UPS Innovates AI To Fight Against Package Thefts

Explore how UPS is leveraging AI-driven DeliveryDefense to combat package theft, ensuring secure and successful deliveries. Discover the program’s impact on consumers and retailers.

KEY TAKEAWAYS

UPS employs DeliveryDefense, an AI-powered program, to reduce package theft by generating a Delivery Confidence Score.

The program leverages two years of UPS delivery data, offering alternative delivery solutions for high-risk addresses.

A significant rise in package thefts has been observed, with an estimated 260 million packages stolen in the U.S. last year.

UPS Capital’s Innovative Approach with DeliveryDefense

UPS, a global leader in logistics, has introduced an AI program named DeliveryDefense to combat the escalating issue of ‘porch pirates’ stealing packages.  Developed by UPS Capital, this program uses AI and machine learning to assess delivery risks. It analyzes two years of UPS’s delivery data, historical loss patterns, and address characteristics to generate a score indicating the likelihood of successful package delivery.

Mark Robinson, President of UPS Capital, emphasizes the program’s proactive approach to ensuring successful deliveries. Retailers can use this data to suggest alternative delivery options, like UPS Store locations or Access Points, thereby optimizing delivery outcomes.

The Growing Concern of Package Theft

Package theft is a burgeoning issue in the U.S., with Security.org reporting that 49 million Americans had a package stolen in the last year as of 2022. The median value of stolen goods was $50, amounting to a total loss of $2.4 billion. To combat this, DeliveryDefense employs billions of data points from UPS’s historical deliveries, producing a “Delivery Confidence Score” from 1 to 1,000.

When an address receives a low score, retailers can recommend safer alternatives like in-store pickup or delivery to a UPS Access Point. The tool, accessible to businesses of all sizes, integrates with merchants’ systems through an API, or through a web version for smaller customers. Additionally, consumers can manage their delivery preferences via the UPS My Choice program, which is utilized by over 100 million consumers.

Addressing Porch Piracy with AI and Data

UPS’s response to the surge in ‘porch piracy’ includes working with retailers such as Costco Wholesale to implement its AI and machine learning algorithms. These algorithms assign delivery addresses a confidence score based on specific data, guiding merchants on shipping decisions.

According to SafeWise, 260 million delivered packages were stolen in 2022, a significant increase from the previous year. In response, UPS and other logistics companies have introduced technologies like DeliveryDefense, an AI-powered tool that uses historic data and machine learning to evaluate the risk of delivery theft.

Competitors’ Strategies and the Role of Technology

UPS’s competitors, including Amazon, FedEx, and DHL, have also implemented strategies to prevent package theft. For instance, DHL employs a ‘signature first’ approach, while FedEx offers picture proof of delivery. Amazon provides various features, such as estimated delivery windows and key-in-garage delivery, to enhance package security.

Despite the prevalence of doorbell cameras, experts like Ben Stickle, a package theft expert, suggest that they may not effectively deter thieves. SafeWise data indicates that cameras alone are not a sufficient deterrent, highlighting the need for more robust measures like those employed by UPS.

As package theft continues to rise, solutions like UPS’s AI-powered DeliveryDefense become increasingly vital. These innovative approaches, relying on extensive data analysis and machine learning, offer a glimpse into the future of secure and reliable package delivery.