Contract logistics provider GXO Logistics has used the power of arificial intelligence (AI) to help food retailer Iceland slash one of its depot's delivery emissions by 720 tonnes.

GXO operates four distribution centres across three temperature ranges, servicing over 1,100 stores nationwide on behalf of Iceland.

Since 2021, GXO has been working in partnership with Datasparq, an end-to-end AI and data science services provider. The partnership has used Datasparq,'s technology to develop bespoke route optimisation tools for Iceland's complex network which covers over 50 million kilometers per year.

By using AI generated route optimisation, GXO has helped Iceland reduce the distance driven from one depot by over 900,000 kilometers per year, decreasing diesel consumption by over 25,000 liters and delivering over 720 tonnes of overall carbon emission savings to date.

Gavin Williams, GXO managing director, U.K. & Ireland, said its use of innovative technology is helping it win new customers.

He added: "We continue to invest in unparalleled technology solutions to better serve our customers, helping them boost efficiency and productivity as well as achieve their ESG goals.

"With our continued deployment of artificial intelligence, we now have even more opportunities to add value for our customers by enhancing all aspects of their logistics needs — from sorting to picking, packing and transportation.”

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

"Minimizing 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 is also using AI to transform its warehousing operations, working with a number of suppliers to improve automation efficiency, picking accuracy and processing time.

Currently GXO generates around 30% of its revenue from automated solutions, versus the industry average of 8%.

In the first quarter of 2023, GXO set a new record for operational tech deployment, increasing total tech and automated solutions by 64% year over year.

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