The Role of AI-Powered Logistics in eCommerce

Role of AI Logistics in eCommerce

Today, the eCommerce business has entirely revolutionized retail. It has significantly influenced the buying behavior of customers across the globe and pushed retailers to sell online owing to the tremendously rising competition. According to Statista, 21.8% of the World’s population buys online, and in 2021, the number is expected to rise to over 2.14 billion.

Logistics is an indispensable part of the eCommerce business and plays a major role in the way the industry operates. AI-backed logistics solutions in the eCommerce business are evolving with growing business requirements and are acting as an important lever for business growth.

Let’s look at some of the most innovative solutions in logistics fulfillment that are reshaping the future of the eCommerce business supply chain.

Increase in First Attempt Delivery :

Geocoding is the technology of converting physical address descriptions into precise geographical coordinates on a map that can be easily identified. Advanced geocoding solutions combine machine learning, natural language processing, and rule-based improvements to gather complete address information and convert even the fuzziest addresses correctly, precisely to door number, lane, and locality. Implementing a geocoder can help eCommerce business improve First Attempt Delivery Rates (FADR) as well as cut down on delivery costs and time significantly.

Route Planning Solution :

In a world of one-day, two-day, and same-day fulfillment, delivery agents are loaded with hundreds of parcels to be delivered in a day. Finding the most effective, time-saving route is not possible with human intelligence anymore. A route planner or journey planner is a search engine that automatically plans and optimizes deliveries, taking into consideration various business parameters, like SLAs, geographical, and traffic constraints. Route planning software not only helps businesses plan deliveries smartly but also assists in effective decision-making.

Logistics Tracking and Analysis :

Logistics management involves several phases, including transportation, packaging, warehousing, materials handling, and condition management. Any deviance at any stage could cause a delay in last-mile fulfillment, increasing logistics costs and impacting customer satisfaction.

The future of eCommerce logistics lies in tracking, tracing, and predicting. Logistics tracking and analytics solutions allow businesses to track products, material, or on-ground resources in real-time, send notifications to logistics managers in case of any divergence or delay, and offer critical insights using the power of analytics.

Intelligent Shipment Sorting and Fleet Allocation :

eCommerce logistics hubs have to deal with a wide-ranging category of products to be delivered in different locations on a daily basis. Sorting packages based on Zip codes and areas manually is time-taking and error-prone. Intelligent shipment sorting is an automated sorting solution that helps businesses sort bulk delivery orders based on multiple factors, saving time and effort significantly, thereby improving operational efficiencies.

Some AI-logistics solutions also offer intelligent fleet allocation, assisting companies in allocating specific goods in specific vehicles as well as offering the most optimal mix of owned and rental fleet to drive cost efficiencies to manage your eCommerce business.

Smart Reverse Logistics and On-Demand Routing :

A key element of eCommerce logistics is reverse shipment, which includes all the processes associated with product returns, repairs, maintenance, etc. New-age logistics solutions have introduced smart reverse logistics solutions, helping on-ground agents plan reverse logistics systematically along with forwarding logistics. Nowadays, companies also are AI-assisted on-demand routing and re-routing solutions along with scheduled orders, enhancing customer satisfaction.

Conclusion :

Logix Platform will offer you a comprehensive eCommerce fulfillment solution for merchants and service providers to redefine business strategies and implement our platform across key areas of operations, especially logistics, in order to cut costs, optimize processes and ensure maximum customer satisfaction.