At Veho, we're setting a new standard in logistics by leveraging a customer-centric delivery experience, superior technology, a disruptive operating model, along with data and AI. As CTO, I lead Veho’s technological teams as we optimize every aspect of delivery, from speed and efficiency to client and consumer satisfaction.
Being a “Tech Company” is not optional
Most established parcel delivery companies grew up during a time before modern computing platforms, mobile devices, and the gig economy. The USPS and national carriers fit this bill, as do most of the regional delivery companies, which started as trucking or courier companies and became regional parcel delivery carriers as e-commerce grew rapidly over the past 20 years. Companies like these, which have not brought technology development in-house and are not building their own merchant, customer, and driver technology, are not positioned to take advantage of data and AI. AI is already driving cost and defect reductions into a territory that non-tech companies are unable to compete with, and as this trend continues, these non-tech companies will face consolidation or will disappear.
AI is beginning to dominate the delivery sector
AI is increasingly recognized as a fundamental element in the logistics and delivery sectors. At Veho, AI is integral in transforming both the strategic and tactical aspects of our operations. Some of the below features are ideas we have or are on our roadmap, and some are built and running in production at Veho. Here’s how we’re thinking about AI and its benefits as we build out new features and robust AI-powered technology:
Better Customer Experience
AI improves customer experience by infusing higher precision, reducing defects, and automating quality control within the delivery process. Here are some examples of how AI can improve customer experience:
- Precise delivery timing: By aggregating and analyzing vast amounts of data, AI can provide customers with more precise delivery times than ever before. This predictive capability allows for a seamless and reliable customer experience, minimizing uncertainties and misdeliveries.
- Automated photo quality control: AI can scrutinize proof of delivery photos against specific customer instructions, ensuring that each delivery meets predefined standards and expectations—automating quality control and reducing human error.
- Language translation: AI-driven translation tools ensure clear communication across diverse linguistic backgrounds. This capability is crucial in providing personalized customer interactions and driver partner instructions.
- Customer and driver support: Most support queries can be resolved by an LLM, which inspects all aspects of a delivery—past successes and failures by customer, driver, or location—and uses a language model to assist in resolving issues.
Dynamic Pricing Strategies
Dynamic pricing strategies are a true differentiator in the fluctuating market. By leveraging AI, Veho can adjust our pricing mechanisms, allowing for real-time responsiveness to rapidly changing market conditions.
- AI-Powered price discovery: AI analyzes real-time data to dynamically adjust prices for the flexible portions of a supply chain, ensuring the optimal price point is identified based on supply and demand. This approach helps maximize efficiency without compromising service quality.
- Flexibility in supply chain operations: AI improves supply chain responsiveness by simulating various pricing and routing scenarios. Instead of a weekly operational plan based on client forecasts, an AI-powered orchestration platform makes continuous optimization decisions based on a myriad of factors. This allows a national supply chain to quickly adapt to market or environmental changes, enhancing operational efficiency.
- AI-powered rating engine: AI allows for the consideration of many factors that will impact the profitability of delivering a single package from point to point, allowing for dynamic pricing to be provided to merchants.
Operational Efficiency
AI fundamentally improves Veho’s delivery operations through automation and predictive analytics:
- Telemetry post-processing: Getting a delivery driver to the precise place to leave a package can shave seconds or minutes off of a delivery, and reduce defects. AI processes telemetry data from past deliveries to refine future delivery strategies and optimize routes. This results in faster transit times by ensuring deliveries are routed more effectively, and drivers are sent to the right place the first time.
- Dynamic supply planning and proactive capacity management: AI aids in dynamically planning for varying demand levels, helping manage capacity proactively and maintain service reliability even during peak periods.
- Identifying and simulating remote launch locations: Our AI models predict optimal locations for “exchange points” where Veho driver-partners can begin routes, based on a variety of factors including historical data and merchant forecasts. This strategy significantly reduces overhead costs and increases operational flexibility.
Through strategic AI integration, Veho is not just participating in the market; we are leading it, providing an unparalleled, customer-focused service that sets new standards for the logistics industry.
Wrapping Up
Let me highlight what makes Veho's approach so transformative: since we launched in 2018, we have distinguished ourselves by building highly adaptable, flexible, and scalable in-house technology systems that power our innovative operating model.
We have found that by layering AI technologies on top of our in-house technology stack, we are poised to create unprecedented cost and quality improvements that traditional national and regional carriers will be unable to match. This technology doesn't just fill delivery vehicles—it reinvents how we use them, making our operations more proactive, responsive, and efficient. We've seen firsthand how AI boosts our delivery accuracy and quality, which in turn drives our on-time delivery rates—a crucial measure for us and our clients. Plus, it's making our team vastly more effective, equipping them with tools that make their days more efficient.
AI is steering the future of logistics at Veho, guiding us towards smarter, more strategic operations. And we’re just getting started.
