Overview

Same-day logistics players are crucial for the growth of eCommerce, particularly in urban areas. With eCommerce platforms facilitating continuous sales from multiple vendors, the logistics challenge has intensified. Logistics operators must pick up items from various decentralized locations and deliver them, handle dynamically generated delivery orders, and optimize order delivery for a win-win scenario among stakeholders (customers, eCommerce platform providers, vendors, logistics providers, and riders). In this industry, route optimization and rider dispatch is essential to increase earning potential for riders and reduce carbon footprint.

Our Innovation

• An advanced AI planning and dynamic route optimization and driver job recommendation tool, which leverages the patented Collaborative Urban Delivery Optimization (CUDO) technology from SMU as its core framework
• An intuitive and easily implementable hierarchical optimization approach based on multiple strategies for order dispatching, which can dynamically adapt to dispatch orders to vehicles according to the status of orders and by considering the travel distance and overtime.
• A reinforcement learning algorithm that dynamically decides which jobs should be recommended to which riders.

Benefits

• Pilot implementation by a licensee of this technology indicated 20 percent improvement in efficiency and save 500 hours in delivery time.
• Experimental studies demonstrate the stability of the hierarchical optimization approach when executed on large-scale real data sets.
• The result on real-world instances shows that the hierarchical optimization approach outperforms the current practice and has broader applicability.
• When more companies deploy such technology, they will reap the benefit of operational efficiency, and the riders will benefit from better job recommendations and better income and reduce carbon foot-print.
• Number of saved trips help to reduce carbon footprint.
• Optimisation of routes help to maximize earning potential for a driver/rider .

Applications

The underlying AI technology can be applied in eCommerce Logistics Sector :

• Same-day delivery / logistics planner
• Route optimization
• Logistics operational efficiency improvement for urban logistics
  
   

If you're interested in this technology, please contact KTC.