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SCM452J_2022 

Supply Chain Digitalisation 


& Artificial Intelligence

  
How AI is used in Last Mile Delivery?​

Group members​

Duojiao Li​

Jiatong Liang

Kush Kumar​

Qiqi  Chen​
CONTENT

01
Part one
02
Part two
03
Part three
04Part four
Last Mile Delivery
(LMD) AI in Alibaba's LMD AI in LMD Challenges of
OCR during
Here COVID
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ADRESS IDENTIFICATION the topic, which can be beautified the topic, which can be beautified
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INTELLIGENT DISPATCH
ORDER DISTRIBUTION
ROUTE
SHCEDULE&OPTIMIZATION
REAL-TIME TRACKING AND
TRACING
NATURAL LANGUAGE &
CHATBOT
LOCKER
Last Mile Delivery:
Free, fast shipping, flexible delivery
options, and quality customer service.

Why it is Important?

• Gain Competitive advantage: fast, on-time, and flexible delivery


make better customer satisfaction, leading to a competitive
advantages  to other online seller.
• High cost impact on e-commerce business: Last-mile deliveries
can account for up to 53% of the total cost of shipping.

Definition
Last-mile delivery is a term used for transportation of
merchandise from the nearest distribution hub to the
final destination, such as a home or business. 
How AI is revolutionizing last mile delivery
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AI has the potential to transform last mile delivery by providing real-time data and analytics, optimizing routes, predicting
demand, and enhancing the overall customer experience. 

1.Predictive Analytics
2.Predict Future demands
3. Route Optimization
4. Dynamic Routing
5.Predictive Maintenance
6.Delivery Tracking and Communication

1.As AI technology continues to advance, it has the potential to


revolutionize last mile delivery even further. 
2.AI can also help companies reduce the environmental impact of their
last mile delivery operations, by optimizing routes and reducing the
number of delivery vehicles on the road.
AI technologies used in last mile delivery
1. Machine learning and predictive analytics

2. Natural language processing and chatbots: They allow customers to schedule and reschedule


deliveries, change delivery locations, and make bulk orders through messaging
platforms. 
4. Robotics and automation :
Delivery robots can be used to deliver parcels,
groceries and even hot meals from delivery hubs,
larger delivery vehicles, or even what’s commonly
Autonomous vehicles and drones :
Drones are more suitable for deliveries to remote locations in suburban or rural areas and can be
known as “dark stores”, i.e. stores that are closed to
invaluable in emergency deliveries, such as, for example, of medical supplies or disaster relief aid or the public and which serve as storage facilities in close
equipment. proximity to customers’ homes.
Drones’ radius of operation can be larger and they can also be faster but they’re unsuitable for
densely populated areas and their payload is usually smaller. 
Faction is developing right sized
delivery vehicles – of various
sizes and shapes – to solve the
challenge of urban delivery and
personal transportation.
Faction’s innovative driverless
technology platform addresses
the rapidly growing demand for
reliable, cost-effective and
scalable last-mile enterprise
delivery services and shared
mobility.

the FedEx SameDay Bot —


an autonomous delivery
device designed to help
retailers make same-day and
last-mile deliveries to their
customers.
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customers is the direction of our work customers is the direction of our work customers is the direction of our work
and the yardstick of value evaluation. and the yardstick of value evaluation. and the yardstick of value evaluation.
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Route optimization and scheduling
https://www.alibabacloud.com/customers/cainiao-lo
gistics?spm=a3c0i.11535664.7894015110.5.3d7b1f0a
AIt7eP
 
https://baijiahao.baidu.com/s?
id=1689515135181849480&wfr=spider&for=pc
Autonomous delivery
OCR Technology OCROCR
-Improve outbound of last mile delivery efficiency
-Improve inbound of parcel collection point
reception
Intelligent adress identification
-Intelligent order distribution
智能外呼
Locker:
http://ah.spb.gov.cn/ahsyzglj/c102812/
c102814/202303/927f2ead88f1457da1a4214c2bf614
ed.shtml
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The risks of using AI in the last mile delivery

Data security
AI rely on sensitive customer information and other delivery-
related data. Therefore, it is crucial to secure this data from
unauthorized access, hacking, or theft.
Technical issues
AI can experience technical failures such as system crashes,
software bugs, and connectivity issues. These issues can lead
to delayed deliveries and negatively impact the customer
experience.
Complexity
AI can increase the complexity of the delivery process, leading
to operational inefficiencies and errors that can affect the
customer experience.
Job disruption
AI could lead to significant job losses, especially for drivers and
delivery workers, which can have economic and social
impacts.
Lack of human oversight
AI cannot make ethical judgments or decisions. Therefore, it is
essential to have human oversight to prevent AI from making
decisions that could harm customers or break regulations.
Fairness and equity AI algorithms can perpetuate existing
biases in the data they are trained on,
leading to discriminatory outcomes in
delivery services.

Privacy concerns AI-powered delivery systems often


collect and store personal data, such as
delivery addresses and purchase
histories.

Transparency and accountability AI-powered delivery systems are often


complex and opaque, making it difficult
to understand how decisions are made
and who is responsible for them.

Fair impact on employees & consumers Delivery robots are used to replace
human workers, this could have
negative consequences for workers' job
security and livelihoods.

Environmental impact The increased use of delivery vehicles and


drones powered by fossil fuels can
contribute to environmental issues, such
as air pollution and carbon emissions.

Safety risks Delivery robots and drones powered


by AI can pose safety risks to
pedestrians and other users of public
spaces.

The Ethical Issues of Using AI in Last Mile Delivery


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and the yardstick of value evaluation. and the yardstick of value evaluation. and the yardstick of value evaluation. and the yardstick of value evaluation.
Achieving customers is to achieve Achieving customers is to achieve Achieving customers is to achieve Achieving customers is to achieve
ourselves. ourselves. ourselves. ourselves.
04Part four

仓库安全
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Covid -19 and Last mile delivery

During covid Use of AI after Covid

1. SaaS Platform Enhancement-Intelligent and flexible SaaS platforms


1. Unbalanced Demand achieve end-to-end visibility, essential for last-mile deliveries, and
2. Growth in home flawless coordination between multipoint pickup and delivery
locations.KEYWORD
deliveries 2. Allocation Regulation -artificial intelligence, allocation regulations
3. Delivery experience is have become a critical part of every logistic business.
AutomationKEYWORD
in the Environment-industries are incorporating
a priority 3.
automation into their process such as drone deliveries to improve
4. A shift in delivery last-mile KEYWORD
delivery.
timing 4. Inventory with Real-Time Insights-Suppliers can forecast the
demand and supply curve and provide inventory with up-to-the-
5. Types of goods KEYWORD
minute information on orders placed and canceled.
delivered 5. Cost-effectiveness and increased skilfulness-AI reduces the need for
6. Priority of Safety human intervention while also speeding up a variety of processes.

 
THANKS

感谢观看
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Reporter :春秋视觉

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