Time is money; timely distribution means cost-efficiency.
Choosing the most optimum route in the distribution process is critical for a logistic company. With one of the biggest logistic companies in Indonesia, we created a machine learning model aimed to improve this process and reduce inefficiency.
The Challenge
The delivery assignment process to the truck drivers in a big logistic company was done manually and takes approximately 6 hours per day. The delivery route is then determined by the drivers themselves using their knowledge which often leads to long delivery time due to traffic congestion.
The Solution
We developed an assignment management system with Vehicle Routing Problem (VRP) model to make delivery assignment more efficient as well as to estimate the distances of logistic route options and select the most optimal one.
The Outcome
- Automate delivery assignment for 200 trucks and 140.000 customers
- Reduce delivery total distance by 15%
