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LogisticAI: Artificial Intelligence for Sustainable and Predictive Logistics Optimization

AI Decision Engine for Logistics Planning, Cost Optimization and ESG Reporting
Funding: IFAB call for members
Enabling technology: Artificial Intelligence, Machine Learning

Status: In corso

Sustainable Development Goals

How many vehicles are really needed? What is the optimal route when delivery time windows, load capacity and environmental impact all need to be considered? What would happen if a new depot were added, or if the fleet configuration changed? These are the kinds of questions that global logistics operators have been addressing for years through sophisticated, internally developed systems. For most medium-sized companies, however, they remain difficult to answer. LogisticAI bridges this gap. It is a modular simulation and optimization engine that integrates real operational data — extracted from TMS, WMS and ERP systems — to support logistics planning with practical, data-driven decision-making tools.

At the core of the system is a solver based on the mathematical formulation of the Vehicle Routing Problem with Time Windows (VRPTW), the same class of technology used by major logistics and retail players such as FedEx and Walmart, implemented using Google OR-Tools. The engine enables users to simulate alternative scenarios, identify optimal values for key parameters and objectively quantify costs, service levels and emissions. Results are integrated directly into the Power BI dashboards already in use, without adding complexity to existing tools.

Objectives

The project objectives cover the full cycle: development, field validation and replicability.

  • Develop a pre-industrial AI/ML engine for logistics decision support, based on a modular architecture.
  • Integrate the engine with the Power BI platform for results visualization.
  • Validate a TRL 6 Proof of Concept on a real operational use case.
  • Integrate an ESG module to quantify and simulate environmental impact.
  • Build a replicable methodology for other medium-sized logistics operators.
  • Transfer technical expertise to the client through workshops and training materials.

Initial Challenge

While large global logistics operators have developed sophisticated planning tools in-house, medium-sized companies are still largely excluded from access to such capabilities. As a result, operational decisions — how many vehicles to deploy, which routes to select, how to organize the fleet — are often based on experience alone, without the possibility of testing alternatives before implementing them.

The data needed to support these decisions already exists. The challenge is that it is typically fragmented across TMS, WMS and ERP systems that do not communicate with one another. This makes it difficult both to analyze current performance and to meet the ESG/CSRD reporting requirements increasingly required by regulation.

Solution

LogisticAI provides a modular decision engine that integrates real operational data and AI/ML techniques to support logistics planning. At the core of the system is an optimization solver based on the VRPTW formulation, implemented using Google OR-Tools.

The engine offers two analysis modes:

  • What-If Simulation: modification of key parameters and recalculation of the optimal plan against the baseline.
  • Find Optimal Value: identification of the optimal value through parametric sweep analysis.

A dedicated ESG module quantifies the emissions associated with each scenario according to the GLEC and CSRD frameworks. The results feed into a Power BI dashboard for the visualization of KPIs, maps and scenario-vs-baseline comparisons.

Benefits

The project generates measurable benefits across three areas: operational efficiency, sustainability and decision governance.

  • Measurable reduction in kilometres travelled, operating costs and CO₂ emissions while maintaining the same service level.
  • Greater decision transparency: each scenario is quantified, comparable and auditable.
  • Built-in ESG/CSRD compliance through a dedicated module aligned with the GLEC framework.
  • Reduced dependence on individual expertise for critical operational decisions.
  • Integration with the existing visualization stack, Power BI, with no additional learning curve.
  • Replicability: the methodology can be applied to other medium-sized logistics operators within the cooperative ecosystem.

For further information, please contact: projects@ifabfoundation.org.

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