Read about new applications in artificial intelligence (AI) and you might run across references to “natural language processing” (NLP), which is a technology for teaching computers to analyze human language.
According to IBM, NLP can give computers the ability to understand text and spoken words in much the same way human beings can. That capability powers popular tools like voice-operated GPS systems and speech-to-text dictation software.
At first glance, it might seem like that has no relation to your daily logistics challenges, but the data management firm Promethium begs to differ. In fact, the Menlo Park, California-based company reports that NLP is already being used in supply chain management. As for how the technology can be applied to logistics, the company offers the following examples:
- Tracking inventory levels. NLP can be used to read shipping manifests, invoices, and other documents to track the movement of goods. This information can then be used to identify—and correct—problems such as overstocks or stockouts.
- Tracking demand. NLP can be used to analyze customer reviews and social media posts to identify trends in customer behavior. Armed with that information, companies can do a better job of forecasting product demand and thus save money by avoiding stockouts and overstock situations.
- Improving communication. NLP can be used to create chatbots that can answer customer questions, resolve issues, and make recommendations. That frees up human employees to focus on more complex tasks, while also providing customers with a convenient way to interact with brands.
