conversational AI

How Conversational AI Is Changing the Face of Logistics

With conversational AI, logistics planners significantly optimize operations and improve customer support while increasing employee productivity.

Chances are that you're already aware of the many ways AI can facilitate interactions with your customers to grow their satisfaction. AI can enhance supply chain operations by fostering a seamless and continuous flow of information through your supply chain. It can collect and store data to be used in everyday operations, making it quickly accessible for employees, and ensuring that information is timely and accurate (and that a lack of info doesn’t create silos and bottlenecks).

All of these benefits are only amplified with the help of conversational AI. 

Third-party fulfillment and retail and logistics companies everywhere are reducing the complexity of the supply chain with fully integrated conversational AI. And as we will explain later in this article, the benefits of conversational AI in logistics extend to employees, as adopting conversational AI creates new roles for humans in the company.

But first, let's consider three ways conversational AI supports logistics, unlike traditional bots.

Conversational AI for Customer Service

When logistics companies consider adding conversational AI to their analytic toolset, customer service is usually a key priority. Logistics companies live or die based on their customer service, and many third-party fulfillment services were understandably reluctant to entrust this vital task to a conversational AI assistant but have quickly found that they can rely on it. 

Consider how a virtual AI agent would answer a standard customer service question such as "Where's my shipment?"

Conversational AI assesses the customer’s intent. Suppose a customer history shows that the customer is concerned that a shipment not only arrives on time but also in good condition. Conversational AI can tackle this specific issue, telling the customer that the shipment is carefully handled while providing the estimated arrival time.

Moreover, conversational AI offers 24/7 support, so customers can communicate with your company at any time without having to hire as many operators to work a night shift.

Conversational AI for Virtual AI Assistants

Logistics companies can employ conversational AI to create virtual AI assistants. Many companies are already familiar with the advantages of intelligent virtual assistants that never need a day off and can be connected to a company’s existing systems and applications to interact instantly with a tremendous variety of control and monitoring systems.

Conversational AI combines the capacities of Artificial Intelligence (AI), Machine Learning (ML), and Natural Language Processing (NLP). These enhancements make the virtual AI assistant scalable and operational across multiple channels in your company.

Algorithmic training makes a virtual AI assistant intelligent and dynamic, responsive to nuanced differences in the assigned tasks or the queries it answers. Sentiment analysis and data insights give your virtual AI assistant an in-depth understanding of customers that increases its capacity to answer customers’ expectations with greater impact instantly.

Conversational AI Can Be Integrated Into Telematics

Telematic tracking of fleet vehicles integrated with GPS has become highly sophisticated. When integrated into a vehicle's onboard diagnostics, telematic tracking can monitor engine performance, tire pressure, and fuel performance. It can detect sudden acceleration, harsh braking, and speeding. It can inform dispatchers of scheduled maintenance and issue warnings about the need for expensive repairs if corrective actions are not taken in time.

GPS telematics can tell a company not only when a vehicle reached its destination but when the driver exited the vehicle to make the delivery and how long the driver had to wait for the customer to receive the freight.

Conversational AI makes accessing telematic information easier, but logistics companies can take it further. This vibrant new technology can give drivers their own virtual AI assistants. More than just responding to trigger words, conversational AI offers dynamic assistance to drivers while they are still on the road to make deliveries smoothly and on time.

How Much Can Conversational AI Reduce a Logistics Company's Overhead?

Business intelligence company Gartner estimates that the latest tools of AI technology handle just 1.6% of call service interactions today, but that percentage will increase to 10% by 2026. Gartner analyst Daniel O'Connell says, “Chronic customer service staff shortages challenge many logistics organizations. Most need to reduce labor expenses, which can represent up to 95% of customer contact costs. Conversational AI empowers agents to be more efficient and effective while improving the customer experience.”

On occasion, situations will arrive when human intervention is necessary. Should this be the case, the conversational AI assistant will capture a customer's name and reason for calling and then route the call to the most appropriate human agent for further service. 

But by simplifying even partial containment of calls, logistics companies can save up to 1/3 of the cost of answering a customer inquiry. Customers receive the support they need faster, and human agents can work more efficiently. And, with front-end support from conversational AI solutions, human agents can work more accurately, helping organizations reduce operational risks. 

Eager to learn more about the benefits of conversational AI in a courier business? Download this case study!


Check out the Case Study


Conversational AI Supports Your Workforce

Do existing employees have reason to fear the latest innovations in artificial intelligence? Not at all! In a time of labor shortages, conversational AI replaces work that employees don't want to do with work that they find desirable.

This new technology helps retail and logistics companies grow, creating new opportunities for your pre-existing workforce. If your employees can delegate tedious, time-consuming tasks to their conversational AI assistant, they free up their time for more strategic, value-add projects. By focusing on more strategic tasks, your employees will feel greater job satisfaction–in addition to driving your company forward. 

Teaming conversational AI with advanced analytics empowers logistics planners to make forward-looking, strategic decisions. Adding conversational AI to their data tool kit lets planners spend less time on reactive problem solving and more time on proactive planning. 

Every Logistics Company Needs Conversational AI

Conversational AI helps logistics companies deliver answers fast to customers of all kinds. When the system can't contain a call, it helps them find the right place to go. It matches your available talent with your customer's needs.

Additionally, conversational AI gets to know your customers, giving them tutorials on using your services and prompting agents engaged in live interactions to reinforce important answers to recurrent questions for greater customer satisfaction. As such, conversational AI can support up to 80% of customer interactions, freeing your agents to deal with complex issues.

With the power of conversational AI, logistics planners can significantly optimize operations, accelerating and improving customer support while making jobs easier for their pre-existing workforce. With streamlined processes, logistics companies can manage multiple supply chains better to handle specific customer needs more responsively and profitably. 

Interested to get more insights into conversational AI's capabilities? Just tap the banner below!


Get the Guide on Conversational AI


Similar posts

Get notified on new Conversational AI insights

Get the latest insights on how conversational AI and automation are transforming the way teams work, while enabling cost savings and better user experience.