Business Challenge
Logistics optimization for reduction in transportation costs.
A leading pharmacy chain wanted to evaluate its logistics operations and identify opportunities to optimize the transportation routes to bring down transportation costs.
Situation: Identifying opportunities to optimize the transportation routes
The client managed its logistics and transport services in-house while partnering with local common carriers to run its operations. The client wanted to identify opportunities to optimize the transportation routes, in order to reduce costs along the logistics value chain.
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Solution
As-is and what-if analyses for network optimization.
We consolidated the historical shipment data, vehicle operation and fleet mix, benchmarked the transit time across multiple routes in real time, and conducted as-is and what-if analyses for network optimization. Based on the simulated data, we proposed multiple alternatives for changes in routes, number of stops in each route, distribution of fleet and hub usage.
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Impact
20% reduction in logistics costs and 95% accuracy in delivery.
The client reduced its logistics cost by 20% across the busiest route. Our end-to-end approach also helped the client improve its transport performance to achieve 95% accuracy on pick-up and delivery timings.
