componentof modern logistics and supply chain strategies.  However, it’s essential to approach AIintegration pragmatically:

·        Invest in Data Quality: Prioritize high-qualitydata collection and management practices to maximize AI effectiveness.

·        Combine Human and AI Efforts: Use AI to handleroutine tasks and free up human resources for more complex decision-makingprocesses.

·        Secure Your Systems: Implement robust securitymeasures to protect AI systems and the data they handle from cyber threats.

·        Evaluate Long-Term ROI: Continuously assess thereturn on investment for AI implementations to ensure alignment with businessgoals.

Looking ahead, the integration of AI technologies in yardmanagement is expected to evolve with advancements in machine learning,predictive analytics, and Internet of Things (IoT) devices.  These innovations promise to enhanceoperational efficiency, enabling managers to make data-driven decisions in realtime.  Staying abreast of these trendswill be vital for organizations aspiring to remain competitive in anincreasingly automated landscape.

 

Conclusion:

We recently came across a competitor’s press release toutingthe incorporation of AI Cameras into their model via one of ouralready-established AI partners.  In thepress release, it claims that AI is the “New Standard in Yard Management.”  What we found entertaining is the undertonesfound in the release.  Things like “COULDimprove automation and efficiency at the gate, yard, and loading docks.”

We agree with this statement… It COULD and WILL eventuallysolve a lot of efficiency issues in the yard as the technology continues toevolve.  An acute reader would find thatwhile YardView seamlessly integrates with AI solutions providers, we also take anapproach utilizing a different kind of “AI” … Automation and Integration.  Based on the current tolerances, we havefound that AI definitely has a value and a place, but most people are lookingfor Automation and Integration more than a computer making all of the decisionsbased on its computations.

AI undoubtedly offers promising advancements in yardmanagement, with the potential to transform logistics and supply chainoperations significantly.  However,decision-makers should carefully weigh the benefits against the limitations,considering factors like cost, data quality, and privacy.  

So, to answer the question of the day…is AI the future ofYard Management?  The answer is yes… andmaybe.  I would argue that the future ofYard Management from its current state is found in Integrations with any othertechnology as they continue to evolve more than AI specifically.  With a comprehensive integration model, asutilized at YardView, no matter what direction technology goes, the yardmanagement software can adapt and bring the data in, no matter how simple or complexit gets.  At YardView, we have a hugescale of customers that are fighting to just get off of a clipboard all the wayto the most advanced systems in the world. With a focus on integrations, we can continue to meet customers whereverthey’re at, and appropriately guide them to more advanced processes as theycontinue to evolve as well.