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AI Revolutionizes Fleet Logistics, Cuts Costs, and Accelerates Electric Truck Adoption

Vedanshi SinghRadhika Garg (Contributor)byVedanshi SinghandRadhika Garg (Contributor)
5th July 2025
in European Commission
Reading Time: 2 mins read
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AI Revolutionizes Fleet Logistics, Cuts Costs, and Accelerates Electric Truck Adoption
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A groundbreaking study published in Germany has shown how artificial intelligence can transform freight logistics by significantly reducing costs and boosting the use of electric trucks. Conducted by autonomous logistics pioneer Einride and Europe’s largest applied research institute, Fraunhofer ISI, the research focuses on optimizing freight operations for greater sustainability and economic efficiency. As covered by ESG Broadcast, this study marks a pivotal example of digital innovation driving ESG-aligned transport solutions.

The study analyzed over 38,000 shipments and 200 vehicles from REWE, one of Germany’s largest grocery retailers, operating in the Berlin region. It compared two strategies for transitioning from diesel to electric trucks: a direct 1:1 replacement and an AI-driven system-wide optimization using Einride’s advanced planning software.

The results were clear. AI-optimized fleets delivered 85% of the total payload and covered 54% of the mileage, far outperforming the traditional 1:1 replacement model, which reached only 57% of payload delivery and 32% of mileage coverage. “These findings highlight the transformative power of intelligent logistics planning over simple vehicle substitution,” noted the report.

Moreover, the AI approach delivered substantial economic benefits. Compared to an all-diesel fleet, the AI-managed system achieved an 8–13% reduction in total cost of ownership, while the 1:1 model offered only a modest 3% cost saving and remained heavily dependent on government subsidies for capital investment.

“At the fleet level, appropriate planning software that integrates route and charging planning has a significantly greater impact than, for example, increasing battery sizes or the uncoordinated expansion of charging infrastructure,” said Prof. Dr. Patrick Plötz, Head of Energy Economics at Fraunhofer ISI.

The research also pointed to greater operational flexibility. While both models benefited from installing 150 kW fast chargers at loading bays, the AI-optimized approach required less infrastructure and still maintained high levels of fleet electrification. Even without subsidies, the AI-planned fleet achieved cost parity with diesel operations—demonstrating that smart software can make electrification viable even under market constraints.

Beyond technology, the study underscores the importance of strategic innovation. “Economic efficiency is a crucial prerequisite for the long-term transformation of truck fleets,” said Dr. Fabian Nevries, Head of Transport Innovation & Technology at REWE, emphasizing the need to invest in smarter tools rather than just newer trucks.

This research signals a pivotal shift in how logistics and transport operators might approach electrification in the coming years. By prioritizing AI-driven planning over basic vehicle replacement, companies can realize cost savings, environmental benefits, and greater adaptability to changing regulations. ESG Broadcast will continue to follow such innovations that align business efficiency with sustainable development goals across Europe and beyond.

 

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Tags: AIAutomobilesClean Technology FundDecarbonizationelectric trucksElectric VehicleEuropean Commission
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Vedanshi Singh

Vedanshi Singh

Science communicator passionate about climate change, ESG, and sustainability, blending psychology with communication for impact.

Radhika Garg (Contributor)

Radhika Garg (Contributor)

Radhika Garg, holds a Bachelor of Commerce degree from Delhi University specialising in sustainable finance, ESG regulation, and climate policy. At ESG BROADCAST, she translates complex frameworks into accessible insights for financial professionals and sustainability stakeholders.

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