Shipping giant UPS is utilizing artificial intelligence (AI) to combat the growing issue of package theft by “porch pirates” and ensure that consumers receive their orders promptly.
Enhancing Delivery Security with AI
UPS Capital has developed a program called DeliveryDefense, which harnesses the power of AI and machine learning. This innovative system utilizes two years’ worth of UPS delivery information, historical loss patterns, and address characteristics to generate a comprehensive delivery risk assessment.
Streamlining the Delivery Process
DeliveryDefense generates a score that retailers can leverage to recommend the most suitable delivery option, guaranteeing that packages reach their intended destinations securely and promptly.
“By proactively identifying and addressing potential shipping issues, DeliveryDefense data increases confidence in a successful delivery,” explained Mark Robinson, president of UPS Capital.
Retailers can now offer alternative delivery options such as convenient UPS Store locations or other Access Points to optimize delivery outcomes and ensure customer satisfaction.
Addressing an Increasing Concern
Package theft has become a widespread concern for consumers. According to a study conducted by Security.org in 2022, an alarming 49 million Americans reported having at least one package stolen in the past 12 months.
The median value of stolen merchandise was found to be approximately $50. Based on incident rates and average loss, this equated to a staggering $2.4 billion worth of stolen goods last year.
UPS is committed to combating this issue head-on by implementing advanced AI technology through DeliveryDefense. By doing so, they aim to provide a safer and more reliable delivery experience for their customers.
DeliveryDefense: Ensuring Successful Deliveries with Data-driven Confidence
DeliveryDefense, a novel solution developed by UPS, leverages the vast wealth of data from UPS’ historical delivery records to provide merchants with a powerful tool – the “Delivery Confidence Score.” This score, ranging from 1 to 1,000, accurately determines the probability of a successful delivery.
When an address receives a low score, merchants can now take proactive measures to ensure customer satisfaction. They can suggest customers pick up their purchased products in-store or conveniently opt for delivery to a UPS Access Point. These access points, situated within retail stores or UPS locations, offer enhanced convenience.
This innovative tool has been designed to empower businesses of all sizes. Integration into a merchant’s order fulfillment system is seamless with the utilization of an Application Programming Interface (API). Alternatively, smaller customers can easily access the tool through a user-friendly web version.
Customers now have the advantage of SMS or email alerts regarding their package deliveries courtesy of the UPS My Choice program. This dynamic tool enables customers to provide clear instructions on preferred delivery locations – be it their residence, office, a neighbor’s or relative’s place, or a UPS Access Point.
Boasting an impressive user base of over 100 million, the UPS My Choice program has become a reliable and widely embraced choice for consumers.
