XPO Logistics has announced four new technology initiatives at the core of its LTL 2.0 optimization plan. With an annual investment of over $450m, XPO develops its technology within a proprietary, cloud-based ecosystem.
XPO is piloting new algorithms to assemble truckloads dedicated to direct movements of LTL freight. Reducing the number of stops to a single destination, this linehaul bypass model is attempting to improve the efficiency of its LTL freight.
Using AI, XPO is trying to ensure that inbound pallets are loaded in the optimal trailers, and in the right sequence inside the trailers. XPO is further using AI, in its third initiative, where XPO is trying to optimise the route and sequence taken by drivers based on real time information on road works, traffic and constructions.
Finally, XPO is developing machine learning capabilities to predict LTL price elasticity. Using on real-time supply and demand, historical data and XPO’s capacity levels, the company will use the technology to forecast market conditions.
Mario Harik, CIO of XPO Logistics, said, “Our technology is spurring growth across all the services we offer. We’ve pinpointed four high-impact areas where we can lead the LTL industry in transforming traditional approaches to serving customers. Two of these innovations – dynamic route optimization and linehaul bypass – are already in pilot.”
Source: XPO Logistics
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