Inbound Logistics | October 2024

THELASTMILE Logistics Outside the Box

PHANTOM INVENTORY: Inventory that

HOLIDAY CREEP: N o, not an unwelcome house guest. The holiday creep phenomenon—retailers stocking holiday

AI HALLUCINATION: A fabrication by an artificial intelligence system. For instance, a predictive model used for

appears in software systems, but is not on store shelves or in the warehouse. This can happen as a result of theft, misplacement, weighing errors by consumers, or not tracking missing items. Boost inventory accuracy with regular checks as well as avoiding missteps such as scanning errors during goods receipt.

merchandise earlier each year—is a response to consumer shopping trends. Only 6% of consumers wait until December to start holiday shopping, a project44 2024 peak season report finds, and many shoppers start in August. So, embrace holiday creep and don’t let shipping deadlines creep up on you.

inventory management or logistics planning can generate inaccurate or false information about stock levels, delivery times, or other supply chain data, leading to misguided decisions. Guard against AI flights of fancy by vetting the data input as well as output. A human decision-maker should have the final say.

FICTITIOUS PICKUP: A scheme run by cargo thieves disguising themselves as legitimate carriers. This allows them to show up before a scheduled pickup and drive off with entire truckloads of cargo. Train your staff to scrutinize contact and company information and confirm positive

identification of drivers at the pickup point.

RETURN FRAUD: When a bad-faith actor exploits a retailer’s return policy to get refunds or replacements. Some examples include returning stolen or counterfeit items, wardrobing or free renting (using an item for a short time and returning it for a full refund), falsifying a receipt, or returning a cheaper item using a receipt for a more expensive one. To outsmart fraudsters, flag suspicious requests and identify repeat offenders.

PORCH PIRATES: Opportunistic thieves who swipe packages when they reach the last stop in their direct-to-

consumer journey: a consumer’s porch or front door. Shrink the window of opportunity to pilfer packages by providing consumers with an accurate shipment ETA.

Sources: RELEX; project44; Travelers

48 Inbound Logistics • October 2024

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