Carbon and cost reduction for hub-and-spoke logistics

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Lorry transportation accounts for 19% of vehicle carbon emissions in the UK but 30% of those lorries are empty, with most of the remainder not running at capacity. Reducing haulage of empty space or "air" would have a direct and substantial impact on carbon emissions as well as bringing down costs.This proposal optimises the load factor (percentage of capacity used) for hub-and-spoke logistics and, specifically, for the partner organisation, Pallet-Track. Hub-and-spoke networks enable hauliers or "depots" to deliver goods from customers in their own areas to recipients who may be located at the other end of the country or even abroad. Depot A takes pallets to the nearest warehouse or "hub", where they are picked up by depots coming from the target delivery area. At the same time, Depot A will pick up goods destined for its own area that have been dropped off by depots from elsewhere.This transport model reduces distances depots travel and extends their delivery range. However, it creates a different problem: they do not know how much freight they will need to collect when they reach the hub. If the delivery and collection numbers do not match, they will transport empty space or they will not have enough lorries, which is compounded by incorrectly estimated pallet numbers at the hub.The proposal uses machine learning to predict the number of pallets depots need to process and the network hub's role in managing the flows between members. Artificial intelligence will interpret these numbers within a cognitive model of decision making that helps depots collaborate with each other to share resources.The numbers of pallets delivered and collected by depots will be analysed to produce accurate predictions for each depot, every day of the year. The cognitive model will interpret these predictions and translate them into transport decisions that optimise the load factors. It will work out which combination of lorries of different sizes are best able to deliver and collect their own pallets. At the same time, it will flag up to neighbouring depots any spare capacity that could be used by them or requests to use spare capacity the neighbours may have.This innovative technology will optimise lorry loading, reduce carbon emissions, and cut costs, making Pallet Track a more attractive hub-and-spoke network. It will also save space at the hubs, which will increase capacity and the throughput of pallets, reducing delivery times.