AI-Powered Route Optimization Cuts Delivery Costs by 32%
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    Case StudyLogistics & Supply ChainGenerative AI

    AI-Powered Route Optimization Cuts Delivery Costs by 32%

    HashDev Team Sep 5, 2024 7 min read

    About the Client

    Client

    Regional Courier Network

    Location

    Chicago, USA

    Size

    300+ vehicles

    The Challenge

    1

    Dispatchers were manually planning routes for 300+ vehicles daily, leading to inconsistency.

    2

    Fuel costs were escalating due to suboptimal routing and empty return trips.

    3

    On-time delivery rate had dropped to 74%, threatening key contracts.

    Our Approach

    1

    Analyzed 18 months of historical route and delivery data to train ML models.

    2

    Built a constraint-based optimization engine accounting for time windows, vehicle capacity, and traffic.

    3

    Integrated real-time traffic feeds from HERE Maps for dynamic rerouting.

    The Solution

    Deployed AI route planning engine that generates optimized dispatch plans in under 60 seconds.

    Built mobile driver app with turn-by-turn navigation and live order status updates.

    Created operations dashboard with fleet utilization, SLA tracking, and fuel analytics.

    Results & Impact

    -32%Delivery CostPer-delivery cost reduction through optimized routing
    94%On-Time RateImproved from 74% to 94% within 90 days
    $180K/yrFuel SavingsAnnual fuel cost reduction
    -85%Planning TimeDispatch planning time eliminated
    "The routing engine paid for itself in the first quarter. Our dispatchers now focus on exceptions instead of manual planning."

    Marcus Johnson

    VP Operations, Regional Courier Network

    Technologies Used

    PythonTensorFlowReactNode.jsPostgreSQLHERE Maps APIReact Native

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