Putting the logic into logistics: The impact of conversational AI in supply-chain delivery

 

Putting the logic into logistics: The impact of conversational AI in Supply Chain delivery

Sean Sherwin-Smith, General Manager, Post-Purchase at HelloDone.

The pandemic has driven an e-commerce boom. And, with it, increased pressure on the infrastructure of logistics networks.

From dwindling warehouse space and capacity at fulfilment centres to the need for extra staffing and new systems - the strain on already stretched supply chains is palpable.

A worldwide shift in the way carriers deliver products has shone a harsh light on sticking points until now, swept under the rug. We’ve seen disruption in the movement of goods globally due to the impact of the pandemic, exacerbated in the UK by Brexit ‘red tape’ and the resulting customs conundrum.

Add in a sharp increase in the amount of shopping done online during COVID-19 and it was always going to be a recipe for disaster.

So how can the e-commerce industry deliver on its promise to customers when its supply chains are at constant risk of being overwhelmed? 

The key lies in technology. We’ve seen countless brands race to accelerate their digital transformation following the events of the last 12 months. But this investment rarely extends beyond the buy button.

Deliveries not delivering

The evidence is plain to see in our latest research which analysed 3,000 one-star reviews across 150 major UK retailers on Trustpilot. The findings show that nearly 40% of 1-star reviews mention problems with delivery, while a further 15% cite problems with returns as a contributing factor to their negative experience.

The findings highlight common delivery issues like incorrect tracking numbers, parcels left without consent, or at insecure locations. All problems which brands could easily navigate through proactive communication with customers.

Yet, retailers and their logistics partners are working in silos, stifling the ability of technology to transform the final mile. Despite the wealth of data available to enhance this crucial stage of the customer journey, outdated communication means the post-purchase experience is still failing to deliver.

The need for better communication

In an ideal world, every order would arrive in the right place, at the right time and in mint condition. But logistics is a complex business, and sometimes things will go wrong.

Our research shows is that customer frustration is exacerbated by a lack of information about orders, with over a quarter of one-star reviews (27%) expressing dissatisfaction with customer service response.

After all, most of us aren’t angry that a parcel hasn’t arrived. We’re frustrated that we weren’t given a  heads up so that we can make an informed choice about rescheduling a delivery or arranging a return.

Customer expectations are not being met. And it’s high time the last mile received the same attention as the rest of the customer experience

If retailers want to retain loyalty and nurture repeat business, they need to work more closely with logistics partners to improve the way they communicate with customers. Not only in the frequency of communication but in the channels they use to keep customers informed.

Currently, consumers are required to bounce between text messages and emails or directed to track their order via a carrier’s app or web portal. The result is confusion and frustration for customers.

But it doesn’t have to be this way.

Digitising the value chain

Forward-thinking players are digitising their value chain. New technology, especially AI, is helping to bridge the expectation-reality gap in the last mile, offering visibility and transparency throughout the shipping process via the apps customers use and love the most.

Advances in natural language processing mean brands can now harness conversational AI technology to integrate order management systems and carrier services with popular messaging apps, like WhatsApp and Facebook Messenger.

There is now the opportunity to automate conversations with customers where they live their digital lives, offering instant, fully personalised replies to common requests such as WISMOs (Where is My Order?) or WISMRs (Where is My Return?).

Not only does this reduce the overall volume of inbound requests, but frees up customer service capacity. This means both retailers and their logistics partners have more time to handle the most complex and sensitive tickets.

By embracing technology in this way, the e-commerce industry can enhance customer support and leave shoppers with a good impression of their brand - even when there are issues to resolve.

Ownership beyond the buy button

Taking ownership of the post-purchase experience is a fundamental step in reversing the figures detailed in our Trustpilot research.

Maximising the capabilities of context-driven AI to power conversations with customers beyond the buy button has the potential to transform the dreaded last mile once and for all.

Companies must work closely with their logistics and technology partners to be readily available to customers where they live their digital lives. Those who embrace change will be best placed to support post-pandemic growth and mitigate the fallout on brand loyalty, despite supply chain pressures.