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Using AI to improve delivery applications

Using AI to improve delivery applications

By Siddhartha Bal

In today’s complex market structure, businesses are rapidly shifting to e-commerce to maximize sales and expand their customer base. According to a report by the industry body, FICCI and Anarock, the Indian e-commerce industry is expected to reach USD 120 billion by 2026. This has led to increased demand, making it difficult for businesses to fulfill deliveries on time or as swiftly as customers expect. Delays in delivery result not only in poor satisfaction levels but also loss of customers – this is simply unaffordable in a very competitive market.

Recent technological advancements have led to the evolution of tech-savvy consumers, who demand even faster delivery and support. The traditional delivery model – which involves planning routes, estimating fuel costs, and verifying the product and addresses manually – does not suffice. The traditional model fails to analyze traffic patterns, identify viable routes and predict miscommunication. Since everything is done manually, planners are unaware of weather and other route parameters that might lead to accidents or delays. Another major drawback is the lack of real-time tracking of the vehicle. The company is unaware of the driver’s location, which might sometimes result in fraud.

That’s where artificial intelligence (AI) comes in.

To keep pace with the soaring demand for faster deliveries while ensuring the safety of drivers and goods, logistics companies are integrating delivery management systems with AI capabilities. An AI-powered system is an innovative way of enabling faster deliveries in real-time. The system uses GPS technology and machine learning (ML) capabilities to offer the best delivery solutions even before the customer places an order.

According to a McKinsey analysis, AI will usher in a new logistics paradigm by 2030. There are many companies like DunZo, LogiNext, GoBolt, Locus and Pickrr that have started using AI to enable faster, safer and more efficient deliveries to increase customer satisfaction and retain them.

But how does such a system improve delivery management? Based on various parameters like weather, previous delivery records, number of deliveries and inventory, the system predicts the best way to fulfill delivery. These include:

The other benefits are:

AI streamlining the delivery process is making it easier for companies to focus on other critical areas. As business and e-commerce landscapes get more complex, more companies will incorporate AI in their delivery models. By using AI as a guiding principle, companies are turning driverless delivery into reality to avoid challenges in middle-mile and last-mile delivery processes. This will help businesses to bolster their supply chain game.

Adapting itself to the changing business environment, AI has transformed the dynamics of delivery in healthcare, e-commerce, agriculture and the military. Through driverless and drone delivery, AI facilitated relief operations during the COVID-19 pandemic. In line with government norms, the synergy of AI and delivery management systems enabled doctors to supply medicines and vaccines during the lockdowns.

As we transition into a digital future, AI will undeniably open new avenues for companies to thrive.



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