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Importance Of Chatbots For Logistics And Supply-Chain

Table of Contents

Reasons for chatbots for logistics

Logistics are the most essential part of any company’s supply-chain management, involving transportation, storage, and distribution. To simplify operations, businesses are adopting the latest customer support technology: Chatbots.

It is shaping the future of logistics interactions along with many other industries, creating smooth engagement between customers and companies. Chatbots for a logistics company is substantial in customer-related operations as well as supply-chain operations.

Locobuzz provides chatbots and other multi-channel integrations that improve the overall productivity and team coordination across the whole logistics and supply chain management in the business.

Why must the logistics industry integrate chatbots?

The conversational AI-powered chatbots save the time and money of businesses by maintaining front-end and back-end communication and replacing manual management operations of inventories and transportation with automated chatbot commands.

Whether it’s tracking cargos, handling product inventories, CRM updates, team coordination, meetings schedule, warehouse, or delivery schedules, chatbot integration helps the logistics and supply chain industry to monitor performance and Customer Experience.

Here’s how the logistics and supply chain industry can improve business and customer engagement with the help of chatbots:

Warehouse matters & navigation

Chatbots can construct warehouse automation that can streamline inventory management and warehouse operations. For example, you can pick up and locate your goods among a thousand others just by asking the chatbot and it will send you the precise rack number. It can facilitate site navigation for your customers and improves customer experience and lowers the bounce rate.

Also, Read Benefits of a Chatbot for the Finance Industry

Order management & amendments

Chatbots streamlines order management right from receiving orders to the process of its delivery. It enables tracking the delivery status and sustaining the supply-demand chain. It can also process order amendments, review product conditions, and status.

So, if there are any changes in the order like cancellation or delivery amendments, chatbots can acquire order information from the company’s database through the tracking number of the order provided by the customer and assist them accordingly.

All-time instant & accurate response

As per the 2018 State of Chatbots report, 64% of online customers believe that 24-hr assistance is the best aspect of chatbots. A chatbot is available all time, irrespective of country time zones to respond to customers accurately about their orders and deliveries.

An instant customer support service in the logistics industry can assist dealers and manufacturers to reduce the fat out of supply chains and time duration for replacing the depleted inventory. It can prevent stock-outs and improve the quantity of inventory turns when a retailer or manufacturer converts its entire inventory.

Feedback & complaints

Every industry’s development is dependent on customer feedback. In the logistics industry, it is all about the service provided for the storage, distribution, transportation, and deliveries. Chatbots can generate creative ways for the customers to respond with feedback, like how the company improves the product and service. Chatbots accept customer queries, issues, complaints and assist them with possible solutions. This adds value to the core service that customers expect and satisfies them.

Receiving delivery requests & answering faqs

Logistics chatbots can receive delivery requests from customers, take the details of the order, and process it. It can also issue a receipt for your order. It supports booking the place for shipment, time, and online tracking. With any documentation work, users can provide all the details of the concerned products that need transportation and pay online.

Most logistics companies also have FAQs, chatbots can provide automated answers to common questions in less than a minute. Thus, saving customers’ time and effort from getting their answers among the list of FAQs.

Shipment tracking & shipping condition

In logistics transportation, chatbots can conduct shipment tracking faster than the online process of filling forms on the company’s website and waiting for the needed information. As we know the order visibility and its status is valuable in customer service, chatbots can prevent customers from the long offline queue to the places and deliver real-time tracking of the order just over a messenger.

It also provides opportunities to the end client for preparing the things that need transportation. This prevents problems where the customers get uncomfortable conditions for carrier in delivery offices.

Assigning tasks

A chatbot can compete or processing simple routine tasks like responding to a low-priority query by itself. Which helps the human agents to focus on more complex issues. However, whenever a request is made for transportation or shipment, the chatbot assigns the task to the appropriate staff for further actions.It notifies the end client about the following request status.

Data analytics

Companies can access and check customer’s orders using chatbots. Companies receive all the data of the orders placed by the customers through chatbots which can also be linked with the data provided by other sources. Logistics chatbots enable you to deal with all data linked to customer orders in real-time i.e, combining IoT (Internet-of-things) technology with the chatbots to ensure your managers get access to all the data quickly. This confirms an easy workflow in your warehouse.

Also, Read How Chatbots are Revolutionizing Travel & Hospitality Sectors

Imagine having all the smart devices in your office connected and sharing customer’s data. This keeps everybody in the department in the loop about any modifications in the working situations in your warehouse or about any out-of-stock items.

As the Locobuzz chatbot, it collects, organizes, and disseminates customer data quickly and easily so that support teams can use the consumer insights to improve customer experience and provide solutions to avoid the probability of future problems. With the help of algorithms, chatbots can organize customer data from pivotal digital channels and networks across the web and evaluate their sentiment, topic categories, location, and more.

Notifications & information

Companies track their vehicles, their routes, delivery status, etc. with the help of chatbots.

You’d require no transportation app for keeping track of your driver’s location for managing the orders and delivery routes. Simply ask your chatbot about vehicles idle or closer to a pickup point so you can schedule duties accordingly.

Also, you can send delivery notifications and updates to your customers regarding the company offers or customers’ orders. The process of chatbot is so easy that customers revert instantly. Also, the logistic industry generally includes a massive group of workers. With the help of chatbots, companies can deliver effective company-wide messages and information to all the workers all at once.


Chatbots can manage and execute all kinds of online business interactions that are presently dealt with by human staff. For cost savings, convenience, and simplified workflow in the logistics industry, a chatbot is essential. It helps immensely with productive operations for consumers as well as the supply chain management end.

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