Logistics inefficiencies can be resolved by technology, according to a chief executive officer of a leading logistics software solution provider.

It can also help logistics players survive the competition by optimizing performance, Soham Chokshi, CEO and co-founder of Shipsy, said in an email interview on Wednesday.

Shipsy is an artificial intelligence-powered platform that optimizes delivery and pickup.

"Modern-day technologies can help businesses thrive in a rapidly evolving market and achieve operational excellence. For instance, our smart logistics management platform leverages disruptive technologies, such as artificial intelligence, machine learning and predictive analytics, to empower our customers to reap exceptional business outcomes," Chokshi said.

Chokshi said their smart logistics optimize delivery routes, shrink distance traveled by 5 percent and lower trip volumes by 6 percent to reduce cost.

"Our proprietary geocoding engine enhances address quality and ensures seamless customer communication to minimize the return to origin instances by 18 percent. The system improves vehicle capacity utilization by 31 percent and smartly combines multiple pickups and deliveries to drive 14 percent more deliveries per driver," he added.

The CEO said all Shipsy capabilities bring down mid-mile and last-mile logistics costs by 12 percent and 23 percent, respectively.

"The technology enables logistics-powered businesses to cost-effectively scale their deliveries by partnering with multiple 3PLs (third-party logistics) and managing them under a single dashboard. It also keeps a tab on delivery KPIs (key performance indicators) and validates them with customers. It helps businesses not only deliver on the promise of one-hour/same-day delivery but also increase customer satisfaction," he said.

Reducing costs
Automation-powered smart logistics management platforms chart the most efficient routes to multiple touchpoints.

This includes the most viable progression of deliveries/goods movement that results in better speed, lower fuel consumption, lesser carbon emissions, more deliveries per driver per vehicle, and much more.

"It lowers the distance traveled by 5 percent, reduces trip volumes by 6 percent, completely eliminates empty miles, prevents vehicle idling, boosting overall delivery productivity. Smart route optimizers also trigger a notification with an estimated time of arrival and a real-time tracking link to the customer once the consignment is out for delivery. It plays a vital role in increasing first-attempt delivery rates and reduces return-to-origin instances by up to 18 percent," Chokshi said.

Besides this, he said Shipsy helps tackle the underutilization of resource capacity by logistics providers in the Philippines which is one of the critical challenges the sector faces today because it leads to over-hiring.