23 February 2026

Business Logistics Workshop Opens New Pathways for Innovation in the North East

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Overview

A North East Business Logistics Discovery Workshop held on 26 January has set the stage for smarter, greener and more collaborative logistics across the region. The event was delivered in partnership with Food and Drink North East (FADNE) and University of Manchester as part of the 2025 Transport Research and Innovation Grants (TRIG) programme, funded by the Department for Transport through Connected Places Catapult. 

Bringing together eighteen stakeholders from industry and academia, the workshop aimed to: 

  1. Explore current business logistics challenges, needs and ambitions  
  2. Demonstrate an AI-powered optimisation tool developed under the TRIG project 
  3. Identify opportunities for innovation and collaboration across the North East  

Survey reveals pressing logistics challenges

The session opened with a presentation from the NICRE team of preliminary findings from the North East Business Logistics Survey, developed in partnership with FADNE and the University of Manchester.  

The findings highlight both operational realities and emerging opportunities: 

  • High reliance on petrol and diesel vehicles with 70% of vans deliveries and nearly 40% of car deliveries. While around 30% of deliveries involve electric vehicles or e-cargo bikes, adoption varies significantly. 
  • Barriers to low-emission delivery include upfront investment costs (35%), long travel distances (28%), limited charging infrastructure (28%), and other operational constraints such as load capacity and unsuitable routes or terrain 
  • Potential for growth in low-emission logistics is clear, with almost 70% of businesses showing interest in using e-cargo bikes or electric vehicles for deliveries, though around 20% remain unconvinced. 
  • Cost pressures dominate, with over half of businesses reporting high logistics costs as their primary challenge. Logistics account for an average of 17% of total business costs, reaching as high as 60% in some cases 
  • Ongoing operational challenges for business logistics also include long distances to suppliers and customers, road congestion, limited delivery options, driver shortages, and weather-related disruptions 
  • In-house delivery remains common, with nearly 70% of deliveries managed internally, placing additional strain on staff and resources 
  • Digital adoption is mixed, with only 50% of businesses using tools such as route planning or inventory systems. While 35% of businesses are not currently interested in adopting digital tools, around 40% are either interested or already using them regularly, with a further group engaging on an occasional basis — highlighting scope for wider uptake.  
  • Customer expectations are rising, driven by next-day delivery demands and real-time updates (the ‘Amazon effect’), while sustainability is not yet a decisive purchasing factor for most consumers compared to cost and speed  
  • Significant opportunities for innovation and support are evident. More than 60% of businesses are interested in shared delivery services, while funding, improved infrastructure, enhanced digital tools and training were identified as key enablers of change. Looking ahead, firms prioritise low-cost delivery, coordinated transport solutions and smarter digital systems, alongside time-saving, reliable and lower-emission options. 

Demonstrating the AI tool and its application

The University of Manchester team presented the TRIG-funded project, AI-Augmented Intelligent Road-Rail Logistics for Multimodal Supply Chain in UK, showcasing a prototype AI optimisation tool. 

Designed to address business logistics challenges identified in the survey, the tool allows businesses to map their logistics networks and compare scenario-based outcomes, including cost, time and carbon emissions, through an interactive dashboard. 

By enabling collaboration and multimodal transport options, including rail freight, passenger buses, EV vans and e-cargo bikes, the system aims to: 

  • Reduce empty vehicle movements 
  • Lower operational costs 
  • Improve route efficiency 
  • Cut transport-related carbon emissions 

The tool supports coordinated, rural-urban logistics and encourages horizontal collaboration between businesses, creating opportunities for shared transport solutions.  

 

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Business perspectives

Ten representatives from eight food and drink businesses, operating at both regional and national level, participated in a facilitated roundtable discussion, offering practical insights and user-focused feedback.  

Participants provided practical, user-focused feedback to help refine the AI prototype, recognising its strong potential for optimising logistics. Businesses emphasised the need for ease of use, seamless data input, and practical adoption in day-to-day operations. Small and micro-businesses highlighted limited staff capacity and the challenge of balancing daily production with exploring new (digital) tools, while others stressed the need for the tool to respond to real-time demand. 

Businesses also stressed that trust and established relationships remain central, and how they may be reluctant to switch logistics providers or work with unfamiliar third-party couriers. 

Overall, businesses saw strong potential in the tool but noted that effective use would require time for network mapping, testing, and scenario comparisons. 

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Arijit De, University of Manchester said:

“The workshop provided invaluable insights into the real-world logistics challenges faced by food producers, particularly rising transport costs and operational constraints. These conversations highlighted the strong potential for AI-enabled multimodal logistics, collaboration between producers, and smarter supply chain planning to drive down costs, improve resilience, and create more sustainable distribution networks across the UK.” 

Chris Jewitt, CEO of Food and Drink North East said:

"By bringing together food and drink businesses and delivery providers from the North East into one room, we were able to clearly see and discuss the real logistical challenges that come from delivering goods throughout the region. We now hope to build on that by collaborating and creating solutions that can be of true benefit to these businesses."

Next steps

The University of Manchester will host one-to-one discussions with interested businesses to explore practical use cases and scenario testing. To find out more, contact: Arijit De (arijit.de@manchester.ac.uk) 

FADNE is planning to establish a cross-sector logistics and supply chain working group to identify practical collaboration opportunities between food and drink businesses and delivery providers. To find out more, contact Chris Jewitt (chris@fadne.org) 

Businesses can still participate in the North East Business Logistics Survey, which can be accessed HERE 

NICRE welcomes enquiries on rural transport, e-cargo bike projects, and potential trial or funding opportunities. To find out more, contact Steven Morrison-Cairns (steve.morrisoncairns@newcastle.ac.uk) 

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