Reshaping 3PL Operations: Machine Learning Approaches to Mitigate and Manage Damage Parameters

Abstract

In the third-party logistics (3PL) environment, it is very important to reduce damage parameters, increase operational efficiency and reduce costs. This study aims to develop strategies for reshaping 3P operations by analyzing the parameters involved in damage control with machine learning. The logistics sector is gradually growing in the world and the potential of the sector is better understood over time. Damage to products in the logistics sector, especially during transportation and storage, not only causes financial losses but also affects customer productivity and operational efficiency. With the use of artificial intelligence techniques, it is possible to determine consumer expectations, predict damage losses, and develop innovative strategies by applying machine learning algorithms. At the same time, options such as driverless vehicles, robots used in storage and shelves, and the easy use of big data within the system, which have emerged with artificial intelligence, minimize errors in the logistics sector. Thanks to the use of artificial intelligence in the logistics sector, businesses are more efficient. This study includes an estimation study in the field of error parameters for the logistics service sector with machine learning methods. In the application, real data of a 3PL company for the last 5 years is used. For the success of 3PL companies, warehousing and undamaged delivery of products are of great importance. The fewer damaged products they send, the more they increase their value. The company examined in the study kept its damage data and wanted it to be analyzed so that it could take precautions accordingly and follow a more profitable path. For this reason, the study focuses on data on errors and damages. This study shows what kind of problems can occur in such a company and how the 3PL company can evaluate the problems to increase customer service quality and cost efficiency.