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Logistics Optimization System
Client: TEFTO Broker
Backend
Expertise:
Tech Stack:
Java
Lisp
Prolog
Year of project implementation: 2024
TEFTO Broker is a major freight operator from the USA, managing large-scale logistics across various regions. They were looking for a solution to streamline their logistics operations, minimize costs, and improve profitability through optimized driver and route management.
About the Client:
The project involved developing an AI-driven logistics optimization system. The system would automate the process of matching available truck drivers with freight loads, negotiating optimal rates, and ensuring timely delivery. By leveraging AI, the system would provide real-time engagement with multiple drivers simultaneously, securing the best possible rates and improving the efficiency of logistics operations. A team of 4 IT specialists was involved in the implementation of the project.
Project Overview:
The main objectives were:
  • Driver matching and negotiation: Develop an AI system that can automatically match freight loads with available drivers and negotiate rates, finding the most cost-effective options for the client.
  • Real-time communication: The system needed to communicate with 10-50 drivers simultaneously, enabling fast and efficient negotiation processes.
  • Timely deliveries: The platform had to ensure that all logistics operations were carried out on time, contributing to overall operational efficiency.
  • Cost optimization: The goal was to save on logistics costs by using AI to secure the best rates for each delivery, leading to increased profitability.
Challenges & Objectives
01
Java for backend development
The core of the system was built in Java to ensure robustness, scalability, and reliable performance under heavy loads.
02
AI and optimization logic in Lisp and Prolog
These languages were used to develop the AI components responsible for real-time negotiation, decision-making, and route optimization. Lisp handled complex AI algorithms, while Prolog was used for logic programming and constraint satisfaction problems.
03
Real-time communication
The system could initiate real-time conversations with 10-50 truck drivers at once, simulating human-like negotiation. It leveraged data on previous routes, driver preferences, and market trends to offer competitive rates.
04
Integration with logistics platforms
The platform was integrated with the client’s existing logistics infrastructure, enabling seamless updates on delivery statuses, routes, and real-time adjustments based on changing conditions.
Implementation:
The solution was implemented using the following technologies and approaches:
The release of the product took 1 month.
  • Automated real-time negotiations: The AI system could engage in real-time negotiations with drivers, automatically finding the most cost-effective and timely delivery options.
  • Significant cost savings: By negotiating better rates with drivers and optimizing routes, the system helped reduce logistics costs, leading to increased profitability for the client.
  • Increased efficiency: The platform allowed the client to manage logistics operations more efficiently, ensuring timely deliveries and minimizing downtime.
  • Scalability: The AI-driven system could handle multiple negotiations simultaneously, enabling the client to manage a large fleet of drivers without manual intervention.
This project transformed the client’s logistics operations, automating processes, reducing costs, and ensuring more effective route and driver management. The AI-driven system enabled the client to compete more effectively in a demanding logistics market by improving profitability and operational efficiency.

Outcomes & Business Impact

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