AI technology essential for future-proof parcel logistics

Berlin/Norderstedt, April 24, 2024 - By using artificial intelligence (AI), companies in the courier, express and parcel industry (CEP) can optimize their processes, save costs and position themselves for the future. These are the findings of the study "Artificial Intelligence in the Courier, Express and Parcel Industry", which was conducted jointly by the German Parcel and Express Logistics Association (BPEX) and the Lufthansa Industry Solutions (LHIND).

Evaluation of AI use cases

The study focuses on various practical AI use cases in the parcel industry. Using a specially developed methodology, the authors identify numerous practical examples for the parcel industry and present and evaluate a selection of them. Examples include the intelligent scheduling of parcel pick-ups, dynamic route and intelligent time slot optimization, assistance in finding a parking space, and automatic evaluation of customer feedback.

Skills needed to unlock the potential of AI

The authors also outline the skills that parcel companies will need to realize the potential of AI. Non-technical skills at the organizational level are also critical to success. For example, decision makers need to be able to evaluate AI solutions from different perspectives and decide on their use. At the same time, planning and implementation require technical expertise as well as skills for effective coordination and communication, and sound project management.

Build or Buy IT Solutions?

The study also addresses the question of whether IT solutions should be developed in-house or purchased, and what competencies, roles and skills should be available for implementation and use in organizations. Above all, the authors recommend that AI should always be considered in a goal-oriented way, so that projects can be started in a focused manner, scaled quickly, and used in a practical way. According to the study, this strategic approach, coupled with the digital skills that companies urgently need to acquire, will ensure the future success of the parcel industry.

Companies in the CEP industry get a comprehensive overview of the current state of the technology and the opportunities for parcel and express logistics, especially on the last mile.

Ralf Struckmeier
Vice President Logistics at LHIND

Opportunities for the parcel industry

"Based on the technological expertise and project experience of BPEX and LHIND, we have compiled many use cases that can already be implemented with artificial intelligence in the CEP industry today," says Ralf Struckmeier, Vice President Logistics at LHIND. "This gives companies in the CEP industry a comprehensive overview of the current state of the technology and the opportunities for parcel and express logistics, especially on the last mile."

AI is at the top of the list of key strategic decisions for parcel service providers that will change the business of the parcel industry.

Marten Bosselmann
President of BPEX

AI is essential for the last mile

"AI is at the top of the list of key strategic decisions for parcel service providers that will change the business of the parcel industry," said BPEX Chairman Marten Bosselmann. "Especially in the last mile, which is the focus of this study, AI plays an immense role for companies - and its importance will continue to grow. The last mile is the most expensive and labor-intensive part of the parcel supply chain. AI has great potential to increase the efficiency of parcel delivery and make the work of delivery drivers easier and more enjoyable. If you don't want to be left behind in the competition for good employees and efficient and sustainable concepts in the future, you can't afford to ignore this technology".

Founded in 1982, the German Parcel and Express Logistics Association (BPEX) represents the interests of the courier, express and parcel industry in Germany. Approximately 4,000 companies provide nationwide delivery from the Hallig to the Alm, in the city and in the country. The entire industry in Germany currently generates an annual turnover of 26 billion euros, employs around 258,000 people and transports around 4.15 billion shipments per year.

Study Artificial Intelligence in the Courier, Express and Parcel Industry (in German)
pdf, 3 MB

The study by the German Parcel and Express Logistics Association (BPEX) and LHIND shows how CEP companies can optimize their processes, save costs and position themselves for the future with the help of AI.

Lufthansa Industry Solutions is a service provider for IT consulting and system integration. This Lufthansa subsidiary helps its clients with the digital transformation of their companies. Its customer base includes companies both within and outside the Lufthansa Group, as well as more than 300 companies in various lines of business. The company is based in Norderstedt and employs more than 2,500 members of staff at several branch offices in Germany, Albania, Switzerland and the USA.