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GXO turns to AI to improve its route planning in the UK

GXO Logistics says it has successfully deployed AI solutions by Datasparq that have helped to “boost efficiency, generate cost savings and reduce environmental impact" through transport route optimisation.

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The partnership has been active since 2021 and has resulted in the creation of a bespoke route optimisation tools for customers, including the Iceland supermarket chain.

GXO states that Iceland has significantly benefited from the AI solution thanks to better route efficiency.

For instance, the distance driven from one depot has been cut by over 900,000 kilometres per year, decreasing diesel consumption by over 25,000 liters and delivering over 720 tonnes of overall carbon emission savings to date.

GXO also claims that its drivers can now focus on “higher-value activities”, such as improving productivity and job satisfaction.

Commenting on the company’s use of AI, Gavin Williams, GXO Managing Director, U.K. & Ireland, said:

“We continue to invest in unparalleled technology solutions to better serve our customers, helping them boost efficiency and productivity as well as achieve their ESG goals. With our continued deployment of artificial intelligence, we now have even more opportunities to add value for our customers by enhancing all aspects of their logistics needs — from sorting to picking, packing and transportation.”

Steve Pennington, Supply Chain Director, Iceland, added:

“Iceland was the first food retailer internationally to join the Climate Pledge, a commitment to be net-zero carbon by 2040. Minimizing road miles and reducing fuel consumption across our fleet, without sacrificing outstanding customer service, is a top priority for us as we work towards this goal. With the power of new technologies such as AI, and strong partnerships with GXO and Datasparq, we are one step closer to a more sustainable future.”