TL;DR:
- UPS employs AI through DeliveryDefense to combat package theft.
- DeliveryDefense analyzes two years of UPS delivery data, loss patterns, and address specifics to generate a delivery risk score.
- Retailers use this score to recommend optimal delivery methods.
- Package theft is a significant issue, costing $2.4 billion in stolen goods in 2022.
- DeliveryDefense provides a “Delivery Confidence Score” for successful deliveries.
- Low-scoring addresses can suggest in-store pickups or delivery to UPS Access Points.
- DeliveryDefense is accessible to businesses of all sizes with API integration or a web version.
- UPS My Choice program allows consumers to receive delivery alerts and provide specific delivery instructions.
- Over 100 million consumers already use the UPS My Choice program.
Main AI News:
In the ever-evolving landscape of e-commerce, the battle against package theft, often perpetrated by the notorious “porch pirates,” rages on. However, shipping behemoth UPS has raised the bar by harnessing the power of artificial intelligence (AI) to tackle this growing menace, ensuring consumers receive their orders intact and on time.
UPS has partnered with UPS Capital to develop a groundbreaking program called DeliveryDefense, a true game-changer in the world of package delivery. This cutting-edge system leverages AI and machine learning to craft a meticulous delivery risk assessment, drawing from a treasure trove of two years’ worth of UPS delivery data, historical loss patterns, and address specifics. The result? A comprehensive score that retailers can wield to suggest the most foolproof delivery method, guaranteeing packages reach their intended recipients unscathed.
Mark Robinson, President of UPS Capital, underscores the proactive nature of this innovative approach, stating, “By proactively identifying and addressing potential shipping issues, DeliveryDefense data increases the confidence in a successful delivery. Retailers can recommend alternative delivery options, such as UPS Store locations or other convenient Access Points, to optimize delivery outcomes.”
The urgency of such a solution cannot be overstated, given the alarming rise in package thefts. According to a study conducted by Security.org, as of 2022, a staggering 49 million Americans had fallen victim to package theft in the past year alone. The median value of stolen merchandise stood at $50, resulting in an eye-watering total of $2.4 billion in lost goods last year.
DeliveryDefense operates by analyzing billions of data points culled from UPS’s extensive historical delivery records to generate a “Delivery Confidence Score,” ranging from 1 to 1,000. This score serves as an invaluable indicator of the likelihood of a successful delivery.
In cases where a specific delivery address receives a discouragingly low score, retailers can step in with recommendations. They may advise customers to retrieve their purchase in-store or have it conveniently dispatched to a nearby UPS Access Point, which can be conveniently located in retail establishments or UPS Stores.
What makes DeliveryDefense truly remarkable is its accessibility. This pioneering tool is available to businesses of all sizes, seamlessly integrating into a merchant’s order fulfillment system through an API. Smaller enterprises can also benefit from a web version of the tool, ensuring that the advantages of AI-powered security are accessible to all.
For consumers, peace of mind is just a click away. Through the UPS My Choice program, customers can receive timely alerts via text or email about their impending deliveries. This interactive tool empowers consumers to provide specific delivery instructions, whether it’s their residence, an alternative location like their workplace, a neighbor’s or relative’s home, or a nearby UPS Access Point. With over 100 million consumers already utilizing the UPS My Choice program, it’s clear that this revolution in package security is making a resounding impact.
Conclusion:
UPS’s AI-driven solution, DeliveryDefense, is a game-changer in the fight against package theft. It not only enhances delivery success but also reflects the company’s commitment to adapting to the evolving e-commerce landscape. By addressing a critical pain point for consumers, UPS solidifies its position as a leader in the market, offering both convenience and security in the delivery process. This innovation could set a benchmark for other logistics providers looking to enhance customer trust and satisfaction in the digital shopping era.
