Logistics company OneRail is Nvidia‘s artificial intelligence software can help retailers make faster decisions about the most efficient shipping options at scale, CNBC has learned.
The new platform, called OmniStar, allows retailers to use OneRail’s proprietary data to evaluate all shipping options using AI and identify the best shipping option for each individual order.
The last-mile delivery company told CNBC that the new platform will enable smaller companies to deliver at scale, improving margins and allowing them to compete with global retail giants such as: Amazon and walmart.
As e-commerce has grown, retailers have had to invest in agile supply chains to meet surges in demand and optimize efficiency. However, these manual processes are often fragmented across retailers and logistics operations.
“If you don’t have the ability to make lightning decisions, you’re giving up margin,” OneRail CEO Bill Catania told CNBC. “Last mile fulfillment is expensive.”
Choosing the best route for a package might previously have taken 20 minutes, but OneRail’s platform uses AI to do it in two and a half minutes, he said. Catania said the time saved means retailers can run larger, faster and more accurate supply chains.
“That’s where artificial intelligence comes in,” said David Daeschler, head of AI at OneRail. “Artificial intelligence is making those decisions very quickly, and that’s where Nvidia hardware and software comes in to really make this work at scale.”
Daeschler said the company began partnering with Nvidia three years ago to explore ways to incorporate AI into logistics processes.
“The result is a real-time decision layer that can route orders to the right carrier and delivery mode at the right cost, rather than relying on static rules or manual planning,” said Azita Martin, vice president and general manager of retail and consumer packaged products at Nvidia.
Catania said OneRail’s proprietary data, which includes a network of more than 12 million drivers and more than 1,000 logistics partners, is used to train the AI on the most efficient routes and delivery options.
“This is for their benefit and ours. We can operate more efficiently. They save money and provide a better customer experience,” Daeschler said.
The company told CNBC that its platform is already being deployed by some customers, including a major tire retailer, and that it believes Omnistar will save it $40 million in run rate over three years because it can use resources more efficiently.
It also estimates that the platform’s fourth-quarter gross merchandise value will exceed $6 billion.
Nvidia’s Martin said the platform will allow retailers to make faster decisions.
“The greater value for retailers is the ability to evaluate more scenarios, respond more quickly to changing conditions, and improve shipping economics without sacrificing service,” Martin said.
OneRail says the platform will enable small retailers to more effectively compete on delivery speed and efficiency.
Earlier this year, OneRail announced partnerships with: fedex Offer same-day delivery service to all customers and join the competition of retailers looking to offer their customers the best and fastest delivery option. Catania added that the partnership will also allow OneRail to strengthen its collaboration with small and medium-sized businesses.
“We’re kind of doing for distribution what ChatGPT and Anthropic have done for words. They all work the same way,” Daeschler says. “They give people more access to knowledge. We’re giving people access that can be delivered in an affordable way. … It’s all based on the original model, trained on the data we have, just like the words on the internet.”
