Advanced artificial intelligence (AI) and machine learning technologies are revolutionizing last-mile delivery fleets during the busy holiday period. From dynamic routing to smarter package handling, here’s how AI is helping fleets stay efficient and stress-free this season.
Tackling Holiday Challenges
While the holidays bring a sense of joy and celebration, they also introduce logistical headaches for last-mile fleets. Icy roads, heavy traffic, and demanding schedules put extra pressure on drivers and planners. Add to that the risks of driver fatigue from longer hours and increased nighttime routes, and the stakes are even higher.
“Drivers are being asked to deliver more parcels in the same amount of time, which can add a lot of stress,” noted Dr. Suzannah Hicks, AI strategist at Merchants Fleet.
AI vs. Traditional Data Analysis
The shift from traditional data analysis to AI-powered insights is changing how fleets operate. Hicks explains that while traditional telematics data can tell managers what happened in the past, AI dives deeper by offering predictive and prescriptive analytics.
“A vehicle generates hundreds of data points daily,” said Hicks. “While humans can analyze small amounts of this data, they’re limited by time and volume. AI goes a step further, helping fleets move beyond ‘what happened’ to ‘what could happen and how to address it.’”
With AI and machine learning, fleets can process massive sets of real-time and historical data to optimize workflows as they happen. Over time, these AI systems only improve, using feedback to fine-tune their predictions and recommendations.
“Ultimately, AI acts as a force multiplier, allowing fleets to accomplish tasks that managers and route planners simply don’t have the time or personnel to handle,” Hicks said.
Smarter Package Scanning and Sorting
For fleets managing a surge in deliveries, AI simplifies package handling. Tools like Scandit use machine learning to streamline drivers’ workflows, particularly with their “matrix scan” feature.
Instead of scanning barcodes one by one, drivers can capture an image of an entire pallet. Scandit’s augmented reality technology overlays sorting and routing information directly onto the image, showing drivers which packages to deliver first or which might belong to other routes.
“Rather than scanning each [package] individually and then maybe detecting some exceptions too late,” Floerkemeier said, “our technology really allows you to confirm that you picked up all the packages and that they are the right packages.”
This approach doesn’t just make loading faster—it also simplifies the process later. When drivers are searching for parcels in transit, AI helps them locate items more quickly, minimizing time spent rummaging in the back of the van.
“Making that process as efficient as possible—finding items quickly and ensuring accurate deliveries—can make a meaningful impact on driver workflows,” Floerkemeier added.
Dynamic Routing Powered by AI
The holiday season comes with unpredictable challenges, from bad weather to increased traffic volumes. For delivery fleets relying on fixed route assignments, inefficiencies can cost time and money.
Dynamic routing powered by AI changes the game. Instead of sticking to static routes, AI systems assess delivery updates and traffic conditions in real time. For example, if one driver is running late due to a high delivery volume, AI can allocate some stops to a nearby driver with fewer packages.
Hicks emphasized that AI’s adaptability is key during unforeseen events, such as vehicle breakdowns.
With AI, “you can make changes on the fly,” Hicks said. “AI allows for a fleet manager to make those changes as they’re happening in real-time, as new things are introduced.”
Beyond improving operations, dynamic routing helps reduce driver fatigue—an essential consideration during the busy season—and keeps customers satisfied with on-time deliveries.
Fleet Managers Are Taking Note
More fleets recognize the potential of AI to alleviate holiday pressures. A survey commissioned by Merchants Fleet found that 88% of respondents agree that AI will reduce operational stress and become an essential support tool for busy fleets.
The 2024 Holiday Benchmark and Future of AI
Hicks believes that as fleets begin scaling up their AI experiments this season, the impact will become increasingly noticeable.
“This year was about testing and learning,” she stated. “Fleets sought to understand the art of the possible when it comes to AI, exploring what they could achieve with the data they have.”
She predicts that next year, AI will be more widely adopted across the last-mile industry, leading to more efficient holiday operations.
With its ability to address real-time challenges, adapt workflows, and optimize delivery processes, AI is steering last-mile delivery fleets toward a more efficient, stress-free future. There’s no better time than now for fleets to unlock the potential of this game-changing technology.
Source: FleetOwner
