Amazon delivers 1.6 million packages per day, and it may seem that other retailers don’t stand a chance. Bad deliveries drive customers away — in 2018, 8 out of every 10 customers took their business elsewhere if they had a poor delivery experience. That’s 34% more than 2017. At the same time costs keep rising, presenting unique challenges throughout the supply chain.
In 2017, U.S. businesses spent nearly $1.5 trillion on logistics and shipping; a 6% increase from 2016. U.S. businesses saw costs rise throughout the entire supply chain thanks to a number of different factors. The number one challenge for businesses? Customer expectations.
Three out of every four consumers would choose another retailer over Amazon if better options for shipping were provided. Meanwhile, 90% of customers expect a refund if shipping expectations are not met. To meet these high expectations, suppliers must determine ineptitudes and understand the causes. Thanks to loads of data about all of these issues, artificial intelligence is being implemented to target inefficiencies in the supply chain.
Inefficient and unnecessarily expensive transportation costs a lot. In 2018, empty trucks made up 16% of total mileage for a single U.S. company. Algorithm-optimized delivery routes for distance, fuel use, and time results in a reduction of CO2 emissions by 100,000 metric tons per year and $400 million in avoided costs, and these savings can make a huge impact on the supply chain.
Find out more about streamlining the supply chain with AI from the infographic below.
Brian Wallace is the Founder and President of NowSourcing , an industry leading infographic design agency based in Louisville, KY and Cincinnati, OH which works with companies that range from startups to Fortune 500s. Brian also runs #LinkedInLocal events nationwide, hosts the Next Action Podcast , and has been named a Google Small Business Advisor for 2016-2018.