How AI is reshaping the logistics industry

Logistics has always been an industry defined by complexity. Vast geographies, sudden demand spikes, fragmented networks, regulatory hurdles, and rising customer expectations make it one of the most challenging sectors to modernize. Yet it is precisely this complexity that makes logistics the perfect proving ground for artificial intelligence. Across India, AI is quietly transforming how goods move, how decisions are made, and how businesses stay resilient in a world of unpredictable disruptions.

To understand the depth of this transformation, Express Computer spoke with Zaiba Sarang, Co-Founder of iThink Logistics, a leading courier aggregation platform that works with thousands of e-commerce sellers. Her observations reveal a sector undergoing a fundamental shift—one that places intelligence, prediction, and adaptability at its core.

Predictive Logistics: Moving From Reaction to Anticipation

Predicting demand in India is notoriously difficult. Shopping patterns shift across regions, marketplaces run surprise sales, and festive seasons can trigger enormous order spikes. AI has become the industry’s most reliable compass in navigating this uncertainty.

Sarang notes that AI has “significantly enhanced demand forecasting by giving deeper predictive visibility into seasonal surges.” At iThink Logistics, machine learning models analyze over a million shipment data points, drawing from historical sales, market signals, and the country’s diverse festive calendar. This intelligence enables sellers and logistics teams to plan with far greater accuracy.

She recalls the impact during the previous festival season. “Our AI-driven forecasting helped sellers reduce return-to-origin rates by up to 20 percent and improved delivery speed by 25 percent.” For an industry where margins hinge on precision, such improvements are transformative. AI, in many ways, has become an early-warning system that identifies problems before they surface.

Warehouse and Last-Mile Automation: Intelligence at Every Turn

While predicting volume is crucial, matching that demand with the right warehouse processes, capacity, and courier partner is equally vital. This is where AI-driven automation is reshaping the beating heart of logistics.

As a courier aggregator, iThink Logistics operates at the intersection of demand, geography, and partner performance. Sarang explains that AI analyzes shipment histories, pin-code patterns, marketplace shifts, and past partner reliability to anticipate load fluctuations. This gives teams early visibility into where demand will cluster, how much capacity will be needed, and which courier networks can handle the surge most effectively.

With this foresight, capacity planning becomes more precise. Warehouses are staffed proactively rather than reactively. Routing is optimized before bottlenecks form. Last-mile partners are aligned well in advance. The result is a logistics experience that feels smoother, faster, and less susceptible to disruption, even in the most intense sales periods.

Cross-Border Trade: When Compliance Meets Intelligence

As India’s exporters scale globally, the stakes of cross-border logistics rise dramatically. One missed document, miscalculated duty, or overlooked restriction can lead to customs delays, penalties, or expensive returns. AI is increasingly stepping in to eliminate this uncertainty.

Sarang highlights that “AI plays a significant part in helping exporters manage cross-border compliance and operational risks.” The systems at iThink Logistics scan international regulations, duty structures, documentation formats, and country-specific restrictions. They flag mismatches before a shipment even leaves India, ensuring that all DDP shipments carry accurate duty and tax calculations and that paperwork is airtight.

However, AI’s role extends beyond paperwork. It monitors geopolitical risks, carrier reliability, port congestion, weather-related disruptions, and fluctuating customs clearance timelines. Sarang explains that this intelligence allows the company to warn exporters about potentially slow routes and suggest safer alternatives or revised delivery timelines. In a world where volatility in trade conditions is the new norm, having AI as a continuous advisor is invaluable.

Future Technologies: IoT Gains Traction While Drones Await Their Moment

The industry is also exploring emerging technologies that can further elevate predictability and control. IoT is growing rapidly as logistics companies integrate real-time tracking and condition monitoring into their operations. According to Sarang, her team is actively working with delivery partners to deploy IoT-enabled fleet management tools that improve visibility and ensure more predictable deliveries.

Drones, while still restricted by India’s regulatory framework, remain an area of interest. Sarang acknowledges the potential of drone delivery, especially in hard-to-reach or underserved locations, though widespread use may take time. The industry is preparing for that future by exploring controlled and permissible use cases while waiting for policy structures to mature.

The Human Workforce: Augmented, Not Replaced

Despite automation, logistics remains a people-intensive sector. Far from replacing workers, AI is expanding their roles and elevating their capabilities. Sarang’s view is clear: “AI is enhancing human expertise, not replacing it.” As routine manual tasks become automated, logistics professionals are shifting toward more analytical, collaborative, and digitally driven responsibilities.

This shift is not only changing skill requirements but also improving cross-team coordination. AI-powered platforms help warehouse teams, last-mile partners, customer support units, and management work in sync, respond faster, and solve problems more cohesively. Sarang believes this blend of human judgment and machine intelligence is essential to navigate the increasing scale and complexity of the logistics environment.

AI Is Becoming the New Operating System of Logistics

The logistics sector is not simply adopting AI—it is being reshaped by it. Intelligence is now woven into every stage of the value chain, from predicting demand to preempting disruptions and orchestrating cross-border compliance. The industry is moving away from reactive firefighting and toward proactive, data-driven decision-making.

As Sarang aptly summarizes, “Every AI-driven insight helps businesses ship smarter, reduce uncertainty, and unlock new growth. Logistics is no longer about moving packages—it’s about moving intelligence.”

As India positions itself as a global logistics powerhouse, AI is emerging as the invisible infrastructure powering its ambitions. The companies that embrace this shift, like iThink Logistics, are not just keeping pace with change—they are defining its future.

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