Articles
4
min read
How Dispatch’s Delivery Technology Uses Artificial Intelligence
Andrew Leone
Published on:
August 14, 2024
Updated on:
Published on:
August 14, 2024
Updated on:
Artificial intelligence (AI) is like when blockchain was being used, sometimes it can mean different things to different people. From my perspective, AI it’s kind of a catch-all term that's used for anything that’s automated. At Dispatch, we look at technology holistically as systems work together to orchestrate the entire final-mile delivery process.
Dispatch develops proprietary code and runs data models with integrated machine learning. Currently, the Dispatch platform learns based on information added into the system — delivery times, operational costs, traffic patterns, etc., and we can adjust the models as needed and continue to drive delivery efficiency. AI takes all of that data and looks at it in different ways, and it tells us what to do based on the inputs.
Dispatch uses sophisticated machine learning and algorithmic models to maximize business delivery efficiency. Now, we’re building an AI wrapper around all of our data sets to synthesize data and generate it for customers.
We’re building AI into our delivery platform to help our customers better understand the last-mile component of their business. They can use their own data sets in a privatized way to look at metrics like cost per stop and efficiencies by route and ask our system whatever they’re trying to accomplish.
The goal here is that if you’re using our platform holistically, we store and secure your delivery data (in a privatized way, so it’s customer by customer), and then you can put in your business objectives and have the system tell you what is optimal.
What we aim to achieve here is customers saying, ‘Hey I’m trying to build efficiency for this part of town, what’s the best way to do that?’ and the Dispatch AI will provide recommendations with customers’ own data, based on what’s in their best interest. Our goal is to make last-mile easy and efficient. Every business is different, it’s not a one-size-fits-all so the idea is to have an intelligence system that can curate customer-specific information.
Many customers, unfortunately, because last-mile delivery is nuanced, don’t understand metrics like their cost per stop, cost per mile, and speed — they don’t have their fully loaded costs. A lot of times you’ll get customers saying, ‘Yeah we did the work and we know what our cost per stop is using our 16-foot box truck.’ There’s a lot more data to uncover because not every delivery is equal and so by having more intelligence that can dynamically look at all of these variables, you can get a much better idea of last-mile logistics and operations.
The downside is cost — true AI is really expensive to run and it’s changing rapidly. I would argue it’s also a major distraction for most of our customers doing it on their own. However, the benefits are massive. Especially for delivery management, there’s so much data, it’s fragmented, and it’s different delivery every time.
I don’t know how anyone can run manual processes and do a great job — it’s tough to maximize last mile and you’re only as good as the data you have. So without a delivery technology platform like Dispatch providing advanced data, insights, and real-time reporting, it’s hard to optimize delivery logistics.
Today, Dispatch has AI infrastructure and we’re building on top of that to optimize the last mile industry. In doing so in a customer-centric way, we let customers take the driver's seat by like letting them use our engine in a privatized setting, giving them more control over their delivery data and getting outputs tailored for their business.
In the future, I think AI will integrate access to data across the supply chain. If the data is there and you have visibility into each stage of the supply chain, from manufacturing to inventory all the way to the end consumer, the more information you give the system, the further it will optimize the entire supply chain for your business. AI is only as good as the information it has and what it can be trained on.
To learn more about the Dispatch delivery platform, visit our website at www.dispatchit.com.
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