XPO, Google Cloud Team For AI Driven Supply Chains

June 17, 2022

XPO Logistics and Google Cloud started a multi-year collaboration to further innovate how goods move through supply chains. Leveraging Google Cloud's expertise in artificial intelligence (AI), machine learning (ML), and data analytics, XPO is building faster, more efficient supply chains with greater visibility.

XPO customers across the supply chain, from manufacturers to consumer packaged goods companies to retailers, are facing an increasingly unpredictable marketplace filled with constraints, volatility, and rising demand. To help its customers address these challenges, XPO migrated several key applications to Google Cloud, enabling the transportation services provider to take advantage of the scalability and availability of cloud computing. For XPO and its customers, scalability is key for dealing with peak periods of seasonality, while high application availability is critical, as services need to run smoothly around the clock.

Google Cloud's data analytics, AI, and ML tools help XPO quickly provide insights to its operators–such as product managers, demand planners, route planners, and data analysts. Democratizing AI and analytics by placing them in the hands of those with greatest domain expertise enables faster decision-making and business agility. For instance, AI and ML tools like Vertex AI help XPO engineers experiment with algorithms in real-time, building a pipeline for data scientists to experiment, while improving and evaluating new algorithms for XPO Connect's proprietary load-matching and pricing technologies.

Additionally, tools like BigQuery, VertexAI, and Looker are helping XPO optimize network planning by providing real-time updates on shipment statuses, allowing operators to take action and avoid potential shipping delays.

"XPO is always looking for ways to innovate the ways goods move across the globe. Implementing the most cutting-edge technology is the best way for us to ensure that we achieve this goal," said Yoav Amiel, senior vice president of technology, XPO. "By working with Google Cloud's AI/ML and data analytics capabilities, we can operate the fastest, most efficient supply chains possible."

As part of the partnership, XPO is also achieving its sustainability goals by transporting goods in the most efficient way possible. With Google Cloud, XPO ensures for every application moved from a self-managed data center or collocation facility to the public cloud, the net operational emissions from running that application will be zero. As the cleanest cloud in the industry, Google Cloud matches 100 percent of electricity that powers cloud workloads with renewable energy. This allows products like XPO Connect to improve the carbon footprint of XPO's truck brokerage customers by optimizing lane assignments and reducing empty miles. Meanwhile, XPO maintains a modern less-than-truckload (LTL) fleet, optimizes routes, and trains drivers in eco-friendly techniques.

"We're bringing our innovative AI/ML and data analytics solutions to XPO, to help it transform supply chain management, ensure its deliveries are on-time, and give its customers accurate, up-to-date view on the location of their freight," said Hans Thalbauer, managing director, Global Supply Chain, Logistics & Transportation, Google Cloud. "As external factors continue to impact supply chains and create new challenges, we're dedicated to collaborating with XPO to help the company continually improve and run operations as efficiently and sustainably as possible."