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
Problem Statement
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.
Solution
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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