How AI Continues to Revolutionize Route Optimization
The technology behind route planning and optimization has evolved rapidly over the years. From paper maps to GPS navigation and routing software, leaders in the supply chain have adopted new technologies to identify faster, more fuel-efficient routes.
With the proliferation of AI across industries, it’s no surprise that 3PLs and freight brokers are using it to plan better routes. During my time with R+L Global Logistics, I’ve seen the benefits of using AI to plan freight shipments. In this article, I’ll share my insights so you can get the most out of AI for route optimization.
Reducing Fuel Consumption
If working for a 3PL for nearly 5 years has taught me anything, it’s that the cost of fuel plays a major role in shipping expenses. AI can’t lower the price of fuel, but it can help plan shorter, more efficient routes that reduce fuel consumption. This helps lower your overall transportation costs.
Improves Delivery Times
AI systems take into account all the factors that can affect delivery times, such as:
- Traffic
- Weather
- Road closures
- Delivery windows
By taking these factors into account, AI can recommend faster routes. AI can even reroute shipments as conditions change. By picking the fastest and most direct course, shipments spend less time in transit and arrive on time.
Learns and Improves
AI looks into the past so you can perform better in the future. It analyzes historical delivery performance and uses that information to improve future routing decisions.
Over time, AI can adapt to:
- recurring traffic patterns
- fluctuations in demand
- customer behavior
Safer Shipments
My experience with a 3PL has given me a behind-the-scenes look at all the effort that goes into planning a route that’s efficient and safe. AI is another tool that makes it easier to find safe pathways for freight to travel on. 3PLs and freight brokers can use AI systems to identify high-risk shipping pathways based on accident data. AI can also determine if a route has tolls, gradients, or low-clearance bridges.
My advice is to not view AI as a replacement for all the technology you already use to plan your shipments. Instead, view it as another tool in your toolbox that will help you plan optimized routes that benefit you and your customers.