ParcelLab, a specialist in post-purchase experience software, has launched a new AI tool that allows retailers to forecast returns volumes and identify trend changes more accurately.
The Returns Forecast AI tool has been purpose-built so retailers can anticipate and mitigate the financial impact of returns, the firm said in a statement. By estimating inbound parcels for retailer warehouses, retailers can better plan warehouse resources, as well as reduce processing times and operational costs.
One of the key challenges for today’s warehouse managers and logistics specialists is gaining enough visibility into returns so they can incorporate peak seasonality and historic data patterns into their forecasts. Through the new tool, the company is aiming to replace manual, inbound forecasting processes with data-driven AI insights to enhance resource planning and drive operational efficiencies.
Operationally, the ability to accurately predict returns can lead to substantial cost reductions by optimising staffing levels and minimising the costs associated with returned inventory such as transportation, handling, and processing costs.
The solution works by generating a predictive returns analytics report so retailers can plan to avoid over or understaffing, incorporating custom peak and sales periods into their forecasting. Returns Forecast AI also enables retailers to better understand reasons for returns, and identify product improvements to reduce future returns.
“The increasing number of returned parcels presents a unique challenge to retailers, who need better visibility to understand trend changes, manage staffing levels, reduce processing times, and create effective distribution plans,” said Tobias Buxhoidt, Founder and CEO of parcelLab.
“With parcelLab’s Returns Forecast AI, we’re giving warehouse managers and logistics specialists the power to turn that challenge into a business opportunity with a tool they can self-configure to visualise patterns and measure percentage errors,” he added.
