AI 'speed dating' for trucks to cut food charity costs
New platform aims to save Felix £1m annually by optimising HGV journeys and reducing road miles.
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The food distribution charity Felix spent £5.6 million last year collecting surplus produce and delivering it to community organisations. These transportation costs, which accounted for three-quarters of the £5.6 million expenditure on 80,000 pallets, are essential for ensuring food reaches those in need. However, a new artificial intelligence platform, referred to as 'speed dating for trucks', has been launched with the aim of reducing these operational expenses.
The platform connects logistics providers, retailers, and manufacturers by matching available haulage capacity with the charity's need for surplus food collections. This initiative stems from the observation that approximately 30% of all heavy goods vehicle journeys have unused space. The administration of these deliveries has historically fallen to Felix's logistics team, who book and pay for hauliers.
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Early savings and future projections
Early trials of the software have already demonstrated financial benefits. One specific route involving twice-weekly milk deliveries to the Felix depot in Poplar, east London, is projected to save the charity £20,000 annually. This particular service is currently provided free of charge by the food producer Greencore, which is absorbing the costs to utilise its spare capacity for moving surplus food.
Further potential savings have been identified by Sainsbury's and logistics provider GXO, who have mapped out an additional 10 routes expected to save around £170,000 per year. Several other major companies, including Tesco, M&S, and supply chain firm Gist, are providing free consultancy and logistics support to the project.
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The launch of this platform comes at a time when food insecurity in London has increased by 23% over the last two years, as reported by the Trust for London. Alongside this growing demand, transportation costs have risen, and there are increasing pressures to reduce carbon emissions. Alliance Food Sourcing (AFS), a coalition of food companies, stated that if the platform is widely adopted, it could save Felix £1 million annually and decrease the number of road miles travelled.
AFS has urged more businesses within the food industry to support the project, suggesting it could transform inter-sectoral collaboration.
Questions this report answers
+How much did Felix spend on collecting produce last year?
The food charity Felix spent £5.6 million last year on collecting surplus produce and delivering it to community organisations. This expenditure covered 80,000 pallets, with three-quarters of the cost coming from third-party logistics companies.
+What is the 'speed dating for trucks' platform?
It is a new AI-powered platform designed to reduce logistics costs for food charities like Felix. It matches spare capacity in heavy goods vehicle journeys with the charity's needs for collecting surplus food.
+What are the projected savings from this new platform?
Early trials suggest significant savings. One route is projected to save £20,000 a year. If the platform is upscaled, Alliance Food Sourcing estimates potential annual savings of £1 million for Felix and a reduction in road miles.
+Why is this initiative important for London?
Food insecurity in London has risen by 23% in the past two years. The platform aims to make food distribution more efficient and cost-effective, helping charities like Felix to better meet the increasing demand for their services.
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