LAST MILE OPTIMIZATION

The Philippines

Sector

Pharma


Issue

A distribution company was looking for a step change in domestic transport execution, both in efficiency gains and in quality performance.


Solution

Undertake an in-depth study of planning, processing, performance, service level, infrastructure, transport partners and cost to serve.
Digitally map all metropolitan outlets
Revise drop practices that hold up vehicles
Analyse packaging volume/cost reduction opportunities
Apply automated routing to analyse and test fleet optimisation options:

  • Restructuring of route boundaries
  • Rescheduling of call frequencies
  • Daily (pre-pick) automated route optimization

Results

  • 30% overall delivery cost reduction
  • 99% P.O. fulfillment
  • 45% reduction in delivery fleet/li>
  • Immediate freeing up of funds for reinvestment in fleet quality
  • Reinforced barrier-to-entry against potential competitors