Pickup and delivery (P&D) represents one of the largest cost centers for LTL carriers, second only to linehaul, while also being a highly customer-facing and complex operation. During a recent panel discussion, Webb Estes, President & COO of Estes, and Ravi Ahuja, Founder & CEO of Optym, emphasized the role AI is playing in transforming pickup & delivery.
Panelists including Saia EVP of Operations Patrick Sugar, Estes Express VP of Continuous Improvement Howard Cochran, Southeastern Freight Lines CIO Woody Lovelace, and Oak Harbor Freight Lines VP of IT Robert Rosales shared their insights in how AI is helping reduce costs, automate decision-making, and enhance operational flexibility.
Dynamic routing: adapting in real time
Unlike static routes, AI-powered dynamic routing lets fleets quickly adapt to daily fluctuations, like freight surges or weather disruptions, to reduce unnecessary mileage while boosting driver productivity and delivery reliability.
Carriers, like Saia, can use this flexibility to grow their operations while maintaining efficiency and customer satisfaction in rapidly changing environments or new markets.
Customer-specific insights: raising the service bar
AI goes beyond operational efficiency by enhancing customer experience through tailored service. By integrating customer-specific data, such as preferred delivery times and equipment needs, AI enables LTL carriers to exceed those expectations.
These tools can account for factors like holidays, cut-off times, and specialized requirements, ensuring accurate, personalized service. This proactive approach fosters stronger relationships with customers.
Supporting change management: ease of use
AI systems require balancing diverse features sets and minimal training while delivering maximum impact.
Using an application with a user-friendly design accelerates onboarding and empowers teams to adapt quickly, allowing companies to unlock the benefits of AI without being bogged down by lengthy learning curves or complex implementations.
Leveraging data: smarter decisions for P&D
AI thrives on turning data into actionable insights for advanced decision support. Robert Rosales, VP of IT at Oak Harbor Freight Lines, highlighted how RouteMax helps planners make smarter adjustments by showing the cost impact of routing changes in real time.
Automating repetitive tasks: freeing up human potential
Automation is central to AI's impact on P&D, streamlining tasks like route assignment and pickup scheduling. Planners and dispatchers save hours previously spent on manual processes, as AI takes over repetitive functions.
Patrick Sugar shared how Saia's teams were able to shift focus to higher-value activities, such as resolving driver challenges or optimizing dock operations. With AI, companies reduce human error, accelerate decision-making, and improve overall planning quality, ultimately creating a more productive workforce.
Predictive planning: seeing tomorrow today
Predictive planning leverages AI to anticipate where pickups will occur, ensuring vehicles are positioned optimally after deliveries. Using historical shipping data and patterns, AI can identify potential pickups before they are even called in, aligning them seamlessly with drivers’ routes to reduce miles and inefficiencies.
This approach not only reduces deadhead miles but also allows carriers to better align supply with demand, even during peak periods, ultimately enhancing service and lowering costs.
Integration and scalability: building for the future
Maintaining clean data and integrating AI systems seamlessly are two of the biggest challenges for LTL carriers modernizing their P&D operations. As Robert Rosales, VP of IT at Oak Harbor Freight Lines, explained, technical integration is often straightforward. However, data cleanliness presents a more complex challenge, requiring coordinated efforts across teams.
To address these challenges, carriers are adopting processes to validate and maintain accurate data while ensuring integration stays flexible and scalable. By combining clean data with robust integration strategies, LTL carriers can fully leverage AI to enhance decision-making and improve overall operational efficiency.
Building in-house vs. buying third-party
LTL carriers often face build or buy decisions across their operations, including with AI tools. Webb Estes shared his insights into this topic during the webinar. He reflected on Estes’ experience building their internal system several years ago and why eventually they moved to a third-party solution.
Third-party solutions provide continuous advancements and ongoing support that can't always be matched by internal teams. Third-party solution provides also deliver ready-made integrations and updates to keep up with industry demands, making them a compelling option for carriers looking to stay ahead without reinventing the wheel.
The bottom line - excellent return on investment
Implementing AI solutions can provide P&D operations with measurable improvements, as Howard Cochran shared. Returns, gate times, missed appointments, and density per stop are all key metrics carriers can focus on improving with the help of AI.
However, successful adoption goes beyond metrics. It involves considering factors such as integration, implementation, outsourcing, and ensuring the ROI of these solutions. These advancements also prompt ongoing discussions about balancing technology with human expertise for long-term success. Watch the full recording for actionable insights and real-world examples from industry leaders.
To hear more about how top LTL companies are using AI to transform P&D, watch the full webinar recording for an in-depth discussion.