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The AI Conversation at Parcel Forum With Tom Butt From EasyPost
Episode 7218th September 2025 • Unboxing Logistics • EasyPost
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Welcome to a special edition of Unboxing Logistics.

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I'm your host, Lori Boyer from EasyPost, and today we are gonna be

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talking about a big event that just happened last week, Parcel Forum.

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Really exciting.

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We were the AI in Logistics sponsor of the Parcel Forum Show.

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I had the absolute pleasure and privilege of speaking with the one and only the

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Unboxing Logistics godfather Tom Butt, and we were able to talk about AI.

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So we're really excited today because we're just gonna give you a few little

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things, what we heard at Parcel Forum, what all the scuttlebutt is, and

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kind of just some of the highlights of the things we talked about at AI.

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Tom, before we jump in, reintroduce yourself.

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I know that you are a, a classic favorite here at the Unboxing Logistics

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family, but for those of who happen to have missed one of your appearances,

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tell us a little bit about yourself.

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Yeah, sure.

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So I appreciate the, the privilege of coming back.

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I always love talking on the podcast here.

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So a a little bit about myself.

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Tom Bott, a

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senior manager here at EasyPost of AI and analytics.

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I've been in the operations and technology space going on, gosh, 15

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plus years now and have worked with major retail organizations to come up

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with strategies to leverage technology to better execute operations specifically

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for supply chain, direct to consumer.

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And with EasyPost here in, in the parcel space.

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So have the privilege of diving in headfirst to the AI topic, which

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seems to be all the buzz these days.

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Yeah, absolutely.

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And I mean, let's just start there.

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What was the buzz you heard on the floor of Parcel Forum?

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What was everybody talking about?

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Doesn't have to be AI.

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Just, you know, what, what, what were you hearing from everybody in the industry?

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Yeah.

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Some, some key themes in just talking, you know random one-offs at the

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conference were around uncertainty in the, the supply chain space, the

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ever-growing complexity the ever-growing expectations of consumers in terms

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of how they get their packages the different methods that they want them.

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Everyone seems to want everything right now.

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They want fast.

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They want it cheap.

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And so the parcel space in particular a lot of the shippers are getting

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squeezed to, to do more with less.

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And it really bodes well for AI.

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And everyone in the AI space was talking and kind of comparing notes and

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saying this AI thing, is it a buzzword?

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How are you guys using it?

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When is the starting gun gonna go off?

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And so we, we talked about that during our session.

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Absolutely I that, those are similar things that I heard

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and conversations I had.

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Everyone's kind of in the same place where there's a lot going on right now

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and as we're just about kicking off peak season here for 2025, uncertainty,

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I love that you said that because that's kind of in the name of the game

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is everyone's not exactly sure what's gonna happen and absolutely right.

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I, I felt like as well, there are a lot of people who are kind of like, yeah,

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I know AI, like I should be using it and it's awesome, but I don't really

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know how, and I don't really, you know, is there's a lot of confusion around

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where and how and, and to implement AI.

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Did, did you hear that as well?

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For for sure.

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You know, there are a lot of tools out there.

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It seems like every single platform you go into is like, oh, try this new AI feature.

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Whether or not that's something like a Google Gemini or if

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that's, you know, just ChatGPT or

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could be anything from, you know, summarizing calls and taking notes.

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So I, I think a lot of it is there's just this amorphous like,

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hey, AI can help us, but how?

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And, and so what we were really talking about during the, the session that we had

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was, you know, start small, start very targeted and say, how, how can I use AI

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to help me with a very specific problem?

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You know, outline your objectives, outline expectations of what you're looking to do.

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And by doing that you can be a little bit more targeted, a little bit

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more strategic about how you use it.

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Yeah, I loved that.

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I loved hearing people talk about AI is really effective

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when you start with your problem.

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So just what you said, like don't just try to squeeze AI into a pigeonhole just

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because you wanna use AI, but if you have a problem, which, I don't know if we ever

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don't have a problem in our industry.

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Right.

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That's one of the things I, I love about the operation space

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is you can always get faster.

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You can always get cheaper.

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You can always provide a better customer experience and that that

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frictionless buying experience, if you're going direct to consumer or

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if you're doing B2B, you know, you're your customers, you're looking to just

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make things just sharper crisper, more clear, those sorts of things.

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Yeah.

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I also, somebody mentioned being able to see your ROI.

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I think that that's another critical one when you are looking for AI tools,

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you should be able to measure if you are saving time or saving money things

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like that so that, you know, it's not just a buzzword, not just hype.

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Yeah.

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And you know, with that one of the things we talked about was, you

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know, creating a scorecard, looking at it, breaking down by di different

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dimensions speed, cost, quality, what you're doing to support sales.

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And what you're doing to help support the customer experience you know, come at

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it with a kind of a, a framework that you can assess and say, hey, for each of

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those dimensions, how far am I off from where I would expect to be or want to be?

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And then that's gonna help you prioritize what sorts of things to go after first.

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So again, just set up a, a framework, come up with an

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intention and, and go from there.

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Yeah, absolutely.

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One of the areas that I felt like the, you know, our, our session

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attendees were really interested in was when you talked about kind of

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the specific areas or pain points.

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So Tom here at EasyPost deals with helping our customers with AI and so he

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actually kind of sees on the front line.

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A lot of what, where they are using AI, how does it work, how does it not work?

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Where do they see hiccups?

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So the audience was really interested in hearing what are the kind of pain points

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that you're seeing where AI is being effective, where you are being able to use

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that scorecard and kind of track things.

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Can you share that with our, our Unboxing Logistics family as well?

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Yeah, for sure.

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So again, with the uncertainty in supply chain all the factors to consider you

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know, we are seeing just this continued push for carrier diversification.

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You know, carriers are offering different service levels.

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There's a lot of different moving parts and pieces.

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And so with that, we're seeing customers use AI.

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We have a specific tool that helps people sort through all of the, I'll

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call it granular or very particular instances, so of, of how to get

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things to customers faster, how to get things to customers more cheaply.

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And in particular kind of getting that intersection of both faster and cheaper.

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So we're using AI to just crunch through tons of different data points,

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billions and billions of shipments.

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And what that's allowing customers to do is, again, get,

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get the best of both worlds.

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In the past, it was either cost or time in transit that you'd

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be looking to optimize for.

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But we're seeing our customers use AI to, to really get the best of both worlds.

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All of the different factors to consider, you know, different zip codes

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to deliver to surcharges dynamic landscape of, of carrier rates.

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AI is really helping in that space.

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There's also maybe a little bit more I call it sentiment analysis.

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So people looking at summarizing customer experience, going through loading their,

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their customer feedback to, to suss out key themes of, of what might be going on.

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That's gonna allow you to have a, a better pulse on where

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your opportunities might lie.

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So there's that hard, like, hey, we're gonna go after these specific metrics

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and targets, but there's also this distillation of sentiment that you can

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get to that is gonna also give you kind of a roadmap for how you would,

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how you'd navigate the parcel space, especially as we get into the peak season.

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So, okay.

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So what I was hearing was really good uses of AI when it comes to kind of carrier

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selection, route selection, service level selection to make sure that you

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can optimize for both cost and speed.

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And so when you said consumer sentiment, so kind of what if, how people are feeling

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about, how your customers are feeling about the experience that they're getting.

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Correct?

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Yeah, exactly.

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And you know, if you're loading customer comments or if you're using AI to do you

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know customer experience or customer contact, customer support calls,

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you can use that, that AI to kind of layer in and analyze that, to give you

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summaries and things of, of that nature.

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I know in our sales opportunities, we're using a product called Gong

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that allows us to make sure that we're capturing exactly what the customer is

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looking to get at, allows us to reflect on how do we best serve that customer.

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So that's something that can, can be extended across AI tools.

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Absolutely.

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That was something as well, people, we had questions about

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which tools do we recommend?

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Feel free to reach out.

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I have some lists of tools that a lot of companies are using.

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Of course, here at EasyPost, we love our Luma tool

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for checking your that kind of time in transit, spend, figuring out carriers.

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Carriers are our, what we live and breathe every day.

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So that's where our expertise is.

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But there are a lot of tools that are really great out

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there across the spectrum.

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Tom, do you have any specific stories or examples you can share maybe of

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customers or people you've talked to on, you know, their experience

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going through implementing AI, what that looked like and, and how they

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were able to, you know, create their scorecard or, or do anything like that?

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You know, we're, we're getting a lot of customers that are looking

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at how can we use AI to make better predictions about what carriers

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maybe that I'm not using today, but carriers that I, I should be using.

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So we have customers where they're maybe just using or, a couple of carriers,

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so UPS, FedEx but they're really, you know, Amazon is a new player in

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this space in terms of expansion from just their, their in-house networks.

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So we've used AI to ask you know, basically our, our customer data to say,

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hey, are there if we brought Amazon in or if we brought another carrier and maybe

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a regional carrier, like Better Trucks or, or OnTrac what would it look like

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and what types of shipments would we use or what types of shipments would best

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be leveraged on those different carriers maybe that we don't have yet today?

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So it's a little bit of a, a scenario builder that allows people to kick

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the tires on how they can expand or how they can augment their carrier

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network the impact that that might have.

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And it's, it's really looking at every single individual package that you had

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shipped in, you know, like a la a last 30 day period and give you the insight

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to say, hey, this is the value that it could provide if you bring it in.

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So we're augmenting you know, maybe a, an analysis that you did in the past

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we're using lots of different data points.

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We're using the AI to make recommendations on how you could augment your network.

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Do you see a specific, like, kind of general percentage of, you know, how

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much they can reduce in parcel spend?

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I know that obviously numbers are gonna be totally different from

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customer to customer, but are we talking 10%, are we talking 1%?

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Are we talking 6942%?

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Sure.

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I give you a, a generic number wide range.

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We're seeing anything from a, a couple percentage points.

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So you know, but for somebody that's shipping a lot of volume, that few

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percentage might be tens of thousands, hundreds of thousands of dollars a month.

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But we do see some customers, depending on, you know, maybe they're only using

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a single carrier right now and they'd want to expand to a multi-carrier

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service, they could save up to 25%.

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Yeah.

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So it, it is quite a range.

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It kind of depends on where you're starting from.

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If you're already highly optimized or using AI to some extent

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already there might not be as, as much juice for the squeeze.

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If you are coming from a place where you haven't really touched your network in

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a while, and there's lots of opportunity to expand, to make adjustments you know,

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we are seeing it in that 20, 25% range.

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Yeah, I, I had a great conversation at Parcel Forum with a woman where she has a,

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a flower selling business and she's she ships about 10 to 15,000 packages a month.

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But she's always used a single carrier.

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Right.

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And for me it's just like, like so much opportunity.

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If you are listening and you happen to be somebody who's really stuck with one

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or two carriers, that is a big signal that you probably have a good opportunity

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to really optimize your carrier mix.

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Now Tom, I get a lot of questions, so, and, and this

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was a question she had for me.

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I'm scared that if I move away from a single carrier that I'm not

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gonna be able to get good rates 'cause I put all my volume together

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so that I can negotiate rates.

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How, how do you respond to, to that question?

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Sure.

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I think we can still look to, to use carriers in a lot of

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the instances to make sure that you're getting volume discounts.

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That said, there may be a, a subset of your shipments where we can start small.

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We can look at how much volume would be shifted for things like

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two day or next day shipments.

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So we, we can kinda adjust the amount of, of volume that, that you may be looking

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to shift or to expand to multi-carrier.

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It doesn't have to be, hey, all of a sudden you add another carrier,

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it's 50% has to go this way.

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The other 50% has to go the other way.

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So you, you maybe lose those volume discounts.

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So you can start small and you can start optimizing subsets of your packages.

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Maybe you're getting the most customer complaints on those expedited services.

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You could optimize with AI that just those expedited services.

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Save the bulk of your shipments to go through your, your main carrier.

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But I, I'll just reiterate, if you are in single carrier, even if you're getting

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those discounts you are at the whim of that carrier and any sort of surcharges

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or price changes that they have.

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You know, there are instances where, you know, if it's a unionized environment,

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maybe the union goes on strike and then you're scrambling to, to go other places.

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So is there is that risk mitigation factor.

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But you don't have to go, you know, dive head first.

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You can start to dip your toes in the water and, you know, maintain your, your

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volume discounts and, and go from there.

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I love that and I love the idea of starting with

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somewhere you have a problem.

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So with AI in general, this is what I'm hearing.

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And you know, as I've spoken to different experts, start with a problem.

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Again, always start with the problem.

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So if you have, exactly like Tom was saying, maybe a certain area

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where you're getting delivery windows are missed by 15% or more.

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In a certain region or a certain lane.

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First of all, you can use AI tools to kind of determine where you are having

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problem spots, but even if all you do is know that you have a problem spots,

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you're probably not gonna get much worse.

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So start by experimenting with some different tools or, or options,

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maybe different carriers here.

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And you know, when you have a lot of data around it, that makes it so it's

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a lot easier for you to see, you know.

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If you're able to improve even 10% or something like that.

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I love starting with that small data rich problem.

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That to me is the easiest way to kind of segue into making

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a little bit of a change.

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Another area though, Tom, I hear is like, maybe it's repetitive or slow.

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Maybe you've got a lot of manual stuff going on.

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Those are other opportunities for AI.

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Is that what you've heard or seen as well?

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Yeah, I think those, those decision points you know, where you're

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making, you're having to adjust one-offs here, one-offs there, and

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it's consuming a lot of your time.

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I like to frame things in the,

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you know, the Pareto's sense of, of it.

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So

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maybe you only have 5% of your packages that are late.

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But those may be taking up, you know, 90, 95% of your time to to break from the 80.

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20 rule, to go to the 95, 95, 5 rule, or the 90, 90, 10 rule.

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So a, a lot of times when you are having those, those instances you can pop

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AI and look at your shipments, see what some of the exceptions may be.

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See if there's, you know, opportunities for delays within your carrier network.

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Where are those occurring?

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Is it, you know, pre-transit exceptions?

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So you're printing a label, but it's not scanning into the carrier network.

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You can take a look at those types of shipments.

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You can have AI analyze and say, hey, are those happening

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for a certain carrier set?

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Or are those happening kind of across the board?

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You may have different different solutions that you need to, to go after.

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But AI is gonna help you identify where those exceptions are and

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potentially make some recommendations on how to address those things.

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I know that we talk specifically about, you know, our, our AI solution.

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But you can, you

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know, pop things into ChatGPT as well

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and, and ask more strategic questions there.

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So there, there are some things where you can start to at least, you know generate

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a framework of how you wanna approach a pro a problem and then use it as you

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kind of go through the discovery journey.

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I know that there's, you know, buzzwords past, I know data science

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was a big one a couple years ago.

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Obviously analytics, you've got cloud.

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Those are all things that we see as, as iterative.

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So you still need a lot of those things.

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You need, you know, cloud to be able to aggregate all your

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data so that AI can analyze it.

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But I, I think in general again, you can use AI kind of throughout

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that discovery process and you can come up with the scientific method

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to you know, solve your problem.

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You know, again, start with that problem statement, but then kinda step through

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that journey with AI as, as a partner.

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Absolutely.

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I wanted just to jump into mistakes that we commonly see and I'm gonna kick us off.

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And then Tom, you can share any other mistakes you see.

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But one of the big mistakes when it comes to AI is underestimating the importance of

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your data being good data and clean data.

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Do you have any recommendations?

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You're just a data guy in general.

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How do you make sure that the data you're using or you know, that you

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have a single source of truth even because a lot of times different

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teams are using different data.

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What is the importance of data?

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Why is that important, and how can you kind of try to make sure

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that you're getting clean data?

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Sure.

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And I'll, I'll use the play out, played out mantra garbage in, garbage out.

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I think, you know, most of our listeners have probably heard of that.

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We have seen AI be very effective at anomaly detection.

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So, for example there may be true outliers in your data, but if you're

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pumping a data set into AI and asking, hey, what are my, some of my

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statistical outliers you can also use AI to simulate supplemental data.

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So if you only have you know, a lo a light amount of data you can

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use AI to generate additional data sets that, that you can reference.

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But using it for anomaly detection is something to at least get you down the

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journey of seeing how clean is your data.

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If you can just highlight, you know, things that may be, you

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know, a couple standard deviations outside of an expected value.

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I know for us, we've got some cartonization software that's out there,

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but, you know, you can ask, hey, what are, does, does this data look clean?

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Like, is it something that needs, you know, is it something that we

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should adjust or we need to augment to be a little bit more robust?

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But you can use some AI tools out there to, to assess that and to just ask, hey,

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where, you know, are there opportunities for me to clean this data up?

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Yeah.

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So use AI to, to kind of make sure you've got the clean data as well.

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I love that.

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One of the great things about AI is the fact that it sort of takes these

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really technical, difficult things and makes it easy for just regular

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people like me to understand it.

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So there are tools.

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Again, if you need specific names and tools, I'm not gonna jump

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into them all here 'cause I'll forget some of my favorites.

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But there are tools that help you look at your data and, and give you

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kind of the probability that maybe you've got some red flags in there.

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What other mistakes do you see though, Tom, when people

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are trying to implement AI?

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To go back to not having an intention, not having a, a process.

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I, I think that.

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You see a sparkly and you're like, ooh, that sounds good.

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That's a big one.

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I, I think the other one is just not getting started, right?

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So to, to say, hey, I, I don't know this.

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We'll kind of wait for others to get this figured out.

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I can tell you right now, there's not gonna be a starting gun.

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And those that adopt this adopt AI and start to build it into some

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methodologies, build it into frameworks are gonna have a head start and a leg up.

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Those are the, the customers that are gonna say, hey, I, or

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excuse me, the, the users that are gonna say, hey, what happened?

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Why are we so far behind our competitors?

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Why are we losing market share?

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Why are we not as competitive from a a cost perspective?

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The other thing that we do see a lot of people say, well, I

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don't know exactly what the AI is doing, so I'm not gonna use it.

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Right?

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So, so for example you know, you see that the AI is getting you better results.

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It's very good at, you know, you have an objective statement.

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It will optimize to drive toward that objective.

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So that could be, you know, cheaper shipping, faster shipping

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in the, in the parcel space.

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But I think if you don't,

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if you don't have a process to start to incorporate AI and you don't have a trust

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that the results are gonna be out there, those results are gonna be formatted to

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just say, hey, this is what I'm achieving.

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A lot of times people wanna see the exact how and sometimes AI

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isn't as great at doing that.

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Especially when you get into the data teams.

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You get the ops teams correct.

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That are like, well, let me see this.

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'Cause we're used to, I say we, like ops teams.

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I, I'm your, I'm your buddy.

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I'm not really ops teams, but yeah, you, you need to know that people feel

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that need to like have control, I guess.

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There is a little bit of a just take, let, let the AI make some decisions.

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Again, sometimes it's not gonna be able to explain that the reason it chose this

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particular shipment method, you may have to go back and say, well, there was a

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holiday here, or we're not seeing this statistical performance in aggregate

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from one carrier in one particular lane.

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So we do see a lot of people wanting to be very prescriptive and to basically

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have the AI do what they were doing in the way that they expect to do it.

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And this is a non-linear jump, so it's not gonna be like, hey, it's gonna do

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things exactly the same as, as I did it.

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You know, maybe I had a really complex rule set that I, I built out.

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It may just make decisions on factors that there's so many things that it can crunch.

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It's not gonna give you the exact secret sauce.

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But it'll be a good tasting sauce.

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Even calculators are like that.

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You know, if you're adding 324 plus 192, it just gives you a number.

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It doesn't say, oh, I carried this one, and I did.

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You know?

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And so at some point we had to kind of trust the technology

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that it's working correctly.

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I, that's a really, that's a really hard one for some of us, so, love that idea.

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Anything else there on mistakes?

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Otherwise, I wanna hear kind of just your takeaways on what people should do.

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I, I love the idea as well, I don't wanna miss this that people sometimes

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just don't do anything, like analysis paralysis or whatever, trust that,

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look, when you start using AI, there's probably gonna be some hiccups.

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There's gonna be times that it didn't work the way you thought, or there's

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gonna be times that you didn't realize or you didn't understand how to use it.

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That should not keep people from starting and implementing.

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'Cause as you said, the, it's already started.

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The, you know, you said the gun's not gonna go, the gun's gone off.

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You know, people are running to, and, and the only way for us to learn and to figure

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out where it is gonna be implemented is to actually kind of dive in here.

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So I love that point.

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Tom, any other mistakes?

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If not, what are kind of takeaways of, you know.

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What, how can they do, what can they do to get started this quarter?

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Any, any like, go out and do this?

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Yeah.

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I, I think part of it, and we talked about this during our session, was leadership.

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A lot of people are using AI in their day-to-day.

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But a lot of times leadership just doesn't really know, again, to,

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to go back to the starting gun hasn't started or hasn't gone off.

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I think part of it is as a leader, you're expected to have

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a vision for some of this stuff.

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So, so some of it is just

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you know, making sure that there's an owner of this and calling out

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that there's a responsibility from a leadership team perspective to, to

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go after and develop an AI strategy.

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A strategy doesn't have to be perfect, but if you have some sort of framework,

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some sort of vision for how your team can use this, can use the AI tools.

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You're gonna just be able to iterate on that.

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You're gonna be able to, to build on it, learn from your mistakes, kind of go

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through that process of, of discovery.

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So I think again, just not having a leadership vision is, is a big mistake.

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Yeah.

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There, well, in our session we talked about, there was a, a

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study that was done recently.

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And it is leaders.

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So if you're leaders, you're getting called out a little bit here.

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It is leadership that tends to pull back, where team members tend to want

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to use AI a lot more, and leaders get a little bit more hesitant.

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So it's a good reminder actually, right before this podcast,

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I had a meeting with my team.

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I'm a leader of a team as well, and we were discussing AI tools and what

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we need to be using and how we can, and so make sure that you're, you're

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bringing that to your team as a leader.

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That's a, a great point, Tom.

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Everyone, it was great talking about AI.

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Some big takeaways for me.

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Just from today, but also from Parcel Forum, and from the session,

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is that we just gotta get started.

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AI is not perfect yet.

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Okay?

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We haven't found like the silver bullet AI that does everything,

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but if you are not doing something, you're getting left behind.

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There are a lot of great tools out there.

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But start with your problems.

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So if you're having a problem in the warehouse, look for a tool that's

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gonna do something in the warehouse if you're having carrier issues or

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if you're wanting to really save some money on your, your carrier spend

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as we come through peak, we've got a lot of big surcharges and stuff.

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You know, look at tools where you can simulate that and, and figure that out.

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But just start.

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And then figure out from there.

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That's my advice.

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That's really what I've been hearing is people are starting

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and seeing some really good wins.

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Any other takeaways from you, Tom?

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No, don't, don't let perfect get in the way of better.

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You know, it's.

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Love that automism, don't let perfect

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get in the way of better.

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Yeah.

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And, and again, just build on successes.

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If you can get some quick wins, prove ROI, basically market that with your

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teams and say, you know, congratulate people if they're being creative in how

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they're using AI in their day to day.

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And just build on, on the early wins.

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And I think, you know, as, as this comes along, AI is so new, you know, it's a,

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it's a space where we're all gonna be in this together, kind of learning as we go.

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But it should be a really exciting time.

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It should be a transformative time for our, our industry and,

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you know, society in general.

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Fantastic.

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Well said.

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AI's awesome.

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Give it a try.

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Just do something.

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Don't, don't let, you know, as, as Tom said, don't let perfect

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get in the way of better.

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So love that.

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If you are using some great AI tools, I would love for you to share.

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You can throw 'em in the comments if you're watching on YouTube

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or if you're on social media.

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Feel free to email if you have questions around AI tools.

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As Tom said, we're all in this together, so let's work together to figure out

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what you know is working for you.

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Tom, thanks again.

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Thanks for speaking with me at Parcel Forum.

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Thanks for being here and just being such a great supporter of the podcast,

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and it's been wonderful having you.

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Yeah, always a pleasure, Lori.

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And excited to see what, what people come back to us with.

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So appreciate it.

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Awesome.

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We'll see you all next time.

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