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How Automation is Shaping the Dispatch Management Industry

By Shilpi Chhabra 27th May 2021

Automation is shaping the dispatch management industry how? Automation has been one of the most debatable topics for every industry in the past few years. The world has witnessed a paradigm shift and everything about this revolution concerns technology. From simply assisting, technology is now controlling the way we live, interact, shop or travel.

It wouldn’t be wrong to say that it has transformed every aspect of our lives with creative intentions such as voice automation, chatbots, drone deliveries, robot surgeons, self driving cars etc.

From fearing the big change, industries have reached a point where they need automation to thrive in the increasingly challenging markets.

The dispatch industry, for instance, is experiencing something of a renaissance. The application of AI has reached new heights ever since the pandemic shook global operations. Artificial Intelligence and machine learning have taken over most of the industrial operations, leading us towards the new normal. 

In this article, we will discuss how automation and AI have revolutionized the on demand industry completely. However, first, let’s talk about some of the most common AI and machine learning trends. Let us know how they have changed the world for the better, with faster, efficient, affordable and reliable services.

  • Machine Learning is a subset of artificial intelligence that is self-programmed and well-equipped to make data-driven decisions for your business. Service apps using machine learning algorithms help customers reach their destinations faster and have a better shopping experience. 
  • Internet of Things: Internet of Things is a network of physical devices that is used to monitor or exchange data through the internet. This enhances real time visibility of goods and transparency across the supply chain. 
  • Predictive Intelligence: It is the ability of an app to deliver solutions or relevant communication based on consumers’ order history, location, previously visited platforms, websites etc. Predictive intelligence algorithms make good use of the collected data to improve the shopping experience for customers. Companies also need accurate order predictions to speed up the delivery process. 
  • Digital Voice assistants: Alexa, a voice-based service by Amazon, answers questions about shipment details and other whereabouts. It is a simple digital voice assistant that answers all your queries instantly. 
  • Big Data: AI helps build a digital ecosystem for managing large sets of data. Retailers and eCommerce platforms largely benefit from such vast data repositories. 
  • Cloud computing: By accessing and sorting heaps of data through the internet, companies save time and a substantial business cost. It is also a more reliable and inexpensive way of storing customers’ data. AI algorithms further make use of the collected data to enhance customer satisfaction.

What are the applications of AI in logistics/dispatch management? 


Logistics require significant planning, right from efficient coordination amongst suppliers, agents and customers to connecting different units within the enterprise. With the help of machine learning solutions, enterprises can facilitate planning activities with ease. Forecasting demand also minimises errors and eliminates the risk of running out of supplies or dispatch management of vehicles. 

Accurate demand prediction: The AI-powered dispatch management solutions help industries make accurate demand predictions by using real-time data and historical trends. With accurate predictions comes better manpower planning and efficient use of dispatch management of vehicles. This saves time, cost and resources for the business.

Better supply planning: Accurate demand predictions result in better optimisation of the supply chain flow. With efficient supply planning, businesses will use fewer resources since dynamic planning minimises waste and maximises the productivity of dispatch management. 

Smart Warehousing 

It’s the warehouse where the actual processing happens, but gone are the days of running from one place to another to make things happen. Businesses have now started adopting AI technology for simplifying warehouse activities with smart dispatch management. Although the adoption rate is at its nascent stages at the moment, we’re expecting a surge in the coming months. Here’s how businesses have started simplifying their warehouse operations: 

  • Warehouse robots: Amazon, the leading eCommerce marketplace in the world, had acquired Kiva systems in the year 2012 and later changed its name to Amazon robotics in 2015. The e-commerce giant has more than 200,000 robots working in their warehouses. Their job is to assist the human workforce in picking, sorting, transporting and stowing packages. 
  • Damage detection: Businesses also use computer vision technology to identify damages and take necessary action or formulate an action plan for future manufacturing. Machine learning powered tools also predict potential machine failures in manufacturing units with the help of real time data from IoT sensors installed in machines. This way, technicians can fix the machines before the failure occurs. 

Analytics and communication in dispatch management 

  • Pricing Software: The on demand service apps today are equipped with AI enabled pricing software that adjusts price based on the changes in demand, supply and competition price. 
  • Route optimisation: AI helps businesses pick the fastest fuel efficient routes for agents that speed up the shipping process and reduces the shipping cost.  
  • Chatbots: Customer service plays a vital role in the success of any business. With the help of virtual assistants or chatbots, customers can address their queries in minutes. Better communication and immediate redressal upgrade the overall customer experience. Chatbot analytics metrics also enable businesses to understand their customers better so that they can enhance their delivery or shopping experience. 

Last mile delivery 

Self driving cars and delivery drones have become the modern agents for the on demand industry. Amazon, the leading eCommerce giant, has finally sought approval to deliver packages by drones. Delivery drones will be highly beneficial in cases where ground transfer is not possible or when the products have a short life span such as pharmaceutical products. 

AI-enabled applications such as machine learning, predictive analysis, cloud computing have enhanced the level of customer engagement and personalisation in  every industry. The complicated tasks and heaps of data that previously took days or even months to sort are now resolved in a matter of seconds, eliminating the need for huge data centres. The industries are now more independent, productive, reliable and quicker.

While businesses worldwide have support the technology in remarkable ways, its impact on the on demand industry has been paramount in the past one year. Here’s how! 

Smarter & informed business decisions 

AI technology enables business operators to analyze trends and consumer behavior/feedback from the stock of data and information. These trends are factored in before any business strategy is devised.

Predictive analysis has become a major revenue stream for on-demand service apps. It’s the reason why you see multiple options by typing just one word on almost every app that you use for buying groceries, food, clothes and other essentials. 

Additionally, cloud computing has eliminated the need for huge data centers.  Safety of customers’ data always comes first, and AI driven apps are used today to ensure that. All of this collectively helps industries make smarter and informed decisions that could benefit both the business and its customers. 

The power of personalization 

 Customers always like services that are specifically designed to cater to their unique requirements. Increased personalization enhances customer engagement, and this way, businesses benefit from repeated orders.

AI enabled apps take multiple factors into account to personalize services for its customers based on their location, frequently visited platforms and last orders or purchases. Considering all these factors, they design special offers for customers at a time when they are most active on the app. A personalized mobile app performance results in better business. 

Increased consumer engagement

The success of an on demand business depends on the level of consumer engagement and the overall efficiency of the dispatch process. In order to get more efficient, business operators need to understand how consumers interact with their app. This can be done with vital customer feedback and external platforms such as Google Analytics. With Analytics, one can easily decode customers’ interaction with the app or website in all aspects. 

The valuable insights help in identifying potential opportunities in the markets that can be used in launching a new service or modifying existing policies. User feedback and reviews can also be used to bring changes in the app services, and AI helps sort through these reviews to suggest server modifications. 

Faster delivery, happy customers 

Delivering or arriving at a destination faster means happier customers and definitely better business response. In fact, the speed of the delivery is cited as a key performance indicator for any service app. Customers appreciate the convenience, instant alerts and swift transactions. AI enabled apps take multiple factors into account to promote same day deliveries.

They pick the fastest and shortest routes for its agents by predicting traffic delays and other possible obstacles saving minutes off the delivery time. Route optimization provides a clearer picture of delivery routes, allowing agents to pick maximum orders in a day. 

Virtual assistance 

Just like instant orders, customers want immediate decisions too. To address this, companies have started using artificial intelligence for round the clock virtual assistance. You must have seen chatbots popping on your screen every time you open up a website or the help tab on your service app.

The AI models are trained with accurate responses, so all you need to do is tap on the problem statement, and an automated response will guide you to the right actions. While many are still not convinced by the idea of talking to a machine, chatbots are getting better at service every passing day.

What does the future hold for automation in logistics? 

As organisations seek greater efficiency, the key automation trends are being pushed to a whole new level. The latest DHL Logistics Trends Radar report suggests a significant rise in the number of investors investing in logistics technologies that are driven by data analytics, artificial intelligence, robotics and IoT. The report also says that the pandemic has made companies use technology like never before. 

McKinsey estimates that in just another decade, most dispatch operations will be automated. Although we’re witnessing half the revolution with high end solutions in top dispatch systems like Tookan, we’re yet to experience the other half. The report anticipates fully automated high rack warehouses, autonomous vehicles and managers coordinating the human robot operations wearing AR glasses.

While much of the same day delivery requirements are efficiently met today, more automation in collection, packaging and sorting will fasten the process in the coming years. 

The use of predictive logistics minimizes the time and resources spent on the last mile. It only enhances the delivery experience for the customers. Automation has changed the face of the logistics industry, but none of this would have been possible without human collaboration.

The times ahead call for a change, not just for the industries but also for the on demand staff. With AI already at its new heights, human machine collaboration and an adaptive approach will present great opportunities for the industry. 

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