Using Geospatial to Innovate in Last-Mile Logistics

Using Geospatial to Innovate in
Last-Mile Logistics
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CARTO — Unlock the power of spatial analysis
Introductions
Alejandra Aranzadi
Data Partnerships Manager at
CARTO
Gigi Etienne
Partnerships Manager at
what3words

What’s happening in last-mile?
Urbanization
60%
people living in cities in
2030
20-35%
congestion increase since
2010
Customers
2.1bn
people expected to buy
goods online by 2021
20%
online retail share by 2023
Products
10%
p.a. e-grocery growth
worldwide
32%
furniture sold online by
2023 in the US
Delivery
20-40%
growth in same day
10%
p.a. growth in instant
deliver
78% growth through 2030 in urban last-mile deliveries
Source: McKinsey

POLL 1
Yes! I know my what3words address or have the what3words
app on my phone
I have heard of it
Nope!
Do you know what what3words is already?

Similar addresses lead to mistakes

Addresses
aren’t unique

Pins don’t
take you to
the entrance

Addresses in foreign languages
make navigating the world a huge
challenge

Many 240 California
Street in California
Voice input doesn’t
always work
240 California Street
Google Maps by voice

Inaccurate addresses impact your business

GPS coordinates are NOT human
friendly
25º 9’ 40.918’’ S 18º59’ 2.824’’ E

What3words is the easiest way to
talk about location

Using what3words for deliveries
What3words technology can be used from checkout page to the consumer’s front door
A 3 word address refers to a
speciﬁc 3cm x 3cm square in the
world.
What3words technology converts
any 3 word address to a set of
GPS coordinates.
These coordinates can be used in
any mapping, routing or delivery
application.

3 word addresses add value at every
stage
From the customer placing their order, through to the item arriving at their door, 3 word addresses
provide a simpler and more eﬃcient way to pass location data.

E-commerce use case
Wadi, the leading online grocery delivery service in the Kingdom of Saudi Arabia,
has integrated what3words into its delivery process. People can now add a 3 word
address to the delivery information on their user proﬁles and receive their
groceries at that precise location.

E-commerce use case
iStore, the sole distributor of Apple products in South Africa, is now oﬀering
delivery to 3 word addresses. On mystore.co.za, customers can now enter the
precise 3 word address for their delivery entrance at checkout, whether it’s a front
door, side entrance, or any other secure delivery location.

Results

POLL 2
New technologies for delivery (like drones)
Optimize routing model/algorithm and reduce delivery time
using advanced analytics
New pick-up formats (e.g. lockers)
What are the innovation priorities in H2 2020 for your logistics ﬁrm?
Other…

On-demand Last-mile
● Allow to order pickup and delivery
services of basically anything
a. Ride Hailing, Food, Small
parcels, Errands
● Delivered in less than one or two
hours, (almost) real-time
● Less information, less time
Traditional Last-mile
● Accept next-day delivery orders
until a certain cut-oﬀ time
● Vehicle Routing Problem (VRP)
● Information about orders and
driver availability is known
beforehand

On-demand Last-mile

How can Spatial Data
Science help?

Data Streams for Route Optimization
● Real time traffic: highly granular speed and
bottleneck traffic information for nearly every stretch
of road.
● Traffic stats: average speed, travel times, number of
probes, etc. per street segment during a period of
time to be configured. Max area 20k sqkm
● Traffic density and Speed Profiles: typical number
of TomTom's devices and average speeds per street
segment per week, day and hour built from TomTom
historical data. Available for entire countries.
● Origin/destination matrices: Number of flows
during a configurable period of time between a set of
origins and destinations
Road Traffic Data

● Climatology: global climatology data providing
weather statistics such as weather means, standard
deviations and frequency of occurrence values for any
location and any date and/or hour during a calendar
year.
● Past weather: past weather data from the year 2000
to present.
● Forecast weather: 10 and 15-day weather forecasts.
● Real time weather API.
Weather Data

● Climate and weather risks: general climate statistics
and normalized risks: temperature, precipitation,
degree days, air quality, weather risk, hurricane risk,
tornado risk, damaging wing risk and hail risk.
Weather Data

Use cases

DPD
DPD Ireland uses CARTO to optimize their
operations by:
● Improving their location data quality
with an Address Match Exception App
● Spatially optimizing parcel routing for
each depot with an algorithm that takes
into account:
○ Vehicle Size
○ Drop oﬀ type (B2C vs B2B)
○ Driver shifts
○ Driver experience
○ Speed limits

Instacart
Instacart uses CARTO to build balanced delivery
zones while maintaining high services levels.
Using the locations of the retailers they deliver
from, a city’s zip codes, and a list of service level
criteria, a graph algorithm is applied whose targets
are:
● To balance delivery zones making compact
and similar size areas by minimizing the
maximum crossing distance of each delivery
zone.
● To maximize service level by trying to satisfy
as many service level criteria as possible.

DHL
DHL’s container sales team use CARTO for
Territory Management, allowing them to:
● Visit more customers per day
● Understand which accounts are most
strategic to nurture and visit
● Spatially analyze data from their CRM
system (SAP)

Sorigué
Sorigué use CARTO to optimally plan and
manage the routes for the collection and
disposal of urban waste.
Using the locations of the collection points and the
disposal plants, they calculated optimal routes to
minimize ﬂeet and the costs associated with
running this service by:
● Designing balanced collection areas using a
balanced k-means clustering algorithm.
● Applying a multi-objective metaheuristic
algorithm to design the stop-by-stop routes.

12%
increase in
network
coverage
7%
reduction in
ﬂeet fuel
cost
11%
reduction in
late
deliveries
8% less
failed
deliveries
Some metrics we helped improve

Demo

w3w + CARTO

Thanks for listening!
Any questions?
Request a demo at CARTO.COM
Gigi Etienne
Partnerships Manager at what3words // gigi@what3words.com
Alejandra Aranzadi
Data Partnerships Manager at CARTO // aaranzadi@carto.com

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