AI adoption is long overdue for logistics forwarders.

In this age of digitalization, consumers increasingly prioritize online shopping while supply chains utilize AI to become more efficient, streamlined, and cost-effective. Global e-commerce sales are expected to surpass $6.5 trillion in 2025, with an expected 7.7% YoY increase compared to 2024.

Consequently, the logistics industry is also positioned for substantial growth. Logistics services form the backbone of the e-commerce industry, ensuring each online purchase moves seamlessly from manufacturer to consumer.

However, many logistics companies operate as if they are still in the 1970s. Slow, manual data entry and tedious document verification not only drain time from employees but also stifle efficiency in an industry that demands speed and precision.

AI automates these mindless logistics processes that employees waste time
on, allowing them to focus attention on more proactive, effective tasks.

The 1970s Logistics Workflow

The logistics export workflow involves numerous parties: the exporter/seller, the forwarder, the carrier, and the consignee/buyer. Each step currently involves hand-operated document recognition and verification:

1. Shipping Invoices Sent to Logistics Provider:

• Each exporter provides a shipping invoice to a logistics provider.
• Forwarders enter the data from these invoices into their Transportation Management System (TMS) or Enterprise Resource Planning (ERP) software.

The main challenge in this logistics process is that each exporter sends shipping invoices in a unique format. As a result, forwarders must interpret and enter data from widely varying documents one-by-one, increasing the risk of human error.

1. Bill of Lading (BOL) Issuance and Verification:

• The carrier issues a Bill of Lading for each sale between exporter and consignee, which is used by consignees to pick up their goods at the destination port.
• If consignees cannot pick up their goods, extra demurrage/storage fees will be charged.

The Bill of Lading is formatted differently by each carrier. Not only that, but carriers often modify their BOL format based on location and update it periodically, typically every year. Ultimately, forwarders must verify that each unique Bill of Lading contains consistent information with an exporter’s shipping order(s).

Both processes are still manually operated by most forwarders to this day.

Automate the Dirty Work to Accelerate the Business

The current method of managing logistics documents consumes significant time and effort from employees. AI document processing eliminates these inefficiencies and empowers logistics processes to become faster, more accurate, and seamlessly integrated:

Efficient Container Space Reservation

• Automated extraction of shipment details (weight, volume, destination) reduces delays and prevents inventory overbooking or underbooking.

Streamlined Customs Clearance

• Simplifies compliance with automatically recorded Harmonized System (HS) codes, duties, taxes, and other required fields.

Improved Coordination with Freight Forwarders and Carriers

• Automation synchronizes data across the TMS system using APIs, making sure shipment order and buyer/seller details match across documents.

Reduced Errors and Compliance Risks

• Eliminates human error from manual data entry, reducing discrepancies and completing recognitions at 95%+ accuracy.

Faster Order Fulfillment and Last-Mile Delivery

• Streamlined invoice processing and shipping order creation accelerates the export cycle, speeding up the handoff from warehouse to transport and shortening lead times.

Cost Savings and Increased Productivity

• Reduces administrative costs by automating hand-operated data entry tasks. Improved time management for logistics teams, allowing them to focus on higher-value tasks like customer service or process improvement.

Questions to Consider

A logistics team must have a thorough understanding of the workflow to fully leverage AI software.

• Where in your logistics workflow are processes most repetitive and inefficient?

AI software has multiple deployment options to fulfill a company’s data privacy needs: public cloud, private cloud, or on-premise.

• What AI software deployment option would suit your company the best?

With so many AI document automation platforms available, it's crucial to choose one that truly optimizes the logistics workflow.

• Does their Document AI platform have experience serving logistics clients?

• Do they grasp logistics pain points and offer AI solutions tailored to your needs?

“It’s no longer the big beating the small, but the fast beating the slow.” -Eric Pearson, IHG

AI does not replace employees. By automating inefficient, repetitive tasks, forwarders not only save time and effort but can also focus on scaling business operations, cultivating client relationships, and expanding into new channels of the supply chain.

For more information, visit our website: sightify.ai.