Generative AI in Retail

Cutting Costs and Time in Freight Shipping

Generative artificial intelligence is streamlining freight shipping for retailers in ways that were nearly impossible for decades, bringing operational efficiencies even to small retailers that can’t afford fancy freight tech and to the legion of small businesses that ship consumer products to retailers.


A new shipment in a supply chain has multiple steps: getting a price quote, requesting the shipment, getting appointments for pickup and delivery, and tracking the shipment. Gen AI is making a difference at each stage, particularly for speed to market. For example, when a retailer emails half a dozen logistics providers for a price quote on a shipment, they used to have to wait for people to discover that email in their inbox, read it, get a price and reply. Thanks to C.H. Robinson tech that incorporates gen AI, they get a quote in an average of 32 seconds.


The faster you get a price quote and secure a truck to pick up your freight, the faster you get your product on a shelf without needing to pay a premium. Speed matters, because most trucking companies are regional and only so many trucks are working in a given shipping lane on a given day. MIT research shows that delays in getting a truck can cost you 23% to 35% extra on your shipment.


My advice to retailers is to sit down with your logistics providers to find out what gen AI advancements they’re making on your behalf and what’s on their roadmap.


Noah Hoffman

VP for Retail Logistics at C.H. Robinson