Reshaping the routing operation and planning of a third party logistics provider

Challenge

Long-haul Freight Distribution planning with Transshipment

Approach

Prescriptive Optimization Analytics

Results

Reduction of over 30% in empty trips

Opportunity

Despite being a big player in transnational logistics, Company A realized the importance of accurately plan their international distribution activities in order to remain its path of success.

With over 500 pickups per day, Company A holds a very relevant market presence, however its service level did not always matched the leader position. This situation happened despite thousands of kilometers of empty travelling to meet customers’ expectations.

With the relevant issue identified, it was time to partner up with LTPlabs and upgrade the current indicators, both in terms of cost and quality.

Results

Through a reorganization of the operational process and a mathematical programming model to support the daily planning, the company was able to reduce drastically the number of empty trips as well as to meet the required delivery windows. The previous operation relied on direct routes between pickup and delivery points. When it was not possible to pair a return with another delivery, an empty trip was generated.

In the new operation the charges are not only transported by one vehicle, but by a sequence of transshipment operations that enable a better utilization of vehicles.

To support this complex system the synchronization of resources is critical, we have developed a planning as a service model within 2 months that found the best pairing to be made between trucks and ensure the timely delivery of all freights.

Results achieved in 2 months

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