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Most people have interacted with a chatbot – when booking a travel package, shopping online, requesting information from a brand, etc. Statista estimates that the global chatbot industry will reach $1.25 billion by 2025, up from $190.8 million in 2016. Chatbots are valuable because they can work around the clock without getting tired, are easy to use, and they don’t make errors.

Among the industries that are rapidly implementing chatbot technology are supply chain and logistics. In this article, you will find out why you need to invest in logistics software solutions that include a chatbot, the benefits of chatbot technology in logistics, and where you can get assistance in creating a chatbot for logistics.

Why Do You Need to Build a Chatbot for Your Logistics?

To understand why you need a chatbot, you must first know how it works. A chatbot uses artificial intelligence and machine learning to deliver digitized and personalized customer service on a website. It usually pops up in the form of a dialogue box, asking users if they need assistance with the website or advice on purchasing.

According to a MarketsandMarkets analysis on the Chatbot Industry, the market will expand to USD 9.4 billion by 2024, with a CAGR of 29.7%. The production of self-learning virtual assistants to provide human-like conversational interactions is becoming a fundamental competency for many businesses. Logistics is not an exception. Chatbots have several applications in customer service, but their potential to enhance operational operations inside a supply chain is vast and untapped. The way a user interacts with software is evolving thanks to virtual assistants. As an industry's transportation demands grow, so does the necessity for efficient communication and guidance.

Chatbots can solve most customer service problems that businesses in logistics transportation currently face. Bots can also help you to deliver high-quality support in customer deliveries and logistics, reduce costs, and optimize employees’ time management.

Benefits of Implementing Chatbots for Logistics and Transport Businesses

Here are several ways how chatbot technology helps businesses in logistics, deliveries, and transportation:

1. Chatbots can Provide Quick and Accurate Responses to Customer Queries

In Drift's state of marketing report, the capacity of chatbots to answer questions 24/7 is mentioned as a major feature. Regardless of the user's location, a chatbot may obtain information on cargo at any moment without the need for human intervention. So you may save money on specialized human help for checkout, delivery tracking, and addressing client queries by using a chatbot.

2. Chatbots can Facilitate Site Navigation for Customers

A bot can help your customers move around within your site easier. Thus, it enhances the user experience and reduces the bounce rate. 

 As this practice shows, consumers will become increasingly receptive to interacting with chatbots. 

3. Chatbots can Receive Delivery Requests

The traffic planner or manager may utilize the chatbot to ask inquiries about current or past orders since it can operate like an engaging human-like bot. To offer more accurate results, the chatbot may give more details such as the date or the freight order numbers. Customers can request deliveries through logistics chatbots, too. The bot can get the details of the order, process it, and even issue a receipt.

4. Chatbots can Process Order Amendments

 Order administration is simplified by chatbots, from accepting orders to completing the delivery procedure. It allows for the tracking of delivery status and the maintenance of the supply-demand chain. It can also handle order changes, as well as check product aspects and status. Logistics chatbots can also help customers cancel or amend their deliveries. By using the order tracking number, bots can retrieve order details from the company database and assist the customer accordingly.

5. Chatbots can Track Shipments

Chatbots can perform shipment tracking in logistics transportation better and faster. While previously, users had to fill online forms placed on a company’s website, now they can just activate a chatbot to find out the required information. For example, an AI-based chatbot launched by UPS can be accessed by users even via Facebook or Skype, while Alexa assistant can track parcels since 2016.

With a chatbot,  it is possible to send delivery alerts and updates to your consumers about corporate offers or customer orders. Clients respond quickly because the chatbot method is so simple. In addition, the logistics business employs a large number of people. Companies may use chatbots to send effective company-wide communications and information to all employees at the same time.

6. Chatbots can Process Low-priority Requests

A chatbot is capable of competing with humans in simple everyday tasks such as replying to a low-priority enquiry. This allows the human agents to concentrate on more difficult tasks. When a request for transportation or shipping is made, however, the chatbot transfers the assignment to the relevant staff member for further action. It informs the end-user of the current request status.

7.  Chatbot can Offer Analytics and FAQs

According to the user's needs, the chatbot may also collect information. The client can, for instance, ask the chatbot to provide a full report on freight orders that include open orders, orders that haven't begun, orders that have carriers assigned, and items that have been delivered. The chatbot analyzes the data directly and displays it in clear diagrams that can help with decision-making. Chatbots can help in collecting insights that support teams can use to improve customer experience and develop solutions to prevent possible issues in the future.

What is more, the common questions area is typically included on a website and is an essential part of the user experience. In time-sensitive circumstances, a chatbot is utilized to lead the user to the appropriate resource. The FAQs can be used as a guide, or the intelligent chatbot can respond to the inquiry.

  1. Chatbot can Make Simulations of Costs

The Chatbot can calculate shipping costs based on the origin and destination of the cargo. In most cases, a user would have to generate an order in a traditional SAP TM System to extract information about shipment costs, whereas a chatbot can do so quickly. As a result, a chatbot may assist a user make an educated decision by saving time and increasing the performance of the process by offering realistic cost estimates.

Wrapping Up

Customer service plays a vital role in users deciding whether to become loyal client or not. Therefore, it is crucial to adopt chatbots to enhance customer support and experience. Chatbots have already become an essential part of transportation software development, providing a link through which data science can help logistics. Do you want to create a supply chain or logistics chatbot? Contact inVerita for expert help.

The article was updated on February 16. 2022
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