Routing Optimization

Routing Optimization

Custom Data Science

Logistics
1 min read

Our client, a beverage delivery company, sought to optimize their delivery routes to enhance efficiency and customer satisfaction. We developed an advanced routing tool powered by Google OR-Tools, which automated the process of determining the most efficient delivery routes. This solution significantly improved their operational effectiveness, allowing them to exceed their previous performance benchmarks.

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The problem overview

The client faced challenges in optimizing delivery routes due to the complex nature of incorporating multiple restrictions, such as terrain conditions, vehicle availability, and size. The manual planning process led to inefficiencies, including suboptimal customer coverage and extended delivery times. Therefore, our main motivation was to automate the generation of near-optimal routes for their account managers and sales representatives.

Our solution

To address these challenges, we developed a routing tool using a combination of algorithms and technologies: Custom Clarke & Wright Algorithm: This was employed to generate initial routes by maximizing efficiency in terms of travel time between Points of Sale. Google OR-Tools: Leveraged to refine the initial routes by incorporating various business-specific constraints, such as time limits and vehicle capacities. 2-Step TSP Algorithm: Applied as a final optimization step, this method further improved each route by minimizing travel distances and enhancing overall efficiency. We also utilized clustering techniques like DBSCAN to group customers within a 500-meter proximity into single locations, simplifying the routing process. The solution was designed to adapt dynamically, with the ability to test various visit durations and adjust routes accordingly.

The results

Exceptional results were achieved through innovative solutions, turning the challenge at hand into measurable success.

#1 
Routing Optimization Tool

Achieved an average of 19.4 routes per day. Each route include approximately 11 visits.

#2
Improved Coverage and Efficiency

Surpassed the client's initial manual routing plans, which covered only 60% of customers to 95% with our automated system.

#3
Enhanced Business Performance

Enabled to maximize number of visits per day, improving the overall business performance.

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