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SEARCHBy harnessing the power of artificial intelligence and better algorithms, XPO logistics plans to optimize its less-than-truckload business.
XPO Logistics plans to optimize its less-than-truckload business with four new technology initiatives.
Credit: XPO
XPO Logistics has announced four new technology initiatives as part of the company’s LTL 2.0 optimization plan.
The optimizations target high-impact areas where the company wants to transform traditional approaches to serving customers, according to XPO chief information officer Mario Harik.
The first initiative is XPO’s linehaul bypass model. The company is piloting the use of new algorithms to assemble truckloads dedicated to direct movements of LTL freight. The linehaul bypass model promises to improve the efficiency of company trucks and trailers and purchased linehaul services by reducing multiple stops to a single destination.
XPO also wants to affect load-building through the use of artificial intelligence. Artificial intelligence tools and computer vision technology for cross-dock operators could help ensure that inbound pallets are loaded into the optimal trailers, in the right sequence, for the greatest possible efficiency during delivery. Intelligent load-building could also help limit damage.
The company also wants explore dynamic route optimization for pickup and delivery. XPO is piloting proprietary AI tools that set the sequence for each LTL driver’s pickups and deliveries and adjusts routes in real time based on traffic, road construction and other impacts to efficiency. This has increased the number of delivery and pickup stops per hour, improving asset utilization.
Lastly, XPO is developing pricing algorithms to predict LTL price elasticity. Using machine learning capabilities, the technology is being designed to forecast market conditions for future dates based on real-time supply and demand, as well as historical data and XPO capacity levels. This can enhance the speed and accuracy of responses to customer RFPs, according to XPO.
“Our technology is spurring growth across all the services we offer,” said Harik. “Two of these innovations – dynamic route optimization and linehaul bypass – are already in pilot. Given our capacity for innovation, our opportunity for creating value in LTL is nearly limitless.”
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