Dive Brief:
- ArcBest has improved operating income by more than $1 million per month through its artificial intelligence-based city route optimization project, Chairman, President and CEO Judy McReynolds said Q4 earnings call Tuesday.
- “We are not just following the trends but leading the way with our AI projects, which have already delivered significant efficiency gains and are poised for further development,” McReynolds told investors.
- In an expansion of the AI initiative, the company has launched a pilot to extend the route optimization program into its shipment pickup process.
Dive Insight:
The city route optimization tool helps ArcBest-owned LTL ABF Freight reduce mileage and decrease fuel consumption, which supports a more sustainable future, McReynolds told investors in October.
It’s among several ongoing tech initiatives at the Fort Smith, Arkansas-based carrier. ArcBest also debuted a generative AI program last year to support an internal team that audits the quality of customer service interactions, McReynolds said in a Q3 earnings call.
“This team removes friction points and improves hundreds of processes every year, and this new tool quickly provides key insights to further advance these efforts,” the CEO said.
ArcBest’s operating income grew to $64.3 million in Q4, according to its earnings report, a 28% increase from the $50.2 million it reported in Q4 2022.
With the software, ArcBest seeks to build on its progress reducing purchased transportation and rented equipment, which also lowers its external city cartage costs, ABF Freight President Seth Runser said on the call Tuesday.
“We're constantly looking at our optimization roadmap, and we feel pretty good about some of the projects that are coming online,” Runser said.
