30% reduction in Alibaba travel distances with AI route optimization
The Business problem: improve efficiency in delivery
“The nature of smart logistics is the flow of data” - Jack Ma, founder of Alibaba. But how to guarantee that when you are handling 1 Billion parcels per day (at the moment volume is 1B/week) ? How to reduce deliver time and delivery costs at that scale? How to optimally route the 1M smart vehicles that Alibaba is putting into the jammed Chinese roads?
The A.I. solution: smart planning with route optimisation
With a clever combination of GPS data collection and real-time mathematical modelling, Alibaba was able to design optimal routing algorithms. They are able to replan and reroute in real-time depending on traffic conditions and last minute order.
Our Verdict: 👍 Amazing
With a projected US$1.4 Billion in saving annually thanks to this smart logistics project, Alibaba ticks all the boxes.