Optimization solutions for multi-echelon delivery and reverse logistics
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1 – Next Day Delivery & Reverse Logistics via a Multi-Echelon Distribution Network

The company is a leading international freight specialist (carrier and freight forwarder), with 2 000 daily routes and 75 000 pickups and deliveries.

Company’s Challenge

Handling simultaneously:

  • Transshipment and Cross-Docking: goods are shipped from factories to main depots overnight; from main depots to regional platforms in early morning, and finally from regional platforms to customers.
  • Flow Consolidation: larger vehicles are used to deliver the goods to regional platforms from which smaller vehicles can be used for the local distribution.
  • Creating Synergies: vehicles used to bring the goods from main depots to regional platforms should pursuit their route to deliver goods to customers on their way back to the main depot.
  • Reverse Logistics: the goods to be returned to the manufacturer should be collected by the vehicles doing the deliveries.
  • Accurate Capacity Monitoring: conveyed goods, delivered goods and returned goods must share the vehicle capacity.
  • Service time: parcels are checked at reception, hence the service time depends on the delivery.
  • Specific pickup/delivery time windows: customer locations are characterized by specific morning and afternoon opening hours.

Solution provided

The decision support tool provides in a few seconds a transportation plan that was taking hours to build by hand, with a significant decrease in operational costs thanks to synergies between conveyance routes and delivery routes.

The company is now able to compare multiple scenarios and to optimize next day deliveries through a multi-echelon distribution network, improving both its productivity and its quality of service.

Results

costs cut by

30%

solution's response time

30s

time to setup the application

2 weeks