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One of the largest retail and beverage multi-national company which has a network of thousands of retailers/ dealers/ supermarket stores which are fulfilled through a network of distribution centres

Client Must Manage Inventory In The Network In Right Quantity At The Right Time To Ensure That No Stock-out Happens

Cost Based Optimization Based Upon Tariff Structure Reviews

The number of total trips reduced by 10%

Uncovering savings in last mile deliveries for one of the largest retail and beverage multi-national company’s operations in Mexico where thousands of retailers/ dealers/ supermarket stores are fulfilled through a large network of distribution centres

OBJECTIVE

Client must manage inventory in the network in right quantity at the right time to ensure that no stock-out happens. The challenges faced by them:

  • Manual route planning with static clustering of deliveries irrespective of the delivery frequency at each location.
  • Complex network of the dealers/ retailers to be served while keeping the service levels high and delivery costs low.
  • Managing the multiple constraints and business rules around delivery windows, order priorities, TAT times etc
  • Managing the trade-offs such as vehicle reuse (multiple trips in a day) and daily working hours limit and labour costs.

WHAT WE DID

  • Enabled pre-processing of demand forecast data with appropriate business rules
  • Baselined the scenario as executed currently by the client in the transportation system which showed better results
  • Executed multiple scenarios with the finetuning of optimization strategies to achieve real-world savings
  • Validated the real world savings with the client to make sure these are feasible in execution

BENEFITS

01

Reduction in the number of Total Trips (loads) by 10%

02

Reduction in the Total Cost/ Unit by 9%

03

Improvement in the Truck Utilization by 11%

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