Case Study: Tata iQ achieves up to 35% idle freight cost reduction and 550-ton CO2 savings with AIMMS

Idle Freight Optimization Lowers CO2 Emissions by 550 tons at a Large Steel Company

Tata iQ, a division of Tata Industries, partnered with the tubes division of a large steel manufacturer to tackle high costs from under‑utilized vehicles. The plant ships roughly 2,000 tons of tubes every 24 hours (~100 trucks/day), and planners struggled to determine the optimal number and type of trucks and how to pack them efficiently without a 3D loading model, leading to significant idle freight and empty miles.

Tata iQ developed an AIMMS-based idle freight optimization model integrated with a web‑based JavaScript 3D loading simulator to recommend truck loads and visualize packings. Delivered in about three months and used daily, the solution cut idle freight costs by 30–35%, reduced planning time, is being rolled out across other plants, and delivered an estimated 550 tons of CO2 savings per year.

Tata iQ