XPO Logistics :: La Inteligencia Artificial como palanca de eficiencia en el transporte

Let’s Move the World Forward.

Innovation, part of our DNA

Astransportsolutions leader,innovationisoneof ourkeycompetitive advantages

During nearly a decade our investment in technology to develop innovativesolutions has been one of the biggest of the industry: around 300 milliondollars per year globally

In around 3 years we have created a new digital ecosystem

Why Can Digital Transformation Fail?

OF BIG CORPORATIONS

FAIL IN THE DIGITAL TRANSFORMATION JOURNEY

70% McKinsey

Source: https://accntu.re/3jl7jC2

3 reasons

Lack of up-front commitment

Failing to take an iterative sprint approach

Taking a technology-first approach

DIGITAL TRANSFORMATION

Needs change

Change needs to be Managed

CHANGE MANAGEMENT

THE FUTURE IS HERE

The Industrial Revolutions

First cars 1885

Karl Benz invented the first car that worked with gasoline

Lord Palmerston's Liberal government passed a law that, effectively stopped innovation in powered road transport in Britain, also known as the RED FLAG ACT, required:

• Self-propelledvehicles to have a speed limit of 4 mph (6 Km/h) in country roads and 2 mph (3 Km/h) in city roads.

• It should have a crew of 3 – a driver, a stoker and flag man.

• The flag man need to carry a Red flag and walk 60 yards (55 m) ahead of the vehicle.

Today’s cars 2020

Amazon’s Zoox unveiled its self-driving robotaxi.

It’s a “carriage-style” car, which means that passengers face each other.

The car can travel up to 75 miles per hour and can run up to 16 hours on a single charge.

“If I had asked people what they wanted, they would have said faster horses.”

- Henry Ford

Industrial Revolutions

The vision for the fifth industrial revolution is mass personalization and customization made possible by cooperation betweenman and machine, as human and artificial intelligence work together, in harmony.

1970 Industry3.0

Computer and automation

1780 Industry1.0 Machinery, Waterpower, Steam power

1900 Industry2.0

Mass production, Assembly line, Electivity

120 YEARS

2020 Industry5.0

Human-cyber-physical systems (HCPS)

70 YEARS

2000 Industry4.0

Internetandcyberphysicalsystems

30 YEARS

20 YEARS

Evolution or revolution

What is Artificial Intelligence?

Artificial intelligence is a wide-ranging branch of computer science concerned with building smart machines capable of performing tasks that typically require human intelligence.

But… AI is not intelligent today…

Types of AI

Weak or narrowAI

Narrow AI is goal-oriented,designed to perform singular tasks. While these machines may seem intelligent, they operate under a narrow set of constraints and limitations

Strong AI

The concept of a machine with general intelligence that mimics human intelligence and/or behaviors, with the ability to learn and apply its intelligence to solve any problem. AI researchers and scientists have not yet achieved strong, very closed.

SuperintelligenceAI

Artificial super intelligence (ASI), is the hypothetical AI that doesn’t just mimic or understand human intelligence and behavior; ASI is where machines become self-aware and surpass the capacity of human intelligence and ability.

Asking AI

Please create photo of a salmon swimming down a river

ChatGPT from OpenAI is a viral sensation – what makes it special?

What is ChatGPT?

ChatGPT (Chat Generative Pre-trained Transformer) is a chatbot developed by OpenAI and launched in November 2022. It uses deep learning techniques to generate human-like responses to text inputs in a conversational manner.

What are the best use-cases where ChatGPT can be applied?

▪ Customer Service

▪ Content Generation

▪ Personalization

▪ Custom Chatbot/ Virtual Assistants

▪ Lead Generation

▪ Code Review/ Code Generation

The future of AI

A recent study (2020) is predicting the following trends:

2024 AI will surpass humans in translations 2027 Driving Trucks 2031 Sales 2049 Bestsellers writing 2053 Surgery

In 1967, a team at Texas Instruments revolutionized the world - The first handheld electronic calculator was released

IMPLEMENTING ARTIFICIAL INTELLIGENCE Lean AI

Method

We use an adapted methodology of the DMAIC approach from the Lean Six Sigma:

MEASURE

IMPLEMENT

DEFINE ANALYZE CONTROL

Define

Create Project Charter and collect Voice of the Customer

Identify Stakeholders and their role in the project

Describe the Job To Be Done

What problem do we want to solve and why?

Prepare Change Management Strategy (WIIFM)

A correct definition of the problem is essential to establish the right KPIs that will allow us to have a better understanding of the situation. The main objective of this phase is to have a view of the scope, identify the stakeholders and have a kickoff meeting

How will we measure success?

We should measure the current situation / process and establish a monitoring pace that will allow us to analyze the situation after the implementation.

Analyse

Define potential technical solution

In this phase we need to define a proposed technical solution to solve the opportunity identified.

Decide if Buy or Build 3C analysis (Company, Customers & Competitors) Process Value 1

3 100% 0% 25

2

Implement (Agile)

Train users and roll out product once stable

Implement Solutions

The purpose of this phase is to implement solutions and make the necessary adjustments until is providing good results.

Deploy the first release and start gathering feedback to adjust algorithm ARTIFICIAL INTELLIGENCE | IMPLEMENTING AI Agile 26

Ensure results are getting better and new process is adopted by all users ARTIFICIAL INTELLIGENCE | IMPLEMENTING AI

Share lessons learned and celebrate with the team

Flywheel model – the results should get better over time

In this phase we review the success adoption of the new process and consistency of the new metrics.

Better

The AI

Better

Product More Users

AI More Data

27

CASE STUDIES

AI at XPO

Robotic Process Automation (RPA)

What is an RPA?

Robotic process automation (RPA) is a software technology that makes it easy to build, deploy, and manage software robots that emulate humans' actions interacting with digital systems and software.

Where has it been used?

We have developed many RPAs for admin tasks that are repetitive and time consuming for employees.

What are the benefits?

More than 5000 hours saved in 2022

Demand Forecasting with Machine Learning

How does ML-driven Demand Forecasting?

A Machine Learning algorithm will run through a dataset, look at data features, and (try to) pick up any underlying relationship to create a forecast.

Where has it been used?

We have developed Power BI Reports that show the forecast of orders in the different business units.

What are the benefits?

This allows the teams to plan the right resources in advance and increase productivity.

Note:Recent forecasting competitions (such as M5 and Corporación Favorita) showed an error reduction of 20 to 60% compared to forecasting benchmarks

Chatbot

How does a Chatbot work?

A chatbot is a computer program that simulates and processes human conversation (either written or spoken), allowing humans to interact with digital devices as if they were communicating with a real person.

Where has it been used?

We have developed one internal Chatbot for employees to ask question about HR and we are developing one for our Last Mile consumers within WhatsApp.

What are the benefits?

Reduce the number of support calls (productivity increase) and increase users' satisfaction.

Route Planning with Artificial Intelligence

How does a Route Planning work?

Platform that generates proposed routes based on pre-defined conditions and historical data.

It uses Artificial Intelligence technology to predict the best routes.

Where has it been used?

We have created a Route Planning tool that provides weekly plans.

What are the benefits?

To reduce the empty Km and increase the fleet capacity by providing weekly plans.

Optical Character Recognition (OCR)

How does an OCR work?

Optical Character Recognition (OCR) is the process that converts an image of text into a machinereadable text format.

Where has it been used?

To create orders into our TMS from reading a POD (Proof of delivery).

What are the benefits?

We have eliminated nonvalue added admin hours and reduce errors. Employee no longer need to create expeditions manually.

The Key Components to Succeed…