How a leading logistics company optimized vehicle use by 60% with FarEye Route Optimization

Case study

By FarEye | June 7, 2023

Case Study

How a leading logistics company optimized vehicle use by 60% with FarEye Route Optimization

Track

Route

E-commerce

Background

A prominent express delivery service provider in Thailand needed to streamline operations and enhance efficiencies in their first-mile pick up segment.

The global 3PL company offers various supply chain solutions that range from international freight forwarding to integrated logistics. With presence across 58 countries, it's the biggest international logistics company listed on the Hong Kong Stock Exchange. It particularly dominates some of the top emerging markets of the world and has local coverage across China, India and Southeast Asia.

Their fleet is a combination of owned and outsourced vehicles, and they handle an estimated 70,000 pickup points per day (~1B Shipments per day), directly from merchant locations.

The Last-Mile Challenge

The logistics company faced several challenges in its operations like lack of load visibility from pick up stops, inefficient truck planning, managing a large number of dispatchers/planners for daily operations, and manual modes of operations. These problems restricted their business growth.

At a Glance

60%+

Reduction in the number of vehicles required to do the same job (from 300 to 130, a saving of 170 trips a day, ~ 70,000 trips per year)

70%

Reduction in the number of planners/dispatchers

40%

Reduction in drivers

66%

Time saved in the driver dispatching process

The FarEye
Solution

FarEye Route helped in planning and optimization, and recommended better volume utilization of the vehicles. Its AI/ML capabilities predicted the cubic meter (CBM) expected from the customer in advance, based on past 1.5 years of historical data. This helped in planning appropriate load and vehicle type. The complete process was entirely headless. The loop optimization engine quickly and dynamically created efficient routes that helped achieve minimum distance per stop, delivery and pick up on the same route while maximizing vehicle capacity utilization (~97-98%). With real time dynamic routing, drivers get assigned new pick up requests automatically, without the need for any manual intervention. FarEye also offered an embedded BPM engine with low code or no code functionality that enabled them to add new business models within 1-2 days.

Lasting Results

60% reduction in the number of vehicles required to do the same job
70% reduction in the number of planners/dispatchers
40% reduction in drivers
66% time saved in the booking assign stage

How FarEye Can Help You

With FarEye Route you can plan routes in real-time based on customer’s chosen slots and preferences. Through our automated, multi-constraint (e.g. traffic conditions, vehicle types like EV trucks, driver affinity) routing solution, you can route next-day, same-day, big & bulky and hyperlocal deliveries and complete other last mile activities like returns, pick-ups, fly-bys in a quick and seamless way.

The loop optimization engine quickly creates dynamic routes even at very high volumes to minimize distance per stop while maximizing vehicle capacity utilization (~ 50,000 orders with 10+ constraints takes around 10 minutes for planning)

FarEye Route helps you increase the number of deliveries your drivers can perform in a day. It will help you reduce transportation and fuel costs, while ensuring every delivery reaches its destination on-time, in full and with 100% accuracy and visibility.