AI is taking over logistics’ endless calls and emails

The multi-trillion-dollar logistics industry revolves around transportation via trucks, trains, ships, and planes. However, it's also driven by constant communication through calls, texts, and emails. Mike Neill, chief technology officer at C.H. Robinson, notes that companies seeking to ship goods reach out to freight brokers who then connect them with carriers.

The process involves numerous back-and-forth exchanges regarding details like shipment size, insurance requirements, and special handling, as well as scheduling. Traditional methods of handling these communications have been labor-intensive, with humans often struggling to keep up with the volume and respond quickly enough to capitalize on opportunities.

In response, C.H. Robinson has adopted artificial intelligence to streamline its operations. They started by deploying AI bots to detect shipping quotes in incoming emails, then gradually expanded their capabilities to automatically respond to many requests. This has resulted in faster responses, increased shipments processed per employee, and higher margins per transaction.

Much of the AI infrastructure was developed in-house, while other logistics companies have partnered with tech firms specializing in logistics AI. These collaborations aim to cut costs and boost efficiencies, allowing humans to focus on complex problems and building relationships rather than engaging in repetitive tasks. Harish Abbott, CEO of supply chain AI company Augment, likens the pre-AI system to a "coordination tax" that leads to inefficiencies such as trucks waiting, empty miles, and underutilized labor.

Augie, Augment's AI system, helps sift through incoming emails to identify shippers seeking quotes or delivery status updates, detect carrier needs, and generate quotes based on provided rules or integration with an existing quoting engine. Augie can also run security checks, place calls or emails in multiple languages, and extract data from various email formats.

While AI is unlikely to replace humans entirely, it can help shift employees away from low-level tasks like answering emails and focus on strategic aspects of their jobs. Envoy AI's Ellie, for instance, assists carrier representatives in negotiating pricing and communicating with carriers via email, phone, or text. By automating these tasks, AI frees up human employees to build relationships and address strategic issues, ultimately leading to better business outcomes.