Tyson Foods Takes First Taste Of Autonomous With Gatik

Tyson Foods has started utilizing self-driving delivery trucks made by Gatik in the northwestern region of Arkansas, which happens to be the home base of the food company.

A major player in the global food industry is exploring the realm of autonomous deliveries for the first time. Tyson Foods, one of the largest food producers worldwide, will kickstart its venture by transporting goods from one processing plant to cold storage facilities and distribution centers in northwest Arkansas. This will be made possible through the utilization of self-driving refrigerated trucks, managed by Gatik AI Inc., as the companies shared their exciting news on Wednesday.

According to Patrick Simmons, who holds the position of Vice President of Transportation at Tyson Foods, the smaller Gatik robotrucks are better suited for middle mile deliveries. This allows the company's larger trucks and drivers in their private fleet to be available for longer distances and bigger loads.

At first, Tyson plans to operate a group of self-driving Gatik trucks for 18 hours per day, covering routes that are approximately 12 miles long in the Rogers and Springdale region of Arkansas.

Nevertheless, Simmons claims that the company has pinpointed 40 suitable areas throughout the United States where operating Gatik autonomous trucks would be feasible on a weekly basis. This will enable 40 drivers, who typically put in 11-hour shifts per day, to be released from their duties. The outcome? Substantial savings in expenses per each unmanned truck.

Patrick Simmons, second-in-command of transportation at Tyson Foods

"When we began examining the situation, I believe around the third year, the single truck allows us to save approximately $500,000 compared to what it would have cost us otherwise," Simmons stated during an interview. "If we consider only the savings, that represents the basic comparison of costs. However, when comparing our current approach to using Gatik, it fails to capture the fact that the driver is now able to handle an additional 700 loads per year. This not only saves us almost another $500,000, but also prevents the need to hire a third-party carrier for the same tasks."

Gatik has witnessed a significant surge in its business in recent years by catering to top-notch retail and food establishments like Walmart, Kroger, and Loblaw, in addition to serving companies like Pitney Bowes, Georgia-Pacific, and KBX.

Gautam Narang, the CEO and co-founder of Gatik, states that the business is thriving primarily due to the need to tackle a shortage of commercial truck drivers, which started before the Covid-19 outbreak and has worsened since then.

"The lack of drivers is predominantly seen in the CDL sector. From my understanding, there are currently more than 80,000 vacant driving positions, and this number is projected to reach around 160,000 by the end of the decade," Narang stated during an interview. "Consequently, our clients are actively seeking alternatives to CDL license holders. This is where we step in to ease the burden and explore possibilities for replacing and revolutionizing class eight trucking routes."

Gatik's partnership with Tyson marks a significant advancement in their business operations. In the past, they primarily operated small trucks for short distances. However, this collaboration with Tyson will introduce Gatik to the world of class 7 trucks, enabling them to transport larger quantities and cover lengthier journeys.

Gautam Narang, the head honcho and one of the masterminds behind Gatik,

"When we established the organization in 2017, we primarily focused on conducting straightforward deliveries within a limited radius of less than 10 miles. However, as time progressed, we have gradually enhanced the intricacy of the systems we automate," Narang clarified. "Consequently, our operations have evolved from facilitating deliveries from one specific location to another, to encompassing multiple pickup locations and numerous drop off points. Furthermore, our trip plans have expanded, enabling us to efficiently handle journeys spanning up to 300 miles across our entire network."

Gatik wasn't the only company in the running for the profitable Tyson contract. Simmons disclosed that Gatik was one of five companies they considered, but ultimately chose the Mountain View, California-based tech firm. This decision was influenced by Simmons' prior knowledge of Gatik's successful history with Walmart, as well as their impressive safety track record.

According to Simmons, the presentation they delivered was the absolute finest when it came to safety. In my experience within the field of logistics and supply chain, I can confidently say that their safety record is unmatched by any other trucking company I have collaborated with. This exceptional track record compelled us to partner with them in order to fully harness the potential of their innovative technology.

Fuelled by the fusion of Gatik's emphasis on safety, advanced technology, and the ability to deliver significant financial benefits, Simmons implied that the likelihood of the partnership between Tyson Foods and the self-driving truck company expanding is exceptionally high.