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A data-driven approach to last-mile delivery route optimization
Conventional wisdom tells us that the shortest distance between two points is a straight line.
However, for the specialists working in AI-powered route optimization at last-mile delivery leader Intelcom | Dragonfly, a much more nuanced approach is key to achieving the business success of our e-commerce retailers and the expectations of the consumers they serve. Highly advanced route optimization technology allows us to effectively deliver hundreds of thousands of parcels every day in vast, geographically diverse countries like Canada and Australia.
“The advanced technology we develop and implement
throughout our business is foundational in meeting our commitments to our clients,” says Kevan Saba, Head of Tech Product Management at Intelcom | Dragonfly. “Last-mile route optimization technology
lets us effectively orchestrate the delivery of parcels from our 95 stations to the hundreds of thousands of consumers who depend on us daily to receive their purchases and complete the e-commerce supply chain.”
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An efficient, AI-driven approach to last-mile route optimization
In its simplest form, the last-mile route optimization task is about determining the most efficient means of conveying an item from a central sorting center to an urban or rural address. But that definition oversimplifies the complex logistics operations required to ensure timely and cost-effective deliveries, in the face of disruptive weather conditions, challenging terrain, or varying population densities.
E-commerce retailers rely on precise, real-time logistics solutions to meet their delivery commitments no matter where their customers are located. It is up to Intelcom | Dragonfly to make that last-mile delivery process seamless, leveraging AI-powered route optimization to enhance efficiency, reduce delays, and ensure a superior consumer experience.
A smart route for every delivery
Last-mile route optimization technology also adapts delivery routes to accommodate geographic challenges such as the need to navigate extreme traffic congestion in crowded urban neighborhoods, for example. Or, as another example, the technology must calculate that the driver has to accommodate a ferry schedule in a coastal area.
Taking into account these factors enables us to provide the same delivery experience to all consumers, wherever they reside.
“Whether it’s geographic, weather-related, or issues of seasonality, there is no shortage of operational challenges we face every day,” says Alexander Etmanskie, Optimization director, at Intelcom | Dragonfly. “Our internal tech team has a keen understanding of those challenges and effectively tailors the last-mile route optimization framework to ensure the flow of deliveries remains constant.”
Sustainable deliveries
Beyond efficiency and driver safety, route optimization also allows Intelcom | Dragonfly to address its sustainability targets as a signatory of The Climate Pledge, a commitment to reaching net-zero carbon emissions by 2040. A vehicle that’s following the most efficient route during its daily deliveries minimizes fuel consumption, which then equates to a commensurate reduction in the production of greenhouse gas emissions.
Our route optimization technology also enables us to target delivery zones that need to be served by electric vehicles—usually because of urban density or topography—allowing us to offer guaranteed green deliveries in these regions.
Technology masters
Keenly aware of emerging logistics trends, Intelcom | Dragonfly remains confident that its AI-driven route optimization technology is best-in-class—a status achieved through continuous investment in R&D, tackling both the challenges and opportunities faced by the company and its e-commerce retail partners. As a measure of that success, the company forged a new record for deliveries completed in a single day during the recent holiday peak season.
While last-mile delivery rarely follows a simple, linear process, advanced route optimization technology provides the most efficient roadmap for fulfilling on-time delivery commitments and ensuring superior consumer satisfaction. “It’s a winning formula our people seek to prove, and improve upon, every day,” says Kevan.