Industrial engineers receive the 75^th start-up grant at TU Dresden

The transport sector in Germany is booming. In 2021, almost 3 million tons of goods were transported by road alone. To ensure that all these goods are transported quickly and sustainably, logistics companies use assistive software to support their planning. TU Dresden’s Clover Optimization start-up team makes transport planning even more effective by combining two planning steps that were always separated until now.

During their research and project work at the Chair of Industrial Management, industrial engineers Felix Tamke and Leopold Kuttner developed an algorithm to support the decision-making process, making it possible to optimize the loading of vehicles while planning the route. At the end of 2022, the team was able to acquire the 75^th EXIST start-up grant for TU Dresden and has since been joined by Maurice Morabel for venture development. Thanks to the grant, the team is now preparing to launch its business.

Algorithms reduce planning time and transport costs

“Route planning alone involves taking many specifications into account, such as delivery times and various vehicle types. Since loading is neglected or only roughly planned during conventional routing decisions, routes often cannot be run as planned. They then have to be re-planned, which is time-consuming and costly,” explains co-founder Leopold Kuttner. “By integrating our algorithm in transportation management software, shipping companies can reduce their planning time, save on transport costs and plan with more confidence.” Initial customer tests show that integrating loading and route planning saves up to 50% of planning time as well as 7% of transport costs, and demand for vehicles can be reduced by 8%. For shipping companies with little information about the dimensions of the packages they will transport, the route planning module can also be used on its own. Logistics specialists in particular, who have come under increasing pressure due to a shortage of skilled labor and low margins, can use this approach to strengthen their position once again.

Clover Optimization’s main customers are logistics software providers. The algorithms are thus integrated into existing transportation management systems (TMS). “TMS providers are able to stand out from the competition thanks to our algorithms, which allow them to both attract new customers and retain current customers,” adds Kuttner. The company founders are currently holding intensive talks with potential pilot customers. Their goal is to have the software in operation with their first customers by the end of the year and thus to obtain feedback for further development.

On their way to becoming a company, the founders were supported by the dresden|exists start-up service and Professor Udo Buscher, Chair of Industrial Management. The team developed their initial business model at the dresden|exists boot camp and was therefore able to lay the foundation essential to their successful funding application. As a mentor, Professor Udo Buscher supported the team during the start-up grant: “The spin-off makes it possible to transfer the potential offered by mathematical optimization into practice. With the algorithms it has developed, Clover Optimization ensures that shipments are carried out efficiently, cargo space is used in the best possible way, and ultimately that the environment is not inordinately burdened.”

With the EXIST program, the Federal Ministry for Economic Affairs and Climate Action supports innovative, technology-oriented and research-based start-ups. The EXIST start-up grant covers the living expenses for up to three founders for one year. Moreover, the team receives a budget of up to EUR 35,000 for material resources and training. Researchers and students can obtain support with the application process from dresden|exists.

Contact:
Leopold Kuttner
Co-Founder Clover Optimization
TU Dresden, Chair of Business Administration, esp. Industrial Management
Tel.: +49 351 463-32360

https://cloveropt.com/

Frauke Posselt
dresden|exists, Start-Up Service for Universities and Research Institutes
Tel.: +49 351 463-36813

https://www.dresden-exists.de