TransportationCase Study

UPS Capital: AI-Powered Address Scoring Cuts Package Theft Losses by 35%

UPS Capital: AI-Powered Address Scoring Cuts Package Theft Losses by 35%

·13 min read
UPS CapitalLogistics & Supply Chain InsuranceSubsidiary of UPS · Serves 500+ SMB merchants · Processes billions of delivery data points

Key People & Companies

DeliveryDefense Address Confidence

UPS Capital · Internal

UPS Capital

Mark Robinson

President at UPS Capital

Pinaki Mitra

Pinaki Mitra

Vice President, Data Science & Machine Learning at UPS Capital

UPS

John Kutay

John Kutay

Director of Product, Data & AI at Striim

Striim

real-time data integration and streaming for DeliveryDefense

BigQuery

Google Cloud · Data Warehouse

+ 11 more entities in the full study

Key Results

  • SunJoy, a UPS Capital customer, reduced losses by 35% with DeliveryDefense by redirecting shipments to safer locations or adding adult signatures in response to high-risk delivery alerts, according to a Google Cloud blog post.
  • The system identifies that addresses with low confidence scores face nearly 63 times higher likelihood of experiencing a problem reported after delivery compared to high confidence scores. As Mark Robinson told CBS News, 'About 2% of addresses will be considered low confidence, and we're seeing that represents about 30% of losses our customers are having.'
  • A UPS Capital analysis showed that by redirecting packages scoring below 800 to UPS Access Point locations, businesses could cut losses by 30-40% while impacting only 10-15% of orders and less than 2% of the overall customer base, per the company's data analytics findings.
  • + 4 more results inside

DeliveryDefense empowers merchants to select optimal approaches for seamless and successful deliveries, prioritizing the customer experience. By proactively identifying and addressing potential shipping issues, DeliveryDefense data ensures a smooth customer journey. Merchants can leverage alternative options, such as nearby UPS Store locations or other convenient access points, to optimize delivery outcomes.

Mark Robinson, President at UPS Capital

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