Delivery Route Planning and Order-Vehicle Assignment

Assign Customer Orders to Vehicles; Plan Optimal Delivery Routes; Maximise Vehicle Utilization; Meet Customer Orders On-Time In-Full (OTIF)
What It Does:
  • Create optimal plans for assigning customer orders to vehicles and for vehicle-wise routes – including direct deliveries, multi-drop milk-run deliveries and courier deliveries – so as to serve customer orders within serviceability commitments and minimize transportation cost
  • Recommend fleet sizing, i.e. the optimal mix of dedicated vehicles of various capacities and vehicles hired on a short-term basis
  • Meet customer serviceability targets, minimize transportation cost. Maximize orders served per vehicle (i.e, maximize vehicle utilization) subject to weights and volumes of customer orders, availability of various vehicle capacities, route-network, average speeds and travel times, vehicle loading, and other constraints
  • Run large-scale heuristic algorithm with millions of variables and small-medium scale mixed-integer linear programming model with thousands of variables in quick time
  • Facilitate ‘what-if’ analysis with multiple scenarios
  • Validate input data, resolve infeasibilities, and display violations of demand, serviceability, capacity and other constraints
  • Report performance metrics such as customer service level (for example, on-time in-full), cost-to-serve, orders served per vehicle, and vehicle utilization
  • Align sales and marketing, logistics, and customer service teams with common business objectives and facilitate inter-functional collaboration

Analytical Models and Techniques

  • Large-scale heuristic algorithm combined with small-medium scale mixed-integer linear programming (MILP)
  • Algorithms for ‘what-if’ scenario analysis
  • Algorithms for compliance analysis (comparison between optimal plan and actual implementation)

Tools and Technologies

  • Heuristic algorithm with Python
  • MILP models with GAMS and CPLEX
  • Compliance analysis with Python
  • Input data interface with Java
  • Dashboards for reports and collaborative platform with Power BI and Java

Case Studies

Our Clients

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