How To Use Conversational AI in Logistics Management

By Rachana Chotia / In Conversational AI, Logistics / May 25, 2021 / 4 mins read

Conversational AI in logistics focuses on using the automation process to facilitate the smooth management of the logistics system and reduce errors. We look at the benefits and use cases in this article.

Supply chain management and logistics are usually considered to be an ancillary function of a business. But in the true sense, this is one of the primary functions that connects the raw material supplier to the producer and the producer to the final consumer. 

There’s no doubt the use of chatbots has increased incredibly during the past few years. In fact, one can consider inventory management chatbot and supply chain chatbot at the very primary stage.

According to Statista, the overall chatbot market is expected to reach $1.25 billion by 2025 compared to $190.8 million in 2016, which is a giant leap.

Leaving the competitive advantage aside, Conversational AI in logistic is definitely a critical update to adopt.

Before we look at the use cases, let us briefly understand what conversational automation is? 

Conversational automation and benefits in logistics management 

One of the biggest questions that we come across is ‘What is conversational Automation?’ It refers to the use of AI and NLP to respond to human queries in the most efficient manner. This could be through chat and voice medium.

Conversational systems for the supply chain focus on using the automation process to facilitate smooth management and reduce errors.

Below, we examine the benefits gained by adopting conversational automation in logistics.

1. Improved productivity

First thing first, the main concern of the business is to ensure the timely delivery of the final product to the consumer. Pairing the logistics systems with the inventory management chatbots can help keep track of the demand and the requirements related to the supply.

Using Conversational AI can remove repetitive tasks like updating CRM, scheduling meetings, creating documents, and more. It can help in improving the overall productivity by channelising the needs to more essential aspects.

2. Reduced operational risks

While adopting the conversational systems for the supply chain, the chances of operational risks reduce. Thus, reducing the overall operational costs.

Streamlining the repetitive processes, billing, stock management, and delivery system can avoid the lapses that could cause bigger slip-ups. 

3. Improved customer experience

The main benefits of Conversational AI for logistics is that it connects the customer and business seamlessly. As a result of using Conversational AI for supply chain management, companies can offer 24*7 customer support. Thus, improving the experience.

It ensures a competitive edge as well as efficiency and timely delivery. To begin with, a conversational platform can accurately and quickly answer fundamental questions. It can also proactively communicate with users, avoiding the need to create a ticket.

Moreover, you can serve customers on different channels, such as WhatsApp, Website and Facebook Messenger.

4. Improved workflow

The use of conversational systems in logistics management has improved the workflow between the users by smoothening the conversation. In particular, the automated communication process based on the keywords smoothens the workflow by properly managing, analysing, and interpreting the complete data.

5. Better visibility and inventory management

A business has multiple inventories to manage. Right from the raw material to the finished product, everything needs to be addressed most appropriately.

Zurich Insider showed that 63% of the companies still do not use technology or monitor the supply chain performance.

Automating the supply chain process presents better stock visibility, data tracking and managing a benchmark. Collecting inputs can ensure smooth business processes.

Suggested Listening: How Blackbuck improved customer support

Conversational AI use cases in logistics

Above, we can saw Conversational AI is the best tool for all business departments, ensuring better productivity and profitability.

There are various applications of conversational systems in logistics management. The best Conversational AI Chatbot use cases in logistics are:

  • Share relevant information with new prospects. By providing a seamless experience and nurturing them with proactive messaging, you can convert website visitors to loyal customers.
  • No matter how smoothly a business performs, multiple queries might arise, and a need for 24*7 assistance is required. Using Conversational AI for logistic customer support, the company can personalise replies to repetitive questions and answer them accurately and quickly.
  • The GPS integration for conversational systems in logistics management is one of the most efficient uses. Basically, it simplifies tracking status and sharing this information with relevant parties.
  • The logistics and supply chain department has many sub-departments in charge of different operations. Conversational AI can ensure the user is connected to the right person in the right department to help them with complex queries. This smart routing saves everyone’s time and efforts.
  • The integration of the supply chain chatbot can be a cost-effective and profitable move. The natural conversations increase customer satisfaction, which subsequently creates opportunities for upselling and cross-selling.
  • Last but not least, using the inventory management chatbot can give signals related to the available stock. Tracking this information, teams can communicate in-house for smooth flow of goods. Integrating with the order management system will help to maintain the best relationship between supply and demand.

Conversational systems in logistics management: Smooth processing assured

In conclusion, we would like to wrap this up with a survey. Eyefortransport survey pointed out that only 4% of organisations use AI in their supply chain, which is relatively low.

With the increasing demand for the products and the requirement to expand the reachability, Conversational AI application for logistics is increasing.

Indeed, the need of the hour for every business is to focus on reducing errors and improving efficiency. Marketplaces like Amazon and Flipkart are entirely focused on adapting the technological assistance to improve that flow. And it is visible in their customer satisfaction level.

Verloop.io, with years of experience, offers Conversational AI in logistics that aims at smoothening customer support. To discover how your logistics team can improve conversations, support and productivity with automation and Conversational AI, let’s talk.

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Rachana Chotia

Content and Marketing, Verloop.io

Here to write about all things Customer Support Automation. If I’m not writing, I’m either reading or planning a trip.