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GXO Logistics collaborates with Datasparq to successfully deploy AI solutions, boosting operational efficiency and reducing environmental impact through transportation route optimization.
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The company's partnership with industry leaders like Körber's Operator Eye solution transforms its warehousing operations, focusing on automation efficiency, picking accuracy, and streamlined processing times.
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GXO's AI-driven route optimization delivers significant environmental benefits, exemplified by its partnership with U.K. retailer Iceland. Reducing road miles, fuel consumption, and carbon emissions underscores GXO's commitment to sustainability.
GXO Logistics, a leading pure-play contract logistics provider, has unveiled the successful deployment of artificial intelligence solutions in its operations. Collaborating with Datasparq, the company has leveraged AI to enhance efficiency, reduce costs, and mitigate its environmental footprint through route optimization in transportation. Additionally, GXO is transforming its warehousing operations by partnering with industry leaders like Körber's Operator Eye solution to improve automation efficiency, enhance picking accuracy, and streamline processing times. This strategic integration of AI underscores GXO's commitment to operational excellence and prioritizing the safety and well-being of its workforce.
This collaboration yields remarkable results, particularly in tailored route optimization tools, exemplified by the operations transformation for renowned U.K. retailer Iceland. GXO expertly manages four distribution centers across three temperature ranges, diligently serving over 1,100 stores nationwide on Iceland's behalf. Applying cutting-edge AI technology within this complex network, spanning over 50 million kilometers annually, has delivered substantial benefits.
Steve Pennington, Supply Chain Director of Iceland, stated,
“Iceland was the first food retailer internationally to join the Climate Pledge, a commitment to be net-zero carbon by 2040."
[Source – Globe Newswire]
Minimizing road miles and reducing fuel consumption across their fleet without compromising customer service. Steve further mentioned that, with the incorporation of new technologies like AI and through their strong partnerships with GXO and Datasparq, they were progressing towards this goal.
GXO Logistics has positioned itself as an industry leader in automation, with approximately 30% of its revenue originating from automated solutions, a substantial increase compared to the industry average of 8%. In the first quarter of 2023, the company set a remarkable record by achieving a 64% year-over-year increase in total technology and automated solutions deployment. This demonstrates GXO's unwavering dedication to harnessing the power of artificial intelligence to optimize its logistics operations comprehensively. GXO remains on top of technological changes in the logistics industry, and keeps giving its customers more value by improving its speed, accuracy, and service quality.
Iceland's commitment to sustainability is underscored by the reduction of over 900,000 kilometers driven from a single depot each year, leading to a remarkable decrease in diesel consumption by more than 25,000 liters and a substantial overall carbon emission savings of over 720 tonnes. In addition, this strategic AI implementation empowers GXO drivers to allocate more time to high-value tasks, significantly enhancing productivity and job satisfaction. This success story exemplifies GXO's dedication to innovation, efficiency, and sustainable logistics solutions.