25 August 2026

AI tool explores smarter, lower-carbon logistics for rural businesses

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Overview

A new AI-powered logistics planning tool developed by researchers at the University of Manchester in collaboration with NICRE could help small rural businesses coordinate deliveries, reduce transport costs and cut carbon emissions. 

The AI-Augmented Intelligent Road-Rail Logistics for Multimodal Supply Chain in UK project was funded through the 2025 Transport Research and Innovation Grants (TRIG) programme by the Department for Transport (DfT via Connected Places Catapult. 

The project has developed and validated a prototype logistics coordination tool at Technology Readiness Level 4 (TRL 4), demonstrating the potential for AI to support more efficient and lower-carbon rural freight. 

Download the final report using the button below. 

Download report here

Tackling the rural logistics challenge

Small and medium-sized food and drink businesses in rural areas often manage deliveries independently using partially filled vans. This typically results in low vehicle utilisation, higher delivery costs and avoidable carbon emissions. At the same time, passenger buses and trains can operate with unused capacity that could potentially be used to support freight movements. 

The project explored how digital technology and AI could help address these challenges by enabling businesses to coordinate deliveries, share transport capacity and explore multimodal logistics options. 

Led by Dr Arijit De at the University of Manchester, the project brought together expertise from NICRE, Food and Drink North East (FADNE) and Real-Time Logistics (RTL). 

NICRE colleagues Prof Matthew Gorton, Dr Barbara Tocco and Steven Morrison Cairns contributed through business engagement, behavioural research and expertise in rural innovation and transport. The project also builds on NICRE’s wider work with FADNE to explore practical approaches to improving rural logistics, including research into food hub distribution and the potential for passenger buses to carry cargo alongside passengers. 

Using data to explore collaboration

Using real supplier logistics data from FADNE’s members in North East England, alongside findings from the North East Business Logistics Survey undertaken with FADNE and NICRE, the team developed realistic scenarios for collaboration between food and drink businesses and logistics and delivery providers. 

The resulting prototype allows businesses to map their logistics networks and compare different delivery strategies through an interactive dashboard. Scenarios can be assessed in terms of cost, time, vehicle utilisation and carbon emissions, while the tool also explores multimodal options including rail freight, passenger buses, electric vans and e-cargo bikes. 

The approach aims to help businesses: 

  • reduce empty and partially filled vehicle movements; 
  • improve vehicle utilisation and route efficiency; 
  • lower delivery and operational costs; 
  • reduce transport-related carbon emissions; and 
  • identify opportunities for shared and multimodal transport. 

Working with businesses and industry

The prototype was demonstrated at a North East Business Logistics Discovery Workshop, hosted by NICRE at the Catalyst Building in Newcastle upon Tyne in January 2026. The workshop brought the project team together with regional businesses to explore the practical opportunities and challenges associated with more collaborative approaches to logistics. 

Further industry engagement was facilitated through RTL, helping the team engage with logistics operators and technology providers and explore potential pathways towards future deployment. 

The project demonstrates how better use of existing transport capacity and greater collaboration between rural businesses could contribute to more efficient freight systems, without necessarily requiring new infrastructure. 

The final report summarises the project’s development, findings and stakeholder engagement, as well as opportunities for taking the work forward. The validated prototype provides a foundation for live pilot testing at TRL 5, where the tool could be tested with logistics operators and regional businesses using real-world routes and operational data. 

Further operational validation, route testing and stakeholder engagement will be needed to assess how the tool performs in practice and explore its potential for wider deployment. The team will also explore opportunities for follow-on funding to support this next stage of development. 

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