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UPS, the renowned shipping giant, is combatting the growing issue of package theft by using artificial intelligence (AI). The company employs a sophisticated program called DeliveryDefense, developed by UPS Capital, which leverages AI and machine learning to assess delivery risks. Drawing on two years’ worth of UPS delivery data, historical loss patterns, and address characteristics, the system generates a score to advise retailers on the best delivery option, ensuring packages reach their intended destinations. This proactive identification and resolution of shipping issues boosts confidence in successful deliveries, according to Mark Robinson, president of UPS Capital. Retailers can now suggest alternative delivery methods, such as utilizing UPS Store locations or convenient Access Points, to optimize delivery outcomes.
UPS relies on AI to put an end to the increasing number of “porch pirates” stealing packages once they have been delivered (as seen in the image below). A recent study by Security.org revealed that approximately 49 million Americans fell victim to package theft in the past year alone (as of 2022). This alarming statistic translates to $2.4 billion in stolen goods, with the median value per stolen item being $50. By using its vast historical delivery data, UPS’ DeliveryDefense produces a “Delivery Confidence Score” ranging from 1 to 1,000, indicating the likelihood of a successful delivery. The system utilizes AI and machine learning to assess the probability of successful deliveries, offering a valuable tool in the fight against package theft.
To address cases where an address receives a low score, merchants can now recommend that consumers either collect their products in-store or have them delivered to a UPS Access Point, conveniently located in retail stores or UPS Stores. This tool is available to businesses of all sizes and can be integrated into a merchant’s order fulfillment system using an API. Smaller customers have the option to utilize a web version of the tool. Furthermore, consumers can opt to receive text or email alerts regarding their package deliveries through the UPS My Choice program. This platform enables consumers to provide instructions on where they want their packages to be delivered, whether it’s their homes, offices, the homes of neighbors or relatives, or UPS Access Points. With over 100 million users, the UPS My Choice program continues to enhance the customer experience.
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