D-Wave and DHL Launch Pilot to Test Quantum Optimization in Air Freight Logistics

D-Wave and DHL Collaborate to Explore Quantum Logistics Optimization

In an effort that signaled growing corporate interest in quantum computing, Canadian quantum hardware pioneer D-Wave Systems partnered with DHL Supply Chain in March 2017 to pilot quantum-enhanced logistics optimization. Focused on global air freight routing and hub coordination, the collaboration aimed to determine whether quantum annealing could reduce inefficiencies in high-volume freight operations.

DHL, a division of the German logistics giant Deutsche Post DHL Group, is one of the world’s largest handlers of air cargo, serving over 220 countries with more than 260 aircraft. Their logistics optimization challenges include tight delivery time windows, ever-shifting weather patterns, customs delays, and multi-hub complexity. Traditional software methods often struggle to generate real-time optimizations at scale.

Testing Quantum Annealing on Real Routing Scenarios

The pilot project, which ran simulations through March and April 2017, was conducted at D-Wave’s facilities in Burnaby, British Columbia, using the company’s 2000Q quantum annealing system. The focus was to test time-sensitive cargo routing between DHL’s major global hubs—specifically scenarios involving Asia-Europe and North America-Europe corridors.

The D-Wave system used a quantum annealing approach, optimized for finding low-energy states in massive combinatorial problem spaces. This technique is especially useful for:

• Hub-and-spoke route balancing

• Time-constrained cargo prioritization

• Cross-dock optimization in major sorting facilities

• Fuel-saving aircraft scheduling across multiple carriers

“Quantum annealing allowed us to represent routing problems as QUBO (Quadratic Unconstrained Binary Optimization) models, which are a natural fit for this kind of hardware,” said Dr. Alan Baratz, then D-Wave’s Chief Product Officer.

Key Findings from the Pilot

While still early-stage, the pilot yielded notable insights. According to the project brief shared internally at DHL’s global innovation centers:

• The quantum system produced 5–15% improved schedule optimizations compared to classical solvers for select routing problems.

• Multi-hub coordination (e.g., Leipzig, Cincinnati, and Dubai) showed the most benefit when constrained to short delivery windows (under 48 hours).

• The system could process thousands of routing permutations in seconds, enabling near-real-time recalibration in response to changes like weather disruptions or customs holds.

Although the improvements were not universally consistent across all routing types, the value of rapid scenario testing during high-stress logistics events—like holiday surges or emergency response shipments—was emphasized.

“We see quantum computing as a long-term investment that could eventually enable autonomous logistics planning systems,” noted Katja Busch, Chief Commercial Officer at DHL at the time.

DHL's Broader Quantum and AI Strategy

This quantum pilot aligned with DHL’s forward-looking technology roadmap. In 2016, DHL published its landmark trend report, “Artificial Intelligence in Logistics,” which identified quantum computing as a key technology to monitor in the coming decade.

DHL has also been investing in predictive analytics platforms, digital twins for warehouse management, and AI-based inventory forecasting. Quantum computing was viewed as a future accelerator of these tools.

Importantly, this pilot laid groundwork for later DHL ventures into hybrid classical-quantum algorithms and cloud-access quantum models, which would emerge as commercially viable in the 2020s.

D-Wave’s Commercial Push

For D-Wave, the DHL partnership represented an early commercial validation of its quantum annealing hardware for non-academic use cases. While much attention in 2017 centered around gate-based quantum systems (such as IBM’s and Google’s), D-Wave carved a niche in applied optimization.

This pilot with DHL built on previous D-Wave collaborations with NASA, Lockheed Martin, and Volkswagen. In fact, the automotive giant had just completed a traffic flow simulation project with D-Wave in February 2017, involving Beijing road congestion.

“Optimization is a universal problem across industries. We believe logistics is one of the most fertile areas for real-world quantum impact,” said Vern Brownell, then CEO of D-Wave.

Implications for Global Freight

Air freight is particularly suitable for early quantum adoption due to its high cost-per-kilogram, tight SLAs (service-level agreements), and complex regulatory overlays across jurisdictions. Any improvements in routing or aircraft usage yield measurable ROI.

Furthermore, global freight operations are already heavily digitized, making them ideal candidates for overlaying quantum-enhanced decision systems onto existing data infrastructure.

Quantum logistics scenarios modeled in this pilot included:

• Cold-chain routing for temperature-sensitive cargo

• Emergency medical supply airlifts with optimized flight legs

• Dynamic hub reallocation during storm season or conflict zones

The DHL-D-Wave experiment made a compelling case for continued exploration, particularly as larger and more stable quantum systems became available.

Industry Perspective and Global Competition

While DHL was among the first movers, other logistics providers like UPS and FedEx also began exploring quantum computing in adjacent R&D labs by late 2017. In Asia, Japan Post and Singapore Post started conversations with local universities regarding hybrid AI-quantum optimization as early as Q3 of that year.

From an academic perspective, the University of Maryland’s Joint Quantum Institute and the UK's Oxford Quantum Group began publishing papers on logistics applications for quantum computing around this same period—validating growing interest from both public and private sectors.

Future Directions and DHL’s Roadmap

While the pilot was not scaled beyond simulations in 2017, its success led DHL to earmark further R&D into hybrid quantum-classical solutions. By 2021, DHL Supply Chain partnered with the Fraunhofer Institute for a second-phase quantum logistics study.

As for D-Wave, its focus on “quantum advantage” in applied sectors gained traction in the late 2010s, with logistics emerging as a top-three target industry, alongside finance and mobility.

Notably, D-Wave began offering its quantum optimization services via cloud-based platforms in 2018, lowering barriers for logistics companies to experiment without investing in quantum hardware directly.

Conclusion

The March 2017 DHL and D-Wave pilot marked a turning point in the exploration of quantum technology in global logistics. By testing quantum annealing against real-world air freight routing problems, the initiative provided valuable insight into what quantum optimization can—and cannot yet—achieve. It also paved the way for broader interest in hybrid logistics planning, cementing DHL’s reputation as a forward-looking supply chain innovator and spotlighting D-Wave’s unique approach to applied quantum computing.