chatbots transform logistics

The criteria for artificial intelligence (AI) as proposed by Alan Turing in the 1950s was its ability to behave like a human being. The test, known as the Turing Test, still holds today, as it is the criteria by which the capability of AI to mimic the brain is demonstrated. 

The Turing Test is still in use today, having impacted digital marketing in a big way.  Chatbot-driven campaigns are increasingly becoming sophisticated, and this trend is likely to gather pace in the coming times. 

AI-driven chatbots are helping organizations develop a good relationship with their clients through positive engagement. And as far as using chatbots in logistics and supply chain management is concerned, its primary purpose is to increase speed and efficiency. 

In this article, we look at how a chatbot’s ability to impersonate a human in logistics and supply chain management can lead to higher transparency, accountability, and performance. We shall also see how a well-established chatbot development company can help an organization gain a competitive advantage in the marketplace. 

Chatbots in logistics and supply chain management: what statistics has to say

Logistics and supply chain management is a field that has been quick to adopt chatbots, as they became well-aware rather early about bots can prove to be a major asset.  The latest Supply Chain Report clearly attests to this fact, with 79% of companies making use of chatbots in various capacities in their business operation or as part of a digital interface. The need and demand for incorporating cutting-edge technology in supply and logistics management mean that chatbots are rapidly evolving with more than 40,000 different types of chatbots already available. 

The Chatbots Market Report has predicted that the Chatbot market will grow at a CAGR of over 25% in the next three years. Another survey reveals that bots are expected to save organizations more than $10 billion in costs per year by 2024. 

The Rise of the Chatbots

Organizations looking forward to improving their conversion rate optimization have found a perfect solution in chatbots. Sophisticated chatbots allow companies to respond immediately to customer inquiries, which in turn makes logistics a lot smoother. Corporations with complex logistics and supply chains were the early adopters of AI, which means it should not come as a surprise that these organizations were quick to adopt bots as well to obtain a competitive edge. 

Chatbots in Supply Chain Management

Any good supply chain management strategy pays a lot of attention to integration, which is of two types—vertical integration and horizontal integration.  

A vertically integrated company pursues strategies to take control of its supply chain by means of different approaches ranging from mergers, acquisitions, or obtaining control of other companies in its supply chain. In fact, it is not uncommon to find organizations with large and complex supply chains to adopt this strategy. 

Chatbots play a variety of roles in organizations seeking vertical integration. For example, chatbots can establish a crucial link between component organizations. 

Let us understand this with a real-world example. The AI can gauge and automatically place an order for raw materials. It is assembled and processed by a contract manufacturer. It is then transported to a warehouse or storage unit. The product is then sold online. You must be wondering where chatbots come into all this. The answer is pretty straightforward. There’s something that needs to link all the processes together, serving as a central point of reference. This is where chatbots come into play. 

Chatbots Ensure End-To-End Visibility

In the supply chain, it is important to keep a close watch on materials being transported for optimum efficiency. Traditionally, it works with a booking number, which is a pretty time-consuming and complex number. This leads to a loss of productivity because of the absence of information in real time.

All these issues can be satisfactorily resolved by chatbots, which have access to real-time data stored in the Enterprise Resource Planning (ERP) of a company.  As such they are fully aware of the status of shipments and provide quick information whenever such information is desired. 

Because of chatbots, people at the very end of the supply chain pipeline i.e., the customers can easily track the status of an order, right from its placement to its final delivery at their doorstep.  


The flow of raw materials can easily be obstructed leading to supply chain disruptions owing to a variety of factors. A strong, resilient supply chain can be a source of competitive advantage in the marketplace. Chatbots developed by a reputable logistics software development company can help build a resilient supply chain. Chatbots can play a proactive role by initiating engagements and helping to nip the problem in the bud before it becomes a major issue. For example, if there’s a delay in transport, your AI will spot it or even predict it in advance. A chatbot developed by a quality chatbot development company can then provide an update to the concerned party about the order. 

By Anurag Rathod

Anurag Rathod is an Editor of, who is passionate for app-based startup solutions and on-demand business ideas. He believes in spreading tech trends. He is an avid reader and loves thinking out of the box to promote new technologies.