As forward-thinking manufacturers seek to enhance efficiency, streamline operations and drive down costs, artificial intelligence (AI) is rapidly emerging as a game-changer. One notable area where AI is making waves is in logistics optimization, a crucial aspect of manufacturing supply chains. Logistics and transport businesses are leveraging AI to solve key challenges that include: route planning and vehicle dispatching, driver shortages, rising fuel costs, safety and compliance, workflow automation, environmental impact and sustainability.
A major player in North American transport recognized the pressing need to optimize logistics costs related to vehicle travel between Canada and the US. The business needed new capabilities for its logistics planners and dispatchers to define optimal travel routes and improve vehicle management – ultimately enhancing route planning and reducing costs related to truck mileage, driver utilization and the frequency of return trips by empty vehicles following deliveries.
Taking a new route to efficiency
The client turned to CGI’s proven AI specialists to design, develop and operationalize an AI-based solution. AI’s unprecedented power to analyze vast amounts of data related to freight transport and improve processes and decision-making was seen as the way forward to solve the client’s challenges. Our AI specialists produced a precise and compelling proof-of-concept that demonstrated AI’s ability to meet the client’s key performance indicators (KPIs) – reducing delivery delays by 5%, empty-vehicle mileage by 10% and overall vehicle mileage by 10%.
The client recognized the significant advantages that AI could deliver and decided to operationalize the proof-of-concept and include additional functionality to enhance efficiency related GPS data use, driver break times and management of trailers during deliveries. CGI dedicated a versatile SWAT team capable of understanding complex business data and mastering algorithms, constraint programming and route optimization. Our solution integrated an Operations Research algorithm and Machine Learning to deliver service-time prediction, trip identification and continuous learning from planners' feedback. The project included a user-friendly interface that gives planners and dispatchers a route optimization tool.
reducing delivery delays by 5% empty-vehicle mileage by 10% and overall vehicle mileage by 10%
Key features & benefits
- Optimized mileage, reduced empty mileage, lower costs and carbon footprint
- Reduced wait times for order delivery and pick-up
- Optimized number of orders to deliver and fewer delivery delays
- Improved planning and dispatch process and faster dispatcher planning
- Greater visibility and control of operational data through data-based insights
Conclusion
The client’s transport business is now on a new path to efficiency and cost management thanks to the adoption of AI. By integrating AI technologies into operations, manufacturers can enhance product quality, reduce operational costs and gain a competitive edge in the market. Embracing AI in manufacturing is not only a strategic investment but also a catalyst for innovation and sustainable growth.
CGI is a business-driven team that designs custom AI models to help solve each client’s unique challenges in the fast-changing digital economy. We integrate specialized AI models with software engineering best practices and standards, including data privacy and security compliance, to make every client’s business future-ready. CGI takes a scientific approach to evaluating AI, with a design focus to accelerate time to insights while maintaining human decision-making for responsible AI use.
