Introduction
recent years,"AI"or"Digital Transformation (DX)The term "AI" often becomes a hot topic, but many people find it difficult to imagine how it actually works. In particular, the use of AI is considered an urgent necessity in the "international logistics" industry, which forms the foundation of our lives.
This article details the challenges faced by actual freight forwarding companies and how they solved them using AI.
Breaking free from the international logistics industry's reliance on "intuition and experience"
First, the international logistics industry has long faced the challenge of relying on methods based on "intuition and experience." Freight forwarders, who act like travel agencies, propose transportation plans and handle various procedures on behalf of shippers, but digital transformation (DX) in this area has not progressed at all.
The reasons for this include the large number of stakeholders involved, the frequent handling of irregular situations, and the frequent occurrence of problems. For this reason, we have implemented a "customer-specific approach," assigning a dedicated person to each customer and having one person handle all stages of the process.
As a result, the industry was left behind by the wave of digital transformation for 50 years. However, with the volume of goods increasing while the workforce is declining, a system was needed to quickly train inexperienced individuals into productive members of the workforce.
Therefore, we adopted a strategy of promoting DX (Digital Transformation) by "visualizing" processes to reduce communication costs, demonstrating their convenience with our own system, and then expanding to other companies. Our efforts were recognized, and in 2022, we acquired a major transportation company and entered the customs clearance business.
Multi-layered AI agents achieve 90% efficiency improvements in business operations.
This is a crucial point. The company has realized a "multi-layered AI agent concept" in international logistics, combining a "command center AI" and "specialized AI."
The role of the command center AI:
- Automatically receive customer communications
- Understand the context of the subject line and body of the message.
- Check which team has received what request.
The role of specialized AI:
- Schedule update
- Arranging a drayage vehicle
- Making various arrangements, such as contacting the warehouse company.
In the previous system, the scheduling team had to keep a close eye on customer communications throughout the day and assign tasks to specialized teams as they came in. However, by introducing an AI command center, we succeeded in automating approximately 70% of the tasks, which not only reduced man-hours but also improved the speed of our response to customers.
One particularly significant achievement is the automation of 90% of our overseas agency-related operations. This is an astonishing figure and demonstrates the extent to which AI can be put into practical use.
The key is to build a system that assumes failure, rather than aiming for 100% accuracy.
What's noteworthy here is the company's perspective. They believe that "AI can be effectively utilized without requiring 100% accuracy."
Humans cannot achieve 100% through human intervention. Instead of leaving everything to AI, it's crucial to build a system that anticipates failures and considers how to address them.
Furthermore, while some believe that engineers are the ones who should create useful AI for business operations, it has been pointed out that those who understand on-site operations should take the lead and work together with engineers to develop it.
Supplementary information: The importance of standardization
In the field of international logistics, communication with over 30 stakeholders is necessary, including shippers, overseas agents, carriers, customs officials, and warehousing companies. Some tasks require up to 36 different types of documents and 240 copies, resulting in documents becoming buried amongst paper, phone calls, and personal emails.
Around 2024, when we started the standardization project, the topic of generative AI had already begun to gain traction, and we proceeded with the development of AI-OCR functionality, the establishment of a specialized department called "AI Advanced Lab," and the development of the AI customs clearance cloud "Shippio Clear."
Summary
What lessons can we learn from real-world examples of DX in the international logistics industry? It's the importance of correctly understanding the essence of technology and focusing on solving on-the-ground challenges.
Providing a "different tomorrow" to people who think, "It would be fine if today was the same as yesterday," is the path to true business growth. In the use of AI, what is most important is not perfection, but a "continuous attitude of trial and error" and "listening to the voices of those on the ground."
In our increasingly digital society, we must not be swayed by technology, but instead seek directions that leverage our company's strengths. To achieve this, starting small and creating successful experiences is an important first step.
