Improve Delivery Speed & Reliability

AI-driven route optimization for the supply chain and logistics industry reduces delivery times, cuts fuel costs, and improves customer satisfaction through faster, more accurate deliveries.

The Problem

Rising traffic congestion, unpredictable factors like road closures and accidents, and inefficient routing are significant challenges in logistics. These issues increase delivery times, inflate fuel costs, and reduce service reliability. Companies that fail to address these challenges experience higher operational costs, eroded customer trust, and reduced competitiveness.

The AI Opportunity

AI solutions dynamically optimize delivery routes by analyzing real-time data on traffic, weather, and road conditions. Companies implementing these solutions have experienced an increase in service levels by up to 65%, reflecting faster and more reliable deliveries. This directly enhances customer satisfaction and loyalty, which are critical for maintaining competitiveness.

Why It Matters

Efficient route optimization improves delivery speed and reliability while reducing costs. Businesses can lower environmental impact through reduced fuel usage, build customer loyalty with timely deliveries, and strengthen their competitive advantage by offering superior service.

Benefits & Impact

Cost Savings

Logistics costs are reduced by up to 15%, enabling better resource allocation and higher profit margins.

Time Efficiency

Delivery times are shortened, improving operational efficiency.

Improved Service Levels

Companies using AI solutions report up to a 65% improvement in service levels, delivering faster and more reliable customer experiences.

AI Methods & Models

Purpose: Continuously adjust delivery routes for efficiency using live data.
Why: Reduces delivery times and fuel costs while improving service reliability.
Tools/Models: Constraint optimization (e.g., OR-Tools), genetic algorithms, vehicle routing problem solvers.

Build Your AI Solution with Amii

As one of Canada’s three national AI institutes, Amii brings decades of expertise, advancing AI innovation and delivering industry solutions to your team. Whether you’re just starting to explore the possibilities of AI or are ready to develop advanced AI models, Amii is here to help.

Training

A successful AI solution requires both technical know-how and a strong understanding of your business. Our training aligns technical and non-technical teams, creating a shared language and fostering the collaboration needed for successful AI implementation.

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Strategy

We collaborate with your team to brainstorm, evaluate, and prioritize AI use cases aligned with your business goals, building your internal capacity along the way. Our experts then validate the top idea, positioning your team for a smooth transition into development.

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Development

Our unique approach places a full-time Machine Learning Resident within your team, supervised by Amii experts, to help build a custom AI solution. After the project, you have the option to hire the resident, ensuring continuity to deployment and expanding your internal AI capacity for future AI innovation.

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Sources

Veluru, C. S. (2023). A Comprehensive Study on Optimizing Delivery Routes through Generative AI Using Real-Time Traffic and Environmental Data. Journal of Scientific and Engineering Research, 10(10):168-175.

Álvarez, P., Serrano-Hernandez, A., et al. (2024). Optimizing Freight Delivery Routes: The Time-Distance Dilemma. Transportation Research Part A: Policy and Practice. Volume 190.

Vaddy, R. krishna. (2023). AI and ML for Transportation Route Optimization. International Transactions in Machine Learning, 5(5), 1–19.

McKinsey & Company, Succeeding in the AI Supply Chain Revolution (2021)