Freight cost reductions of up to 14% by analyzing demand patterns and recommending new distribution centers
A leading regional airline wanted to boost revenue and reduce costs rapidly, especially in air cargo. The customer sought to optimize the weight and chargeable weight of the cargo to facilitate efficient and cost-effective loading onto the aircraft. The client also wanted to optimize routes and cargo to maximize revenue and implement demand forecasting to predict upcoming cargo accurately. Air cargo's intricate, constantly evolving nature made it unfeasible to achieve the above objectives through manual or rules-based methods.
The AirlineAi suite of machine learning-powered solutions for palette optimization incorporates a wide range of inputs, from airplane types, palettes, routes, demand, pricing, seasonality, airport, and the client, to name a few. A dynamic programming algorithm is implemented to optimize cargo, routes, and demand in real time, considering air cargo's complex and dynamic nature. AirlineAi optimizes for higher revenue and lower cost, utilizing a range of adjustable parameters to deliver the most efficient and cost-effective air cargo business outcome.