Route optimization is one of the most critical aspects of transportation as it determines the most cost-efficient route in terms of cost & energy to supply goods on time. Route optimization helps logistic companies by eliminating manual processes to maximize operational and driver efficiency. However, with the integration of artificial intelligence in route optimization, it offers numerous benefits through collecting and learning from historical data to consistently analyse the best routes for drivers. Route optimization driven by AI can estimate the time required by a transportation company to deliver a certain volume of goods at the given docking centre.

Artificial intelligence is not only about tracking and analysing data. Moreover, these technologies can provide more predictive decisions through analysing historical data. It can be analysing previous routes, traffic data, and major notices. Furthermore, it can notify drivers about major stops for eating, refuelling and parking based on their route. However, not every route optimization plan is alike, it’s not necessary once the route plan has worked in past will work again in a different circumstance. Machine learning helps in finding patterns from historical data to find a progressive planning curve.

In March 2018, CEVA Logistics selected Paragon Software as its strategic partner for routing and scheduling works and would support in new business development in Europe, Australia, Asia and Latin America. Paragon will be responsible for analysing operations, evaluating scenarios and calculating transportation costs.

With the growing and expanding e-commerce industry, there has been need for innovation in supply chain management to improve and streamline logistic process by proper planning, opting from various resources available, and delivering more in less time. AI in Route optimization is expected to benefit business by helping them attain a significant ROI and increases profitability. The major companies offering AI based route optimization solutions are Omnitracs, Capterra, AltexSoft, ALK technologies (Trimble), Caliper, Paragon Software, Google and among others.