"ProCogia advised the logistics division of a CPG company in route optimization for a delivery sub network in the US." Ryland H. and Diane R.
Client has a network of dealers who have warehouses across multiple locations, which are serviced by independent truck operating companies. The current transportation network is inefficient, incurring significant expenses to the client. The current routes need to be evaluated to improve efficiency and decrease costs.
Figure 1: Current Flow
Figure 2: Proposed Round Trip ‘paths’ Along Network Arcs
The route optimization techniques deployed by ProCogia helped the client save approximately $280,000. Changes were proposed to the client for parameters, such as, truck size, truck speed and stop time to create an optimal usage of the transport network. It was also found that there is no seasonality in demand pattern. This is highly scalable analysis and extending the recommendations from one sub-region to other regions in US and Canada can provide significant savings in the logistics operations.