How NZ Post is Improving CX and Warehouse Safety Using AI
As the e-commerce boom continues to reshape logistics, NZ Post has witnessed a significant increase in parcel volumes – delivering almost 17 million parcels across New Zealand during the last holiday season alone.
This surge has presented both opportunities and challenges for the 180-year-old institution, particularly when it comes to managing customer enquiries and maintaining efficient supply chain operations.
Seeking to enhance customer experience, warehouse safety and delivery privacy, NZ Post adopted a number of AI solutions, but initially found open-source generative and predictive AI was slowing their innovation efforts.
The answer was to turn to DataRobot, implementing a comprehensive AI platform offering end-to-end lifecycle capabilities, advanced image classification and governance for both of those aforementioned AI models.
A comprehensive solution for modern challenges
In years gone by, NZ Post had relied on open-source coding languages and basic AI tools for predictive analytics, but found them too limiting.
“We wanted something more robust and more professional,” explains Tim Reed, Head of Data Science and Analytics at NZ Post.
DataRobot offered exactly that, while its seamless integration with NZ Post's existing technology ecosystem, including Snowflake within AWS, Microsoft Power BI and Azure OpenAI, has significantly reduced siloed workflows and associated inefficiencies.
"DataRobot ticked all the boxes for data science capabilities," Tim notes. "We now have critical champion/challenger comparisons, health metrics and hands-off model monitoring.”
Predictive AI transforms customer service
One of the most impactful applications of the new AI system has been in customer service.
By leveraging predictive analytics, NZ Post can now anticipate which customers are likely to call and for what reasons, allowing for proactive communication.
"Those top predictive explanations act as the prompts for a Gen AI LLM to create emails with a theme and context that relates to a customer," says Tim. “It’s not specific to one person but segmented based on predictions.”
NZ Post is now able to automate the entire process of segmenting and emailing customers with guidance on a particular question, resulting in a remarkable 33% reduction in call volume during initial trials.
Using DataRobot, NZ Post consolidates predictive and Gen AI models into a single platform, streamlining their AI environment, teams and workflows to achieve comprehensive visibility and oversight at scale.
“With DataRobot’s Gen AI monitoring, we can pick and choose which LLM to use and decide which gives us the best answer for our problem,” Tim continues. “It’s complete with the metrics that relate to that level of accuracy for toxicity, bias, etc.”
The implementation of AI-driven customer segmentation has further enhanced the user experience on NZ Post's website.
NZ Post has been able to reduce visits to its call centre contact page by 18% and deliver an 8% reduction in those calling after visiting that page.
Image classification enhances privacy and safety
Perhaps the most groundbreaking aspect of NZ Post's AI adoption has been in the realm of image classification.
This technology is being used to blur identifying information in delivery confirmation photos, ensuring compliance with privacy laws while maintaining proof of delivery.
In warehouse operations, the same technology analyses CCTV footage to identify potential safety incidents.
"Image classification has been one of the main differentiators for DataRobot," Reed enthuses. "We've presented our warehouse safety use case in a few places and always get 'oohs' and 'aahs' because it's pretty cool.”
The ability to integrate various data formats into its AI programmes enables NZ Post to maximise the value of its data, enhancing supply chain operations, customer experience and digital transformation efforts.
Industry-leading governance
As NZ Post continues to expand its AI programme, the robust governance capabilities provided by DataRobot ensure all applications remain secure, compliant and accurate.
This comprehensive oversight has instilled confidence in the postal service's digital transformation efforts.
Reed concludes with an optimistic outlook on the future of AI in NZ Post's operations: "DataRobot gives us reassurance that we are accessing Gen AI through a well-governed and secure environment."
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