It's not like I don't know that Christmas is on December 24th. And at the latest, when the first Christmas treats appear on the supermarket shelves after the summer holidays, I am forewarned. Actually, I should hurry up with my Christmas shopping then. Or at least start thinking about what I want to give as gifts. Nevertheless, I'm always somehow running late. Like most Germans, I suppose. More than sixty percent of all gifts are bought only in December. Twenty-five percent even just a good week before Christmas Eve. A huge challenge for retailers.
The Christmas season is the most profitable time of the year for retail. Some industries generate up to 25 percent of their annual sales during this period. So nothing should go wrong: the shelves must always be well-stocked, logistics must work smoothly, and the online shop must run stably. Because more than half (link in German) of gifts are now ordered online. And often at the very last minute.
It's good when artificial intelligence (AI) comes to Santa's aid. In recent years, the use of AI has increased enormously and plays a crucial role in managing the Christmas rush.
How AI ensures that Christmas gifts arrive on time
But how exactly does AI support retail during this hectic time? In logistics, AI ensures more efficient processes. It helps with route planning and optimizes delivery times by considering traffic jams and other traffic issues in real-time. This is especially important when orders come in shortly before Christmas and need to be delivered quickly.
AI systems analyze sales data and predict the demand for certain products. This allows inventory to be managed optimally and shortages can be avoided. So I can be sure that my Christmas gift is available when I finally know what I want to buy. And, the supply of Christmas treats like dominoes and chocolate Santas is definitely secured. A well-stocked warehouse is therefore no coincidence, but the result of precise AI analyses.
Christmas is parcel time – But when will they arrive?
Where are my parcels? Help, I'm not at home and my package needs to be delivered to my neighbor! For service inquiries about packages, customers can now call without long wait times and 24/7. The AI-powered customer service solution recognizes the concern, such as information about shipment status, transit complaints, and pickup codes for deliveries. The transmission of the specific delivery time frame, including additional delivery information, is fully automated in self-service. Through a conversational AI platform, tens of millions of customer calls per year can be qualified and, for simpler use cases like shipment inquiries, even fully automated. Up to 1500 parallel calls are possible.
© Image created with the support of ChatGPT (OpenAI) by Nick Schneider
Expensive freight space - When AI packs the sleigh
Space on Santa's sleigh is limited. That's why it has to be well packed. To ensure that as many parcels as possible fit on the sleigh and that every gap is used, the AI calculates the best way to pack which parcel – and where. Air freight is one of the most expensive modes of transport. A case for artificial intelligence: FIEGE Air Cargo Logistics, a subsidiary of the FIEGE Group, serves Lufthansa Cargo AG at Frankfurt Airport, Germany's largest commercial airport. An intelligent solution from Deutsche Telekom is now checking the optimum loading of the air freight pallets. It replaces an analogue, time-consuming process.
© Image created with the support of ChatGPT (OpenAI) by Nick Schneider
Only the best for Christmas – From baked apples to warehouse logistics
Fruit and vegetable suppliers move thousands of pallets of fruits and vegetables like berries, apples, asparagus, and tomatoes - every day. In their year-round cooled warehouses, the goods are sorted and prepared for further transport to grocery retailers, ensuring they arrive fresh in stores the next day. To make this work, AI brings order into the warehouse. A camera at the gate captures all pallets as they pass by via a barcode. It documents the type of goods and ensures that employees can determine the position of each pallet at any time. So, for Christmas, our baked apples are always fresh.
© Image created with the support of ChatGPT (OpenAI) by Nick Schneider
No gift gets lost – Use of AI in rail freight transport
Freight cars are indispensable in freight transport. To ensure nothing gets mixed up or lost, correct and rapid recognition of car markings in marshalling yards is essential. Using cameras and AI, the labeling of freight cars can be read and digitally evaluated – a challenging task given the variety of car types, different designs and labeling formats, and the varying external conditions of the wagons. This is a great help for those working on the track bed, who no longer have to stay outside as long in winter weather.
© Image created with the support of ChatGPT (OpenAI) by Nick Schneider
Oops, it's Christmas again! Now let's hope there's no backlog in order processing!
Companies receive orders in various ways and formats. For emails with PDF attachments, manual rework is often necessary to process the orders correctly. Customers often use familiar product names out of habit, even though the manufacturer has long since established different names. For the order, the correct item number, quantity, and price often have to be manually recorded. AI helps automate processing these very individual and complex documents. The time savings compared to the manual process can be up to 70 percent – time that is especially valuable during the Christmas rush.
© Image created with the support of ChatGPT (OpenAI) by Nick Schneider
Shining eyes instead of tears under the Christmas tree - Gifts without quality defects
No matter what is produced: after many different processing steps, there is always a quality control at the end. Usually, specially trained employees inspect the goods. This time- and labor-intensive inspection process can be replaced by AI-supported procedures. In optical quality control, the condition of products along the entire production line is captured using video cameras. The collected data is then checked for defects. Even small material defects can be detected through AI video analysis, ensuring customer satisfaction not only at Christmas but all year round with new products.
© Image created with the support of ChatGPT (OpenAI) by Nick Schneider
No theft during the Christmas season - Hacker protection and cybersecurity with AI
During the Christmas season, online shopping booms, and many people do their shopping conveniently from home. But how safe is it? Secure Access Service Edge (SASE) technology ensures that online shopping experiences are secure and stable. This is particularly important in a time when many people are shopping online simultaneously. Thanks to SASE, customers can be assured that their payment information and personal data are protected.
© Image created with the support of ChatGPT (OpenAI) by Nick Schneider
Secure online shopping: How AI protects your data
With the rise of online shopping, the risk of cyberattacks increases. Telekom's Cyber Security Center alone registers up to 40,000 attempted attacks per minute. Here, AI-based security systems help to never lose sight of the security situation. They monitor the IT infrastructure around the clock and immediately detect unusual activities. For retail, in the high-sales Christmas season, securing IT systems and payment functions is especially important.
So, artificial intelligence not only helps optimize transport, logistics, and inventory management but also plays a central role in IT security in online retail. This ensures that everything runs smoothly even in the hectic pre-Christmas period and that the gifts are under the Christmas tree on time.
Maybe next year, I will ask an AI Chatbot for help with my Christmas shopping. As for now, I'll sit back and relax with a cup of tea, enjoying a chocolate Santa and the anticipation of Christmas – even if I'm again a bit late with my presents.
PS: The photogallery shows how AI envisions our solutions for Christmas. Enjoy the pictures.
Related links
When will my parcel arrive?
When AI packs the sleigh
From baked apples to warehouse logistics (link in German)
Use of AI in rail freight transport (link in German)
No backlog in order processing (link German)
Gifts without quality defects
Hacker protection and cybersecurity with AI
Writing wish lists with AI chatbots
