Iceland boosts route efficiency with AI

Since 2021, GXO has been working in partnership with Datasparq, an end-to-end AI and data science services provider. Together, the companies have applied technology to develop bespoke route optimisation tools for customers, such as Iceland. GXO operates four distribution centres across three temperature ranges, servicing over 1,100 stores nationwide on behalf of Iceland across a complex network covering over 50 million kilometres per annum. 

By improving route efficiency, the retailer has reduced the distance driven from one depot by over 900,000 kilometres per year, decreasing diesel consumption by over 25,000 litres and delivering over 720 tonnes of overall carbon emission savings to date. Further, GXO drivers can now focus on higher-value activities, improving productivity and job satisfaction. 

Iceland supply chain director Steve Pennington, says: “Iceland was the first food retailer internationally to join the Climate Pledge, a commitment to be net-zero carbon by 2040. Minimising road miles and reducing fuel consumption across our fleet, without sacrificing outstanding customer service, is a top priority for us as we work towards this goal. With the power of new technologies such as AI, and strong partnerships with GXO and Datasparq, we are one step closer to a more sustainable future.” 

“Customers choose GXO not only for our world-class logistics expertise, warehousing and transportation fleet, but also for the market-leading innovative technology we deploy across our network,” adds Gavin Williams, GXO managing director, UK & Ireland. “We continue to invest in unparalleled technology solutions to better serve our customers, helping them boost efficiency and productivity as well as achieve their ESG goals. With our continued deployment of artificial intelligence, we now have even more opportunities to add value for our customers by enhancing all aspects of their logistics needs — from sorting to picking, packing and transportation.”