Artificial Intelligence Seen Helping Drive Logistics Industry Cost Cuts, Sustainability

October 16, 2022 | By Business World

The logistics industry is expected to benefit from artificial intelligence (AI), which can improve the customer experience, cut costs, and make operations greener, Indian software company Shipsy said.

With e-commerce growing in the Philippines, the industry should take advantage of opportunities by going digital to meet evolving customer expectations, Shipsy Chief Executive Officer and Co-Founder Soham Chokshi told BusinessWorld in a recent e-mail interview.

“Almost 51% of shoppers return their orders if they don’t arrive on time,” Mr. Chokshi noted.

Delivery speed is among the primary challenges for retailers.

“The courier express and parcel industry struggle with poor quality addresses and drivers’ inability to navigate to the customer location on time, which ultimately leads to more returns, greater fuel consumption, and CO2 (carbon dioxide) emissions, putting all initial logistical efforts to waste,” he said.

Technology solutions powered by AI and machine learning (ML) help the industry address such challenges, he added.

“Advanced geocoding converts poor-quality addresses into exact latitudes and longitudes. The coordinates are displayed as a clear polyline on the driver’s mobile app leading them to the exact customer location,” he said.

Logistics tools powered by AI and ML optimize routes to reduce emissions. “Such route optimizers help eliminate empty miles, reduce the distance traveled, prevent vehicle idling, and lower trip volumes,” Mr. Chokshi said.

“Such tools provide predictive visibility to customers in terms of the expected time of arrival, along with allowing them to track delivery progress in real-time,” he noted.

“Innovative optimizers enable customers to reschedule the delivery to their preferred time slots.”

The company is optimistic about the Philippine logistics industry in 2023, citing the government’s efforts to boost digitalization.

“The introduction of the Unified Logistics Pass system and discussions on leveraging technologies to identify supply chain bottlenecks are encouraging,” Mr. Chokshi said.

He also added that rising consumer spending and a young, tech-savvy population are driving the growth of Philippine e-commerce.

“It is poised to reach $24 billion by 2025.”

“This is inviting international players to make strategic investments in the region, making it imperative for logistics service providers to keep up with the rapid technological advancements to stay competitive,” Mr. Chokshi said.

“Great opportunities await businesses that leverage technology to automate, optimize, track, and simplify their logistics and supply chain operations.”



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  • World Logistic Passport

  • Logistics Partner

  • Supply Chains


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