Cut your fleet’s fuel bills with AI route optimization

Fuel is one of a fleet’s largest operating costs. And in the highly competitive logistics and transportation sectors, where profit margins are often slim, these costs can significantly impact your business’s bottom line. Fuel prices also fluctuate regularly, making it even more challenging to keep on top of costs.

According to a survey by tire maker Bridgestone, 69% of fleet managers said fuel was their most significant expense. Furthermore, 68% of them said they are actively seeking strategic ways to control their fuel spend.

That’s where artificial intelligence (AI) comes in. AI-powered route optimization is revolutionizing fleet management – and could slash fleet fuel bills by as much as 20%, according to some reports.

Fueling profitability

Traditional route planning often fails to account for real-time conditions that impact fuel consumption. For example, variable traffic patterns, weather conditions and construction zones that can create unexpected detours, affect delivery windows and cause vehicles to burn more fuel.

Combining location technology, machine learning, predictive analysis and historical and live data, AI-powered route optimization can make intelligent routing decisions that minimize fuel consumption as well as improve delivery times. These planning systems can dynamically adjust routes based on real-time conditions, helping to make fleets more efficient.

In one Australian study published in Science Direct two council trucks switched to optimized route planning. The first, which follows a predictable daily route, reduced fuel consumption by 62% in a month by using route optimization. The second, which follows unpredictable routes, showed an 11% reduction in fuel consumption.

“AI-powered route optimization is emerging as a game-changer” wrote Joel Paul, a senior researcher at Stanford University. “The integration of AI with GPS tracking, Internet of Things (IoT) sensors and cloud-based fleet management platforms has revolutionized logistics operations by enhancing vehicle utilization, minimizing fuel consumption, and improving last-mile delivery efficiency.”

For example, by analyzing real-time traffic patterns, weather, road conditions and delivery times, AI can plan the most efficient routes in real-time, rerouting drivers away from delays to minimize idling time and save fuel.

AI can also help fleets plan more proactively by using machine learning to analyze historical delivery patterns, seasonal trends and customer behaviors to predict demand and plan the most efficient routes. HERE’s Matrix Routing API can plans routes based on historical traffic patterns, for instance.

For mixed fleets – which comprise internal combustion engine vehicles as well as electric – AI can help fleet managers plan the most efficient route to suit that powertrain. Steep inclines and cold temperatures reduce EV range more than they impact ICE efficiency, for example. For winter operations, AI route optimization could help manage energy reserves by planning more sympathetic routes that take these factors into account and help reduce energy costs.

“Additionally, delivery sequencing plays a critical role for EVs,” said Petros Kaplanidis, Product Manager at HERE. “A fully loaded EV consumes more energy than an empty one, so optimizing delivery orders to reduce weight earlier in the route can extend range.”

Yes, coach!

Driver behavior can also have a significant impact on fuel costs. AI can monitor and analyze driving patterns, such as acceleration, braking and idle times, and coach drivers to drive more efficiently, or plan routes that suit their driving style.

“One European trucking company has reduced fuel costs by 15% by using sensors that monitor both vehicle performance and driver behavior; drivers receive real-time coaching, including when to speed up or slow down, optimizing fuel consumption and reducing maintenance costs,” said McKinsey in a report about AI optimization.

But AI-powered route optimization relies on powerful location data that goes beyond navigation. HERE’s Fleet Optimization software package is designed to enhance the efficiency and scalability of fleet management operations by using AI to solve complex routing challenges.

It incorporates variables such as vehicle profiles, driver availability and delivery schedules to provide instantly optimized routes and more precise estimated times of arrival. HERE Fleet Optimization also integrates advanced tour planning that considers real-time traffic and vehicle restrictions, specialized routing for different vehicle types, precise address validation through geocoding, and detailed commercial vehicle mapping that includes critical data like bridge heights and road restrictions.

According to HERE, its Fleet Optimization software can potentially reduce fleet management costs by up to 20%, as well as reduce rerouting times by 90%.

"The Fleet Optimization package is designed to streamline and enhance fleet management processes, helping customers manage their fleets more efficiently and at a reduced cost," said Remco Timmer, Vice President of Product and Portfolio Management at HERE Technologies. "We are committed to opening up access and providing every mid-sized business focused on moving goods and services with solutions that have traditionally been deployed by only the biggest companies."