The UK’s haulage industry has a significant problem with inefficiency and accordingly, its ecological footprint too. Though the sector plays a huge role within the UK’s economic landscape, there is a high prevalence of empty runs – trips made by Heavy Goods Vehicles (HGVs) in the absence of any cargo. These runs account for more than 30% of all HGV miles in the UK, inviting hefty operational costs along with producing over five million tonnes of needless CO2 emissions per year. Sadly, the already tight profit margins, cost of fuel, and rise in interest rates are only exacerbated by such inefficiency and haulage businesses are closing at a worrying rate.
A proposed solution to addressing such issues can be found in AI models. HaulageHub, a UK-based digital freight marketplace, has been leveraging innovative AI technology to transform how shippers and hauliers connect, optimising efficiency while reducing the sector’s carbon footprint. This leads to greater profit for businesses and a more favourable lasting impact upon the environment, demonstrating that improving sustainability within the logistics sectors does not mean compromising business profits. To improve sustainability within the haulage sector, retailers should engage in a multifaceted approach by employing new and advanced technology to assist their efforts.
Reducing empty running
Technology now enables loads to be matched to hauliers, minimising empty runs and ensuring best profit. Tackling the stark issue that one in three HGV vehicles run empty will be instrumental in improving sustainability within logistics. HaulageHub has been utilising an advanced AI model and machine learning to do this, by match loading opportunities with their haulier base of 1500+ firms, reducing empty runs and ensuring best profit. The technology ensures that loads are allocated to those with historically empty routes, thereby drastically cutting emissions. By continuously analysing data in real time, such technology can match hauliers with available loads within the vicinity, accordingly reducing unnecessary mileage, saving fuel and reducing costs. HaulageHub has successfully reduced its empty running rate to just 20%, well below the industry average of over 30%.
Load consolidation
Consolidating loads is a further way to improve sustainability within the sector. By group parting loads together, retailers can maximise truck capacity and efficiency. AI platforms can reduce unnecessary mileage and associated fuel costs, along with decreasing emissions. This makes sense from both a financial and environmental sustainability perspective.
Route optimisation
To optimise route choice, advanced algorithms can select routes dependent on current traffic conditions and other dynamic factors. The subsequent reduction in travel time further lowers fuel consumption and carbon emissions, again benefiting profit margins while also increasing sustainability. These advanced algorithms ensure hauliers are travelling optimal routes, thereby saving retailers money and ensuring an eco-friendlier drive.
IoT sensors and predictive analytics
By using IoT sensors and predictive analytics to monitor vehicle conditions, retailers can prevent potential breakdowns and ensure trucks operate at peak efficiency. This minimises downtime and maintains optimal performance. HaulageHub has successfully implemented this system into their model, providing customers with greater confidence in the reliability of their vehicles and reducing concerns about potential breakdowns.
Carbon footprint analysis
Retailers should also consider using carbon footprint analysis as this can provide valuable data-driven insights, which can enable hauliers to track and measure their emissions in real time. This insight can empower companies to make informed decisions and enable them to continuously improve their sustainability efforts. HaulageHub offers a unique carbon footprint analysis to their customers which helps companies make effective changes to improve their sustainability record and profits. One major e-commerce company reduced its emissions by 19% and significantly lowered fuel costs after re-evaluating its delivery routes based on a footprint analysis.
Control tower solutions
By implementing a control tower solution, retailers can benefit from the flexibility of multiple hauliers who specialise within their own particular geographies, in turn reducing waste and saving money. By providing customers with a single source solution, HaulageHub allows small hauliers to work directly with large brand customers at a full rate, versus historically being subcontracted via premium logistics firms.
Customer success and satisfaction
These initiatives can help businesses flourish from both a profit and sustainability perspective. One of HaulageHub’s major clients, a leading retail chain, successfully reduced its logistics-related carbon emissions by 21% in the first year of their partnership. A further success story is that of a mid-sized manufacturing company that, through the businesses’ load consolidation and route opitmisation services, not only cut their emissions by 15% but also saw a significant reduction in logistics costs.
Looking to the future
Going forward, HaulageHub intends to continue to revolutionise the logistics tech sector by investing in advanced technologies such as artificial intelligence and machine learning. They plan to expand their product offering to include solutions in telematics and tachograph management. The business is also exploring the integration of electric and hydrogen-powered vehicles into their haulier network, to expedite the transition to zero-emissions vehicles and reduce the carbon footprint of the entire logistics sector.
Adopting AI and machine learning innovations is key for retail companies to stay ahead in the digital age, while also boosting sustainability and efficiency. The benefits of sustainable logistics are clear, making it essential for retailers to continue to embrace these advanced technologies.
