A Custom-Built Route Optimization Tool Enabled a Convenience Retailer to Save an Average of $4 Million Annually Per Distribution Center






Route Optimization Tool

  • Optimal truck routes resulted in an average savings of $4 Million annually per distribution center
  • Reduced carbon footprint by 28%
  • Savings from better utilization of resources in the network. The solution was rolled out to more than 2000 waypoints and DCs nationwide.
  • Returns from stores were also handled effectively using the tool

A US-based convenience retailer needed to re-plan their fleet and optimize routes owing to surge in sales. The routes were modified to accommodate shifts in demand, new store openings and mergers. The heuristics and rule-based algorithms the company was relying on was no longer sustainable.

  • Important metrics like scheduled stop time, fleet size and capacity were studied under current operating conditions
  • Generic algorithms were used to arrive at the most optimal solution
  • Simulations were conducted to test the variations in demand, delivery cycles and fleet capacities to estimate savings.    

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