GXO’s partnership with Datasparq, an artificial intelligence (AI) specialist, has resulted in the implementation of AI technology within Iceland’s supply chain, leading to significant improvements in environmental sustainability and operational efficiency. The use of AI has allowed for a reduction in the distance traveled by over 900,000km, resulting in a staggering 25,000 litres decrease in annual diesel consumption and a considerable saving of 720 tonnes of carbon emissions to date.
Additionally, GXO has observed that AI solutions have made a substantial impact on the overall efficiency and cost savings of their operations. As a significant player, GXO operates four distribution centers in the UK on behalf of Iceland, and all of these centers are set to adopt Datasparq’s AI solutions. These distribution centers serve over 1,100 Iceland stores nationwide.
According to Steve Pennington, Iceland’s Supply Chain Director, “Minimizing 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.”
Speaking to Martin Atkinson, Managing Director of Grocery at GXO, he explains GXO’s motivation behind deploying AI solutions. He stresses that AI has significantly impacted route optimization by enabling the examination of multiple scenarios within 24 hours, a feat that would have taken traditional route planners about a week per scenario.
Atkinson acknowledges that while AI tools provide multiple potential answers, there is a need for human expertise to interpret and select the most suitable option. He highlights that GXO’s collaboration with Datasparq has been essential, as their partnership has allowed the refinement and successful implementation of AI solutions within their operations. He also emphasizes the potential for AI to become a fully operational daily planning tool in the near future.
GXO emphasizes that Iceland has provided positive feedback on their deployment of AI solutions, with plans to deploy the solution into other depots due to its early success. Furthermore, GXO is looking to employ AI in its warehousing and distribution network by working with suppliers to improve efficiency and support the safety of its employees.
