Features

A new dawn for route optimisation

Adiona

Richard Savoie, CEO of Adiona Tech, says the company’s route optimisation platform solves many of the traditional problems in the field, opening up route efficiency for organisations small and large. 

Adiona Tech – named for the Roman goddess of the return journey – launched its platform last year with the goal of creating a new framework and set of machine learning algorithms to optimise last-mile delivery. In a short space of time, those unique algorithms have been put to work for some big-name clients, and the company recently picked up a top innovation award from the New South Wales state government. 

“We believe it to be one of the first truly scalable solutions in the space,” says founding CEO Richard Savoie. “It can scale from very small to very large organisations.”

Although the platform is young, it has had remarkable early success. Richard points to Adiona’s work with client Coca Cola Amatil for evidence of its power. 

“We were able to reduce their average delivery drive time – the on-road time of their vehicles – by 48 per cent and average delivery distance by 36 per cent,” Richard says. “Trust me, this surprised even us. But this is the power of our new algorithms versus legacy route optimisation algorithms – many of which were originally designed in the 1970s and ‘80s. It shows how much more juice companies can squeeze out with the right platform.”

Previously, Richard says, route optimisation technology has divided into two camps: one designed for small companies and one designed for large. The latter are very difficult to implement, he says, and also extremely costly. Adiona offers a pricing model that allows small companies to have the benefit of large companies’ route optimisation capabilities in an accessible platform and at an accessible price.

“Amazon has reinvented last mile delivery using machine learning and AI,” he says. “We have done the same – and are offering it to other companies to compete with them.” 

The problem with most route optimisation technologies, Richard says, is that they tend to be static. “People will create route plans that are very difficult to update in real time or using real traffic,” he says. “We think our algorithms are the fastest available. This allows our users to be very dynamic, for their routes to be updated on the fly using real time traffic.”

The other major problem is that route optimisation technology is often difficult to integrate with other systems like GRP, ERP, and transport management systems, Richard says. “So, we’ve created an application programming interface [API] that allows for very easy integration,” he says. “Some of our customers have been up and running within a day.”

Adiona works with many companies who provide excellent telematics technologies – vehicle trackers, for instance – that can deliver rich data sets on where assets are, have been, and are going to be. “But many organisations then hit a wall when it comes to the next step,” Richard says. “Adiona allows them to better utilise this existing data and unlock double-digit efficiency. It takes in data from any different tracking system and uses it to create that new efficiency.”

Although Adiona offers its platform internationally, it was originally designed in an Australian context, and so is attuned to Australia-specific concerns. One such concern Adiona had in mind was the discrepancy between the efficacy of route optimisation solutions in metro versus regional areas.

“We created an extremely specific set of algorithms that address Australian geography,” Richard says. “We have been able to develop a solution that is far more efficient for both regional and Australian city geographies. And that is very unique in the market.”

This is part of the reason that Adiona Tech was recently awarded a $250,000 New South Wales Innovation Districts Challenges grant, the program’s top prize. The grants are aimed at boosting products that address specific challenges of COVID-19. 

“Our platform connects asset owners, shippers, manufacturers – whoever is in our platforms’ ecosystem – to offer spare capacity and increase efficiency,” Richard says.

This means that both companies and society at large can benefit from maximising vehicle utilisation. 

“The typical vehicle utilisation rate is under 50 per cent – that’s more than half the time sitting idle – and that has been a huge problem. Such information on vehicle utilisation has traditionally been siloed,” he says. “Our platform allows shippers, asset owners, and 3PLs to automatically get jobs matched up for the best margins and the best rates.”

This delivers benefits to 3PLs, because they’ll get more business, as well as to those distributors – many of them medical supplies companies – that outsource their deliveries, Richard says. “Instead of consigning individual orders to 3PLs, distributors can consign full vehicle loads, because they’ve pre-optimised those full vehicle loads with Adiona,” he says. “This allows them a new level of negotiation with 3PLs that massively brings down the overall cost of outsourcing their delivery.”

For more information on Adiona Tech, click here

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