How can Chat GPT revolutionize logistics?

12 January 2024

Discover how GPT chat can be applied to logistics and what advantages it offers for management and operations as a whole.

One of the most discussed topics at the moment is GPT chat, and this research to know and understand the tool is no coincidence. The technology developed by Open AI promises to revolutionize the world of work, business management, and the way people access and interpret information. In this context, many have questioned its impact on logistics.

We know that logistics is, today, one of the fundamental sectors for the proper functioning of a company. For this reason, it is natural to observe a growing demand for new trends and technological solutions that promise to accelerate productivity and offer a competitive advantage over the competition.

It is precisely in this scenario that the research of different artificial intelligences (AI) arises, including GPT chat, created in November 2022. With its language processing capability, easy and intuitive use, ability to analyze large volumes of data and provide insights, the tool has gained ground in Internet debates and also in various business styles.

Among so many perspectives, is it possible that GPT chat contributes to the revolution of logistics, allowing the automation of activities, information processing, and more assertive decision-making?

Next, we will delve into the universe of artificial intelligence and understand how GPT chat can promote good results in logistics, increasing productivity potential and making operations more efficient, as well as discovering the advantages this new technology can offer to the sector. Watch.

But after all, what is GPT chat?

It is very likely that you have already encountered the term “GPT chat” on television, in newspapers, and especially on the Internet. Today it is impossible for this topic to go unnoticed. But do you really know what GPT chat is and what it is for?

Developed by the artificial intelligence research laboratory OpenAI, the “Generative Pre-Trained Transformer”, popularly known as GPT chat, is an algorithm that uses neural networks and machine learning, in other words, automatic learning, to improve communication and the virtualization of dialogues between humans and artificial intelligence.

This functionality is well known and already used in everyday life on smartphones, such as “Siri” (for Apple users), “Google Assistant” (for Android users), and even “Alexa” (by Amazon). The main objective of these algorithms is to provide a series of precise answers, in a clear and objective manner, aiming to improve the user experience and interaction with the device in question.

In the case of GPT chat, its architecture is advanced and based exclusively on the Transformer neural network, designed to process only texts. Its programming is robust and composed of levels that allow the platform to recognize keywords, context, and different meanings of terms, making GPT chat a modern text generation model.

With all these features, it can be said that GPT chat is highly capable of deciphering a text, providing high-speed responses with precision and clarity, as well as consolidating itself as an effective tool for improving the quality of virtual communication.

How does GPT chat work?

Like almost all artificial intelligence, GPT chat searches for information already available on the internet, meaning when you ask a question to the tool, the AI accesses the internet database and transforms that information into creative responses for users.

Its operation is very similar to that of the most well-known search engines like Google, Yahoo, or Bing. The big difference is that, instead of presenting the results in rankings, GPT chat is able to contextualize the information according to what is requested, in texts, poems, programming codes, and even song lyrics.

Another important difference in its operation is the ability to integrate with applications through an API, allowing even better experiences for users. What does it mean? In practice, this means that it is possible to ask questions through services like WhatsApp or customer service chatbots, simplifying the entire process.

How to use GPT chat in logistics?

So far, you have better understood what GPT chat is, how it works, and what its differences are compared to already known and used technologies. Now it is time to understand how this tool can become a great ally of the supply chain, allowing to increase efficiency, performance, and productivity of the sector.

Below, see some applications of GPT chat in the logistics field and the advantages offered:

1- Maximizing supply chain efficiency

Thanks to its advanced language features, GPT chat directly contributes to the identification of unstructured data, meaning it helps to group and analyze customer feedback, website reviews, as well as comments and posts on social networks. In this way, it is possible to identify the main topics discussed on a specific brand or product, identify behavior patterns, trends, evaluate satisfaction levels, and obtain new business opportunities. With GPT chat, logistics benefit because it will have concrete data to promote internal improvements that positively impact customer service.

Let’s take an example: imagine that your company identifies a series of messages and feedback from customers expressing dissatisfaction with delivery times or product quality. Based on this information, it is possible to investigate the causes of delays and make more assertive decisions, such as optimizing the workflow, controlling inventory management, and even considering new suppliers of goods or new carriers. The main idea is to use GPT chat data to make improvements to the entire logistical structure of the company.

2- Identifying market fluctuations

Another advantage of GPT chat applied to logistics is the possibility of obtaining information on market demands and preferences. With the tool integrated into the company’s communication system, it is possible to receive real-time data and intelligent recommendations that increase the efficiency of the operation.

An excellent example of this application is when a company experiences fluctuations in demand. Imagine that in a certain period, product x had a strong demand in the market, and to meet consumer expectations, the company will have to make quick and assertive decisions about its actions. Doing it manually can not only compromise the brand image but also reduce competitiveness compared to the competition.

With GPT chat applied to logistics, it is possible to analyze historical sales data and obtain greater predictability on how much stock will be necessary to meet this demand, without taking risks and saving resources. Additionally, the tool helps the company optimize transport routes to ensure timely deliveries.

3- Performing predictive analysis

Another advantage of GPT chat for logistics is the ability to identify possible bottlenecks in the logistics operation through a thorough analysis of data and the different sources with which it can be integrated.

Let’s see a practical application: if integrated with equipment sensors, GPT chat can identify the need for maintenance, avoiding significant damage to the company, as well as downtime. This saves resources and increases operational efficiency.

4- Increasing efficiency and competitiveness

One of the greatest differences when talking about artificial intelligence is the rapid learning ability of algorithms, and GPT chat is no different. The tool goes beyond providing simple insights and recommendations; it is capable of understanding a company’s behavior in the market based on interactions and data history.

In practice, the more a company uses GPT chat, the more the tool becomes personalized, being able to offer effective information for business performance. Therefore, it is possible to identify potential growing markets, new consumer trends, demand predictability, among other essential behaviors that prepare supply chains in accordance with market expectations.

5- Reducing costs

There are many contributions provided by GPT chat to the reduction of logistics costs, including demand predictability. Once the tool identifies market behavior, inventory management can be carried out more clearly and objectively, avoiding, for example, that goods with low demand are stopped, suffer damage and losses, reducing excessive expenses and saving, especially, in storage.

Another significant saving that can be influenced by the use of GPT chat in logistics is related to transport expenses. The tool is able to analyze traffic data and recommend more efficient routes for vehicles. This directly contributes to reducing travel times and fuel costs, as well as ensuring speed in delivery and customer satisfaction.

6- Automating tasks and reducing errors

With GPT chat, it is possible to automate repetitive and tedious tasks, such as checking information on shipping documents, customer invoices, data spreadsheets, among others. Additionally, GPT chat can be used to generate shipping labels and invoices. Therefore, artificial intelligence is capable of preventing and automatically correcting any errors in documents, avoiding the need for manual intervention.

7- Customer service

The entire logistics planning of a company revolves around satisfactory customer service, and one of the most important aspects in the current context concerns communication with buyers. Once again, GPT chat can prove to be quite effective.

The technology can be integrated into customer service systems to provide automated responses to common questions, such as tracking information or estimated delivery dates.

It is important to remember that, if poorly executed, customer service can severely damage the company x client relationship. Often what should be resolved clearly and objectively can translate into a bad experience and direct damage to the brand.

In this sense, GPT chat comes to provide additional support to logistics and business as a whole, proposing itself as one of the great answers to masterfully win the communication challenge, developing resources such as virtual assistants and chatbots that interact directly with customers, managing the high volume of demand, monitoring orders, and clarifying the main doubts efficiently. It is worth adding that the use of GPT chat can reduce the workload of agents and improve customer response times.

8- Employee training

In addition to contributing to external service, GPT chat can help in professional development and interaction among employees, as it is capable of responding to training programs that help simulate real-world scenarios and provide personalized feedback to the team.

This integration allows the development of new skills and the efficient promotion of culture and knowledge for employees.

5 practical steps to implement GPT chat in your company’s logistics

There are many advantages in applying GPT chat to logistics. Its ability to analyze and provide large amounts of data helps managers gain valuable insights into customer behavior and product trends, being able to make assertive decisions to improve workflow efficiency.

Understanding the effects of this new technology is essential to stay updated in the market. However, knowing how this can be implemented is a great differentiating element for companies that want to make a difference and innovate in the coming years. With this in mind, we have separated 5 practical steps that should be considered when implementing GPT chat in your company’s logistics.

Step 1: identify the main areas of logistics that can benefit from the application of GPT chat. To do this, start by asking yourself: “where are the biggest bottlenecks?”, “are there internal or external complaints about current processes?”. Some areas that may appear during the analysis are: inventory management, route planning, demand forecasting, customer service, among others.

Step 2: after identifying the area and sectors that require automation, collect and organize all relevant data for the application of GPT chat, such as order history, seasonal sales, inventory data, productivity indices, and information on suppliers and customers.

Step 3: Choose the partner company for the development and/or acquisition of a GPT chat model. It is crucial that the artificial intelligence meets the needs and specificities of the company identified in step 1.

Step 4: After choosing the tool based on the company’s needs, it is time to integrate GPT chat with existing management systems, such as the Warehouse Management System (WMS), the Order Management System (OMS), the Yard Management System (YMS), or the Transportation Management System (TMS). It is also interesting to integrate with CRM to provide automated responses to customers.

Step 5: finally, test the GPT chat model in a controlled environment, adjusting settings and training the model with additional data as needed.

It is important to remember that any change in workflow is a process that requires good planning, resources, and investments, therefore carefully evaluate the benefits, the current conditions of the company, and ensure that the strategy is consistent with business objectives.

In this article, we understand more about GPT chat and its potential to revolutionize logistics. Its ability to improve efficiency, reduce costs, and enhance the customer experience drives companies to seek and consider adopting this technology in the coming years.

As communication and information technologies evolve and improve, solutions like GPT chat could have an even greater impact on logistics. Additionally, companies that stay updated with technological trends and embrace these new technologies will be more likely to stand out in a constantly changing sector. Therefore, make sure to follow the news and look for concrete ways to apply them in your business!