Back to Work
A Regional Freight Company

Cutting fuel costs with machine learning

-18%Fuel Costs

The Challenge

This client operated a fleet of 280 trucks across the Midwest, but their routing was based on 15-year-old software that couldn't account for real-time traffic, weather, or dynamic customer windows. Fuel costs were 15-20% above industry average, and only 68% of deliveries hit their promised windows. The operations team was skeptical of any "AI" solution—they'd seen demos before that didn't work in practice.

Our Approach

We embedded with their dispatch team for 3 weeks before writing any code. The dispatchers knew things the data didn't capture: which customers were flexible, which drivers were good at which routes, union rules about breaks. We built a hybrid system where the ML optimizes routes but dispatchers can override any suggestion. The system learns from their overrides.

The Solution

The platform uses reinforcement learning to optimize routes across the fleet, considering real-time traffic, weather forecasts, vehicle capacity, driver hours, and delivery priorities. We integrated with their existing TMS via API, though this took 6 weeks longer than planned because their TMS documentation was wrong in several places. Dispatchers have full override capability, and the system tracks which overrides improved outcomes.

The Results

Fuel costs decreased 18% ($1.4M annually). We projected 23%, but achieving that would require changes to their customer commitment windows that the sales team wasn't willing to make. On-time delivery improved from 68% to 89%. The system handles 900+ daily route optimizations. Dispatcher adoption was slower than hoped—took about 4 months before most dispatchers trusted the recommendations.

-18%
Fuel Costs
89%
On-Time Delivery
$1.4M
Annual Savings

Inspired by what you see?

Let's discuss how we can help you achieve similar results.