The Algorithm People Ltd

The Algorithm People (TAP) and Teesside University joined forces to bring a revolutionary level of optimisation to road transport.

This innovative solution for dynamic vehicle-to-vehicle optimisation could transform deliveries and eliminate routine back-to-base reloading by enabling other transport players in the supply chain.

This will extend TAP’s award-winning optimisation platform, My Transport Planner (MTP), which combines algorithms and machine learning to continuously improve journey efficiency and load allocation.

Challenge

TAP wanted to provide an optimisation platform for the transport and logistics sector that other organisations can use to holistically optimise their fleet. The project is an advanced extension to current vehicle routing algorithms, allowing TAP to access another part of the value chain, and further penetrate the marketplace.

This value chain now has additional actors from a simple customer-supplier model:
• consumer/customer
• retailer/vendor
• fulfilment/delivery company
• own fleet delivery driver
• subcontractor/self-employed driver.

This vital next step was not possible with the current algorithms. They did not deliver the type of optimisation required to incorporate these additional players and the use of transient mobile storage hubs (a predetermined location where a shipment can be dropped off and picked up by another vehicle). These new hubs complement the functionality and potential of electric and autonomous vehicles.

Solution

Successful delivery relied on the expertise of three separate branches of machine intelligence in combination. This was a considerable iterative development to enable the optimisation simulation and deployment of a solution. A multi-disciplinary academic team was needed to embed the knowledge so TAP understood how each of these machine intelligence branches interacted in the finished system. Therefore, a Knowledge Transfer Partnership (KTP) was proposed to deliver the project.

The new system uses AI technology, allowing customers to make a booking with a retailer, who passes the job to the delivery company. The new algorithms optimise the delivery and decide if it is best for their own vehicles to do the final mile, or subcontract out using mobile and transient hubs. When this decision is taken in real-time, there is a feedback loop to the algorithm, influencing the next decisions. The technology considers the technical complexities of managing a network of transient mobile hubs against an electrified charging infrastructure.

Impact

TAP’s core algorithm within their platform has been improved through the development of their new vehicle routing optimisation algorithm and API – now branded as Optimize.

TAP has emerged as a Fleet as a Service (FaaS) operator. They simplify fleet management by having no software to deploy, while offering flexible payment options, and delivering immediate cost/carbon reductions (now up to 30% reduction in mileage, cost and emissions – original benchmark of 20%). Conservative estimates for the increase in net profit within three years is £1m.

*Innovate UK Knowledge Transfer Partnerships (KTPs) aim to help business improve their competitiveness and productivity through the better use of knowledge, technology and skills within the UK knowledge base. This KTP project was co-funded by UKRI through Innovate UK.

Email ktp@tees.ac.uk for further information.