INTERVIEW
How location intelligence is changing the ways we deliver
Bart Coppelmans, Sr. Director Product Management, HERE Technologies
With the rise of AI and predictive analytics, how can delivery companies leverage location intelligence?
One of the biggest challenges for delivery companies is inefficiency caused by static maps and rigid routing systems. Companies need a routing algorithm that can absorb multiple different customer constraints and complexity, based on real-world conditions, rather than being limited by third-party systems. Without this adaptability, they struggle with inaccurate geocodes, suboptimal routes and avoidable delays.
AI and predictive analytics can help with this in four key ways:
- Optimized routing. AI-driven systems can integrate real-time traffic conditions, road closures and historical delivery performance to dynamically adjust routes. This reduces delays and lowers fuel costs.
- Continuous learning from driver feedback. Every delivery provides new data. Companies that capture and analyze driver insights – such as better drop-off locations, restricted access points or peak congestion times – need a flexible and adaptable routing algorithm, making each subsequent delivery smoother.
- Proactive issue management. By analyzing past trends, companies can anticipate issues (such as adverse weather conditions or failed deliveries) and proactively adjust plans.
- Robust territory assignment. One major challenge in parcel delivery is maintaining stable and efficient delivery zones, despite fluctuating parcel volumes. Territory Assignment Optimization (TAO) ensures cost-efficient operations by structuring delivery areas that remain stable over time, reducing unnecessary adjustments. AI models analyze thousands of demand scenarios to keep operations consistent while minimizing costs.
Ultimately, location intelligence powered by AI is not just about getting from point A to point B: it’s about learning from every trip and improving efficiency at scale. In fact, a McKinsey study found that implementing advanced digital supply chain solutions can lead to up to a 15% reduction in logistics costs, highlighting the significant impact of these technologies on operational efficiency.
How is location intelligence transforming real-time decision-making in logistics? What are some of the most impactful use cases you have seen?
A key pain point in logistics is the lack of real-time visibility and responsiveness. Without a direct connection to delivery operations, companies struggle with route deviations, delays and inefficiencies that have an impact on both cost and service levels.
For real-time decision-making to work, a direct connection to the vehicle is essential. Since in-vehicle systems tend to be closed off, a dedicated companion application provides the best solution. This allows companies to monitor execution in real time and interact with drivers effectively.
AI-driven navigation enhances this by ensuring trucks follow optimized routes tailored for their specific requirements, such as vehicle size restrictions and weight limits. Real-time processing of route data – including geofencing for detecting deviations, speed analysis and compliance tracking – helps companies proactively address inefficiencies and ensure deliveries remain on track.
By leveraging AI, geospatial data and predictive analytics, location intelligence transforms logistics from static planning into a dynamic, data-driven system that continuously learns and adapts. This leads to safer, more efficient and cost-effective operations, for both conventional and electric fleets.
Many logistics providers still rely on legacy systems. What is your advice for companies looking to integrate advanced location intelligence into their existing infrastructure?
One of the biggest hurdles that logistics companies face is modernizing their systems, but without disrupting ongoing operations. Legacy infrastructure often lacks integration capabilities, making it difficult to leverage advanced location intelligence.
Today, logistics companies have several options for adopting location intelligence, based on their internal capabilities:
- For companies without software development resources, the best approach is to leverage a Transportation Management System (TMS) that integrates location intelligence. In this case, it’s important to work closely with the location intelligence platform behind the TMS to ensure proper configuration and optimization.
- For companies with in-house development teams, the ideal approach is to directly integrate SDKs and APIs from a location intelligence platform. This provides greater flexibility and control over data and routing processes.
Regardless of the approach, engaging with the location intelligence provider early on is crucial. These platforms offer expertise on the most impactful use cases and can guide implementation to maximize efficiency gains.
How can location intelligence help solve the last-mile delivery challenge by enabling last-meter precision, ensuring packages reach the right place at the right time?
Last-mile delivery remains one of the biggest cost and efficiency challenges in logistics. Poorly optimized routes, inaccurate geocodes and a lack of granular location data lead to delays, failed deliveries and increased operational costs.
The answer is to go beyond just routing to a geocode in the center of an address. There is much more information that can be associated with a delivery location, such as the closest parking, building layout, access points and delivery entrance locations. This aligns with the need for companies to refine maps based on real-world delivery experiences, rather than relying solely on static data.
Territory Assignment Optimization (TAO) further enhances last-mile efficiency by structuring delivery areas in a way that remains stable over time, even as parcel volumes fluctuate. By leveraging AI to model and predict a vast number of possible demand scenarios, TAO ensures that delivery sectors are not only optimized for cost-efficiency, but also remain operationally feasible. This is particularly valuable for manual sorting processes, subcontractor agreements based on zip codes, and long-term route consistency.
With AI-driven location intelligence, companies can adapt their maps, improve routing decisions, and ensure that deliveries consistently reach the right place at the right time, while also maintaining long-term efficiency.
Looking ahead, what innovations in location intelligence do you see shaping the future of logistics over the next few years?
Logistics companies are under increasing pressure to improve efficiency, reduce costs and meet growing sustainability targets. The next wave of location intelligence innovation will focus on addressing these challenges.
We’ve already discussed key innovations, such as map customization and real-time monitoring, which will play a major role in the near term. Dynamic map customization will refine route adjustments based on real-time data, improving last-mile precision, while real-time monitoring and feedback will optimize planning on a continuous basis. As the adoption of electric vehicle (EV) for fleets increases, location intelligence will optimize routes by factoring in energy consumption and charging station availability.
Further ahead, AI-powered predictive analytics will become essential for anticipating disruptions – whether traffic, weather or customer-specific challenges – allowing proactive adjustments to delivery strategies.
Autonomous vehicles and drones will also play an increasingly prominent role. Location intelligence will ensure smooth operation, providing real-time data for navigation in complex urban environments.
The future of logistics will be shaped by the integration of location intelligence, AI, and automation, driving efficiency, flexibility, and sustainability.
You can hear more on precise location intelligence from Bart Coppelmans, Sr. Director Product Management @HERE at the panel discussion “Supercharging logistics: new digital technologies and real-time data in action” day 1 Leaders in Logistics Summit, March 12th, 17.05 in Berlin. For more information before the event reach out to HERE Technologies to discuss how they can support you at https://www.here.com/contact
Bart Coppelmans, Sr. Director Product Management, HERE Technologies
Bart Coppelmans is the Business Unit Head of Enterprise solution product portfolio and with his team responsible for driving growth within the enterprise industry segments. His team develops and drives the portfolio solution strategy, product roadmap, development, partnerships and GTM execution around real-world customer problems and challenges.
Bart has almost 20 years of experience in leading positions, always with a focus on the market, driving new business creation and growth in key industries. With his background in business economics, key areas of expertise include strategy consultancy, change management, business & product development, and developing & executing GTM strategies.
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