Can AI Fix Inefficiencies in the Supply Chain? [Infographic]

Brian Wallace — April 17, 2019 Follow @nowsourcing

— April 17, 2019

Leading the way for customer experience in shipping is Amazon with some of the fastest and most reliable shipping options. Yet three out of four consumers say they would choose another retailer over Amazon if better shipping options were offered, while 90% of consumers expect a full refund for late delivery.

It’s no surprise that quality shipping is a huge consumer expectation and on that front, they are very unforgiving. But that doesn’t mean getting logistics right is exactly easy. In 2018, empty trucks made up 16% of total mileage for a single US company and excess inventory costs businesses across the board $ 443 billion every year, all the while E-commerce sales keep increasing. And this pattern of inefficiency is beginning to catch up.

Over the course of 2017, US companies spent $ 1.5 trillion on shipping and logistics at a 6% increase from 2016. In an attempt to keep up with the E-commerce boom, more businesses are shifting their focus to streamlining shipping and logistics, but traditional operational practices aren’t taking customer experience in account. This is bad news for consumer satisfaction as 8 in 10 are unlikely to shop with a retailer again after a poor delivery experience. What we are left with is idling equipment, wasted money, unnecessary pollution, and on top of all that, very unhappy customers.

But a 2017 study revealed an interesting result: 71% of retailers found that sharing data like orders, shipments, and delivery information across all levels of departments was an improvement. And it’s artificial intelligence making this possible. For businesses looking into tech tools, cost reduction and increased profit margins are first on the list. Though AI, market demand can be predicted enough to adjust inventory needs, delivery routes can be optimized via algorithms to manage fuel, time, and distance traveled while cutting CO2 emissions and fuel costs simultaneously.

From predictive maintenance to automated shipping standards, AI is changing the game for E-commerce sustainability. Ready to find the right fit? See this infographic for more on how to find the right tech fit for your business, sell smart, ship smarter, and keep your customers coming back for more.

Infographic Courtesy of Noodle.ai

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