Route and Travel Time Optimization for Delivery and Utility Services: An Industrial Viewpoint

Abstract

There is a need to innovate current solutions in the field of fleet management and control systems in connection with the continuous growth of retail sales via the Internet and the associated delivery services. This is also supported by the development of the Logistics 4.0 concept, which refers to the massive digital transformation and deployment of cyber-physical systems based on artificial intelligence. For example, thanks to this delivery companies can reduce their operating costs, maintain competitiveness and margin size. The aim of this article is to present the basic principles on which the newly designed functionality of route and travel times optimization is based. This functionality is intended as part of intelligent transportation systems supporting delivery and utility services. The contribution of this article refers mainly to the field of practice. The article provides professionals with insight into the stated issue. Exemplary calculations of financial savings achievable by implementing such a solution in practice are also given.

Keywords

• delivery
• pickup
• dynamic vehicle routing
• fleet management and control system
• workflow management system
• traveling salesman problem