GXO introduces AI solutions across Iceland’s supply chain

A partnership between pure-play contract logistics provider GXO and Datasparq, which specialises in artificial intelligence (AI), has seen the implementation of AI technology within Iceland’s supply chain to deliver environmental and efficiency gains.

This use of AI has reportedly led to a reduction in the distance travelled from one depot by over 900,000km (approximately 559,000 miles). This, GXO says, equates to an annual decrease in diesel consumption of 25,000 litres. It adds that through this, 720 tonnes of carbon emissions have been saved to date.

In addition to the environmental gains, GXO has claimed that AI solutions have helped boost efficiency and generate cost savings.

GXO operates four distribution centres in the UK on behalf of Iceland, all of which are set to implement Datasparq’s AI solutions. These depots service more than 1,100 Iceland stores nationwide.

Steve Pennington, supply chain director, Iceland, said: “Iceland was the first food retailer internationally to join the Climate Pledge, a commitment to be net-zero carbon by 2040.

“Minimising road miles and reducing fuel consumption across our fleet, without sacrificing outstanding customer service, is a top priority for us as we work towards this goal. With the power of new technologies such as AI, and strong partnerships with GXO and Datasparq, we are one step closer to a more sustainable future.”

GXO plans to make use of AI both across its transport network, as well as in its warehousing and distribution network. The company is working with a number of suppliers to deploy AI in its warehouse operations to “improve automation efficiency, picking accuracy, and processing time while supporting the safety and wellbeing of its colleagues”.

One solution it is looking to implement is Körber’s Operator Eye. This solution was designed to use cameras and AI to automatically track error patterns to minimise downtime and human intervention.