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

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

With over 500 pickups per day, our client holds a very relevant market share; however, its service level did not always match the leader position. This situation happened despite thousands of miles of empty travel to meet customers’ expectations.

After identifying the core issue, it was time to partner up with us and upgrade the current indicators, both in terms of cost and quality.

Through a reorganization of the operational process and a mathematical programming model to support the daily planning, the company was able to drastically reduce the number of empty trips as well as 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 this new operational process, the cargo is not only transported by one vehicle, but also by a sequence of transshipment operations that enable a better utilization of vehicles.

To support this complex system, it was critical to synchronize the resources, by developing a service model plan that could provide the best match between trucks and ensure the timely delivery of all freight.