The logistics automation market is growing every year. In 2023, it was valued at US $65.25 billion and is projected to reach approximately US $217.26 billion by 2033. It is no wonder since automation brings a host of advantages. In this article, you will learn about the benefits using virtual assistants in logistics can provide.

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What are virtual assistants in logistics?

Virtual assistants are software tools or applications that use artificial intelligence (AI), machine learning, and other advanced technologies. In the logistics industry, these virtual assistants play a crucial role in automating and optimizing logistics processes. They help companies streamline operations, improve communication, and manage inventory more effectively. By handling routine tasks, they allow logistics professionals to focus on strategic decision-making and more complex tasks.

The use of these tools naturally brings a wide range of benefits. What are some of their best perks? They can work anytime, even around the clock, and they won’t need three liters of coffee to keep going. Plus, they always stay cheerful and unaffected by everyday annoyances like an annoying neighbor or a grumpy tram driver.

What are the main roles of virtual assistants in logistics?

The most frequent reasons why companies decide to use virtual assistants are:

• cost savings,
• increased efficiency,
• error reduction,
• automation of routine tasks,
• enhanced customer service,
• and provision of real-time updates.

Here are specific examples of how virtual assistants are most often used in logistics.

1. Process data and information

Virtual assistants collect data from your company systems (ERP – Enterprise Resource Planning, WMS – Warehouse Management Systems, inventory systems, and others) and analyze it in real-time. This way, you gain useful information that allows you to make informed decisions.

Imagine that your virtual assistant analyzes transportation data and, based on the results, suggests the most efficient routes for shipping.

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2. Automate tasks

Robotic Process Automation (RPA) technology automates repetitive and regular tasks using software robots, allowing virtual assistants to efficiently manage logistics processes that are routine and occur consistently.

They can automatically handle tasks such as:

• Order Processing: receiving orders, confirming them, tracking the order status, and generating invoices.
• Generating Reports: creating regular reports on performance, inventory, or transportation.
• Document Processing: managing and organizing necessary documentation.
• Inventory Management: The virtual assistant will automatically notify you whenever the inventory level falls below your set threshold.

3. Make predictions

No, a virtual assistant won’t tell you what your future holds. However, imagine that, based on historical data and current trends, the assistants can forecast customer demand. This allows you to easily optimize inventory levels and minimize costs associated with excess or insufficient stock.

For example, during the holiday season, virtual assistants can predict an increase in demand for certain products. By analyzing sales data from previous years, they can estimate how much stock you will need. They will also notify you in advance to restock these items, ensuring you are well-prepared while preventing both the risk of overstocking and running out.

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4. Communicate and provide customer service

And last but not least, virtual assistants often function as chatbots. We understand that customers may not be thrilled when they have to communicate with a robot. However, there are advantages to interacting with a chatbot, as it:

• can respond for you, even at night,
• responds quickly,
• has access to the most up-to-date information,
• and if it doesn’t know something, it automatically forwards the query (so you don’t have to worry about it being forgotten).

Moreover, the data speaks for itself:

• 87.2% of consumers rate their interactions with bots as either neutral or positive.
• Chatbots can handle 30% of live chat communications and 80% of routine tasks.
• By 2028, the chatbot market is expected to grow at an astounding rate of 23.3% a year and reach $15.5 billion (masterofcode.com, 2024, Kateryna Cherniak).

Virtual assistants not only facilitate communication with customers but can also enhance overall logistics communication throughout the entire supply chain. This includes interactions with suppliers, distribution centers, and other parties involved.

What are the main benefits of logistics automation?

After reading about what virtual assistants in logistics can provide you, it’s clear that their use must come with a range of advantages. What are they?

1. Higher efficiency

All of the aforementioned activities ultimately lead to greater efficiency. Just the fact that you automate routine tasks, such as order confirmations, means that your employees won’t have to manually confirm each individual order and will have more time to focus on other (more complex) tasks. The same applies to real-time data monitoring and analysis. This will enable you to make quick decisions.

2. Lower costs

Even though your costs may initially be higher due to the expensive acquisition of software for automating logistics processes, it will pay off in the long run. You will save on:

• labor costs (as some tasks will be taken over by virtual assistants who won’t require a monthly salary),
• fuel costs through route optimization,
• and additional costs by eliminating errors while minimizing downtime.

And that’s not all. More money can be saved depending on the specific tasks you will use virtual assistants for.

Tip: Do you want to save costs on the load planning process as well? Start using the EasyCargo load planning software. EasyCargo allows you to maximize the use of cargo space and create a load plan in just a few seconds. This way, you’ll save space, time, and most importantly, money. Give EasyCargo a try with a 10-day free trial.

3. Increased accuracy

People make mistakes. That’s simply a fact. Whether it’s an error of having insufficient stock in the warehouse, sending the wrong goods, selecting the wrong route, or inadequately securing goods during transportation, the end result is always the same. It will cost your company money and you may even receive negative reviews from dissatisfied customers.

However, with the help of virtual assistants integrated into logistics automation software (such as Warehouse Management Systems (WMS), Enterprise Resource Planning (ERP), Inventory Management Software, and others) these errors are minimized. Virtual assistants can notify you about stock levels, track shipments, and provide real-time updates, ensuring that processes run smoothly. This not only reduces costly mistakes but also leads to satisfied customers and optimized operational costs.

Tip: If you want to have satisfied customers, you should also reduce delivery time. Read our article to learn how to do it.

Here are some interesting statistics from Conker (2023) regarding the costs of human errors in warehousing:

• Human errors account for about 80% of process deviations in industries with well-established procedures.
• The typical cost associated with a picking mistake falls between $20 and $60.
• Companies spend roughly 20% of their operational budget on managing and correcting human errors.

4. Better decision-making process

Virtual assistants provide you with enough data (both historical and current) that you can use to make decisions. Making informed decisions is always better than trying to predict the future with a crystal ball.

Imagine an electronics store. Christmas is approaching and it’s necessary to order a sufficient quantity of stock. Employees are debating which products will sell the most. If the store used a virtual assistant, it would quickly become clear how many and which products to order. The virtual assistant analyzes sales data from previous Christmas seasons, allowing the store owner to know right away which products sold the best. This way, they can easily place an informed order.

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5. Improved customer service

Just the fact that someone will be available for your customers 24/7, tirelessly and kindly answering all of their inquiries, is a significant improvement. As a result, real employees will have more time and patience to focus on the more complex customer requests.

What are the main advantages of using chatbots in customer care instead of humans:

• 24/7 availability: Your customers can get answers to their queries at any time of the day.
• Quick responses: Chatbots will address inquiries immediately so your customers won’t have to wait long for a reply.
• Friendly interaction: With a chatbot, there’s no risk of having a bad day that might affect how your customer is treated.
• Consistent answers: They provide consistent responses, ensuring that every customer receives the same information.

6. Better inventory management

Virtual assistants will continuously monitor inventory levels and automatically inform you of shortages or excess stock. This way, you won’t have to perform constant manual checks or worry about whether you have enough goods. Of course, virtual assistants are only a part of the entire robotics and automation process. For the process to function as described, there needs to be a connection to warehouse management systems (WMS).

Tip: If you’re interested in what automated warehouses look like in detail, with drones flying around scanning barcodes, read our article: Implementing Robotics and Automation in Warehouses: Increase Productivity by 25%.

Integration is the key to success

To effectively automate your logistics operations, it is important to connect individual systems and tools so they can exchange information with each other seamlessly.

Imagine your virtual assistant communicating with a customer about their order status. At that moment, it is crucial for the virtual assistant to be connected to a CRM (Customer Relationship Management) system to check the current status of the order and provide the customer with an immediate response.

Another great example is a situation where a virtual assistant manages the inventory of goods in a warehouse. When the inventory level for a specific product drops below a predetermined threshold, the virtual assistant must be connected to an ERP (Enterprise Resource Planning) system to automatically create an order to replenish the necessary stock.

Thanks to the integration of systems, there is no need for any manual intervention during these logistics processes.

Source: www.canva.com

Automate and optimize your logistics

There are many ways to automate logistics processes. From implementing WMS systems through robotic process automation to the Internet of Things (check out our article about IoT and other advanced technologies). However, in most cases, these are very costly investments. If you want to optimize your logistics operations but don’t wish to automate your entire warehouse right away, you can start with small steps.

One small step is using the EasyCargo software for load planning. The application will create a load plan in the blink of an eye while taking into account all restrictions and maximizing the use of available space.