SCREL03-BP01 Integrate route optimization tools with real-time data from logistics providers and IoT sensors to dynamically adjust routes - Supply Chain Lens
Implementation guidance

SCREL03-BP01 Integrate route optimization tools with real-time data from logistics providers and IoT sensors to dynamically adjust routes

Implement advanced route optimization tools that continuously recalculate optimal delivery paths by incorporating real-time data streams from traffic systems, weather services, and vehicle telematics. Connect these optimization engines with IoT sensors deployed across the logistics network to capture immediate feedback on road conditions, vehicle performance, and cargo status, enabling dynamic rerouting decisions when disruptions occur. Establish bidirectional integration with logistics partners' systems to synchronize schedule changes, resource availability, and delivery constraints across the extended transportation network. This intelligent routing environment should support multi-objective optimization that balances competing priorities like fuel efficiency, delivery time windows, driver hours-of-service constraints, and carbon emissions targets while adapting to changing conditions throughout the execution cycle.

Desired outcome: A transportation network capable of rerouting shipments to minimize delays and allow on-time delivery.

Benefits of establishing this best practice: Reduces delivery lead times, avoids penalties for late deliveries, and improves overall supply chain efficiency.

Level of risk exposed if this best practice is not established: Medium

Implementation guidance

Dynamic route adjustment relies on integrating route optimization tools with real-time data. Services such as AWS IoT Core provides real-time location tracking, while Amazon Location Service can help optimize routes based on current conditions. Collaborate with logistics providers that offer dynamic routing capabilities to enable rerouting decisions that are efficiently executed.

Implementation steps

  1. Deploy real-time tracking: Use AWS IoT Core to track shipment locations.

  2. Integrate route optimization tools: Use Amazon Location Service for dynamic route planning.

  3. Collaborate with logistics providers: Partner with providers offering advanced routing capabilities.

  4. Monitor rerouting efficiency: Regularly evaluate and improve the effectiveness of routing adjustments.