Artificial intelligence is transforming retail operations, from inventory planning and customer service to fulfilment and delivery management. However, can it really connect an unlimited number of carriers and create an infinitely scalable delivery network? Rory O’Connor, founder and CEO, Scurri dispels the myths.
While retailers undoubtedly benefit from a multicarrier strategy, carrier integration is rarely straightforward. Success depends not on connecting as many carriers as possible, but from intelligently orchestrating the right mix of carriers to balance cost, resilience, delivery performance and customer experience.
For retailers, delivery has become one of the most important battlegrounds in customer experience. Consumers expect choice, convenience, flexibility and certainty. They want to select delivery options that fit their needs, receive accurate delivery updates and trust that their orders will arrive when promised.
At the same time, retailers are under mounting operational pressures. Carrier costs continue to rise, margins are squeezed, peak trading periods create capacity constraints, international deliveries introduce regulatory complexity and customer expectations as always continue to increase regardless of economic conditions.
Against this backdrop, relying on a single carrier has become increasingly risky. A carrier may offer excellent service levels today, but capacity issues, labour shortages, weather events or network disruptions can quickly impact performance. Retailers therefore need access to multiple delivery partners to provide resilience, flexibility and the ability to offer different delivery services to different customer segments.
This has led many retailers to adopt multicarrier strategies, often supported by delivery management platforms that simplify integration and carrier selection. However, somewhere along the way, a new problem has come up. Because AI can automate many aspects of integration and delivery management, some assume the logical conclusion is to connect as many carriers as possible. More carriers must automatically mean more flexibility and better customer outcomes but in reality, the relationship is not that straightforward.
Every carrier relationship introduces operational overhead and integration is only the beginning. Retailers must map services, test workflows, align tracking events, manage labels, establish reporting processes and maintain ongoing operational governance. Customer Service teams need visibility into different delivery journeys, Operations must monitor performance and manage exceptions, and Finance needs to reconcile varying pricing models and invoices.
The complexity grows with every additional carrier. This is particularly true because carriers are not interchangeable. Each has different strengths and weaknesses – some excel at next day domestic delivery, others specialise in international shipments, some provide strong returns capabilities while others focus on oversized goods, white-glove services or specific geographic regions.
Simply adding more carriers does not automatically improve delivery performance. In fact, beyond a certain point, additional complexity can outweigh any incremental benefit. The challenge therefore shifts from integration to orchestration and this is where AI can deliver significant value.
Rather than helping retailers connect an endless list of carriers, AI is increasingly being used to make smarter decisions about which carrier should be used for each individual order. It can evaluate multiple variables simultaneously, including destination, product characteristics, delivery promise, carrier performance, cost, customer preferences and capacity constraints. The objective is not to maximise carrier numbers but to optimise carrier selection.
Consider a retailer selling a broad range of products. A low value accessory may be best suited to an economical standard delivery service. A loyal customer may warrant a premium next-day option. A high value television may require a specialist two person delivery provider. An international order may benefit from a carrier with customs expertise in the destination market.
The most effective delivery strategies recognise these differences and dynamically match orders to the most appropriate service. As a result, delivery management changes from being a logistics function into a competitive advantage.
Retailers that intelligently orchestrate their carrier network gain several benefits. They can reduce delivery costs without sacrificing customer experience, improve resilience by redistributing volume when disruptions occur, support growth into new markets more efficiently and perhaps most importantly, they can create more reliable and predictable delivery experiences for customers.
Having this resilience is becoming increasingly important. Major retail events such as Black Friday, Cyber Monday and seasonal peaks regularly place significant pressure on delivery networks. Retailers with limited carrier flexibility often struggle when demand exceeds capacity. Those with intelligently managed multicarrier networks are better positioned to maintain service levels and protect customer satisfaction.
The same principle applies throughout the year. Carrier performance naturally fluctuates due to weather, operational issues, labour availability and changing demand patterns. A retailer that can quickly adapt its carrier allocation has a significant advantage over one that is tied to a small number of rigid delivery options.
Ultimately, the future of delivery is not about building the largest carrier network possible. Nor is it about using AI to automate complexity for its own sake, but in recognising the practical limits to carrier integration and focusing instead on intelligent orchestration. AI should be viewed as a decision making tool that helps retailers balance cost, speed, reliability and customer expectations across a carefully selected ecosystem of delivery partners. Put more simply, aiming to consistently deploy the right carrier, at the right cost, for the right customer, at the right moment.
