Most of the time, when someone thinks about how artificial intelligence (AI) is being implemented into the logistics industry, what comes to mind first are the robotic automation of vehicles, warehouse optimizations, and on-site support at ports to improve precision. AI tools improve this by automating repetitive manual tasks and streamlining them. In return the outcomes boost efficiency, cut costs, and improve speeds. What does not come to mind is how AI is accomplishing the above in positions normally found behind the desk like operations, pricing, billings, and so on.
Still in the early stages
The implementation of AI in the operations of various transportation companies is still in its early stages despite AI tools being looked at as intelligent because they still need human supervision. In addition, these AI tools require a lot of clean data from the company to reach true efficiency and be utilized to its full potential. What is being seen is investments in routine tasks that do not rely on perfect data such as calling a driver or broker, getting a quote, reviewing an invoice, and answering customer inquiries via email. While at the same time, the AI outcomes still need to be checked daily or weekly for accuracy as it is learning.
Examples of this can be seen with Dow Chemical that uses AI invoice agents to automate processing and catch errors to save time and money, or even other companies using chatbots to handle customer inquiries. Even C.H. Robinson has been integrating AI into their business processes for a few years now according to online reports and a brief mention at the Trimble Insight Conference. Embracing AI is said to be seen as a net benefit in this company’s rise in profitability and cut in workforce; all disclosed in quarterly public earning releases.
Areas Where AI Tools are Being Applied to Back-Office Tasks
Below are just some of the key areas AI tools are being applied within back-office functions:
1. Email Automation:
Responding to customers’ email requests for pricing instead of using a human to pass along the quote. This new technology is being used to provide instant price quotes for an average of under 3 minutes according to three separate public sources. Specifically, Generative AI tools are able to match the human cognition to automate the management and productivity of these requests.
2. Document Automation:
Supply chains also use Generative AI tools to automate the collection of proof of delivery, POD, documents for payment verifications and audit purposes. AI is also using OCR and NLP to take data from invoices, bills of lading, and emails to lower manual data entry and human error. Missing information on these documents can be noticed, requested, or even escalated to a human supervisor.
3. Customer Service:
Chatbots powered by AI can handle customer inquires 24/7 and supply delivery scheduling, basic quote requests, and shipment tracking.
4. Carrier Selection and Risk Management:
AI tools are able to help pick the best carrier by comparing rates, market trends, and performance information instead of a human conducting manual comparisons. It can also identify potential disruptions in multiple external factors like weather and port congestion.
Shipment quotes, order entries, customer updates, carrier contacting, freight tracking, paperwork, PODs, and invoices are the same repetitive back-office work being done manually over and over again each day. It is said that a single shipment can have twenty or more individual touches, which adds up fast with ten percent of total revenue going towards this back-office work. Yet with AI tools, workflows can be customized to a company’s internal SOPs, and they can remember how a company’s operations work or recall a specific customer preference with the reasoning skills to make decisions or notice missing information on important documents.
Pros to Using AI for Back-Office Needs
AI tools can maintain multiple or even hundreds of tasks at the same time to scale up shipments and reduce human error. In addition, pretty much instant responses to tracking or quote requests can be created, increasing the win rate of a company. Actual humans can then be focused on complex tasks and expanding the human side of customer relations.
Cons/Drawbacks to Using AI for Back-Office Needs
The human side of customer service, personalized interactions and connections are reduced significantly or lost all together. Talent gaps in specialized skills, job displacement and over-reliance concerns are also noted. In addition, with older systems being used, there could be a high upfront cost for software updates and hardware for the AI integration, with continued maintenance creating additional costs because any issues or down time can halt operations.
What comes next
The next time you hear the term AI in the logistics industry, keep in mind that these tools are redefining both manual labor positions on the ground and back-office tasks at the desk, targeting muscle and mind.
It has been predicted that AI will automate all back office logistical tasks in the next five years and that those that integrate it early will grow faster with an improved cost structure, faster quote response time, and the ability to manage a greater number of freights per human employee.
Currently they are not a substitute for human presence and connection, but this window is shrinking more every day with chatbots learning to be perceived as supportive and generating feelings of connection eventually also redefining relationships with customers.
