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Three Ways AI is Transforming Service in Transportation and Logistics

Harnessing AI to revolutionize customer service, operational efficiency, and employee productivity

October 2024 3 MIN READ

Michele Cummings
Senior Manager, Business Value Services, Salesforce

Artificial Intelligence (AI) is emerging as a transformative force in the transportation and logistics industry, enabling companies to drive efficiency, enhance customer experiences, and gain competitive advantages in an increasingly digital landscape. The impact of AI in transportation and logistics can be observed across several key areas:

Three Ways AI is Transforming Service in Transportation and Logistics

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1. Customer Service and Engagement

AI is revolutionizing customer service in the transportation and logistics industry by enabling more efficient and personalized interactions:

Intelligent Service: AI-powered tools like Einstein for Service can instantly provide relevant shipping information, track orders, and suggest solutions for delays. This enables agents to quickly resolve customer inquiries, improving response times, and service accuracy
Chatbots and Self-Service: AI-enabled chatbots and self-service portals can handle routine inquiries like tracking shipments or providing quotes, freeing up human agents for more complex issues. For example, companies like AAA have seen up to 30% case deflection using AI-powered self-service capabilities. Similarly, PenFed achieved a 60% case deflection rate and 20% improvement in first-call resolution with AI chatbots.

Omnichannel Experience: Currently, 65% of logistics companies still rely on fax, email, and phone as their primary service channels. AI helps create a seamless experience across channels (web, mobile, email, phone) by providing consistent information and context. This addresses the industry trend of shippers expecting modern, omnichannel experiences.
Personalization: By analyzing customer data and interactions, AI can provide personalized recommendations and next best actions for both customers and service agents. 77% of shippers say customer service is more important than price, so by having a more personalized approach, transportation and logistics companies will be able to better acquire and maintain their customers3.

Artificial Intelligence (AI) is emerging as a transformative force in the transportation and logistics (T&L) industry, enabling companies to drive efficiency, enhance customer experiences, and gain competitive advantages in an increasingly digital landscape. The impact of AI in T&L can be observed across several key areas:

1. Customer Service and Engagement

Intelligent Service: AI-powered tools like Einstein for Service can instantly provide relevant shipping information, track orders, and suggest solutions for delays. This enables agents to quickly resolve customer inquiries, improving response times and service accuracy.
Chatbots and Self-Service: AI-enabled chatbots and self-service portals can handle routine inquiries like tracking shipments or providing quotes, freeing up human agents for more complex issues. For example, companies like AAA have seen up to 30% case deflection using AI-powered self-service capabilities. Similarly, PenFed achieved a 60% case deflection rate and 20% improvement in first-call resolution with AI chatbots.

Omnichannel Experience: Currently, 65% of logistics companies still rely on fax, email, and phone as their primary service channels. AI helps create a seamless experience across channels (web, mobile, email, phone) by providing consistent information and context. This addresses the industry trend of shippers expecting modern, omnichannel experiences.
Personalization: By analyzing customer data and interactions, AI can provide personalized recommendations and next best actions for both customers and service agents. 77% of shippers say customer service is more important than price, so by having a more personalized approach, T&L companies will be able to better acquire and maintain their customers3.

2. Operational Efficiency and Decision Making

AI is helping T&L companies optimize their operations and make data-driven decisions:

Predictive Analytics: AI can analyze historical shipping data, demand patterns, and external factors to forecast volumes and disruptions like port congestion or delays. This allows logistics companies to optimize fleet management, reroute shipments, and prevent customer churn by addressing service issues proactively
Intelligent Logistics: AI-powered "control towers" provide real-time visibility into operations, allowing companies to quickly identify and respond to disruptions or opportunities. This addresses T&L customers with the need for improved visibility and resilience against future disruptions.
Demand Forecasting: AI can analyze multiple data sources to provide more accurate demand forecasts, helping companies optimize inventory levels and capacity planning.

3. Employee Productivity and Development

AI is enhancing employee capabilities and helping address industry challenges like labor shortages.

Agent Augmentation: AI tools can provide agents with real-time guidance, relevant information, and suggested actions during customer interactions. This can reduce training time and improve productivity, especially important in an industry with high turnover. According to Salesforce’s FY25 Customer Success Metrics for AI, agents will see a 29% increase in productivity due to predictive AI (e.g. AI that uses data to anticipate outcomes; examples: Einstein reply recommendations, Einstein lead scoring) and a 29% increase in productivity due to generative AI (e.g. AI that generates content autonomously using large language models)

Automated Workflows: AI can automate routine tasks and workflows, allowing employees to focus on higher-value activities. For example, AI can automate case classification, route shipments based on capacity, and even generate call wrap-up notes

Field Service Optimization: For companies with field service operations, AI can optimize scheduling, dispatch, and routing of technicians, improving productivity and customer satisfaction. Field Service implementations powered by AI have resulted in a 30% decrease in operational costs

In conclusion, AI is addressing critical challenges in the T&L industry by enabling more efficient and personalized customer service, optimizing operations through data-driven insights, and enhancing employee productivity. As the industry faces pressures from changing customer expectations, economic uncertainty, and labor challenges, AI provides a powerful tool for companies to differentiate themselves and drive growth. However, successful implementation requires a strategic approach that integrates AI capabilities with existing systems and processes, as well as a focus on change management to ensure employee adoption and customer acceptance.