The Case Study of Implementing the Delivery Optimization System at a Fast-Moving Consumer Goods Distributer

Abstract

Using new optimization methods and information-communications technology has become the key issue in the competition among the distributers of fast-moving consumer goods. Introducing a delivery optimization system instead of manual routing enables significant cost savings. The prerequisites for optimization are stable information system and efficient company management. The rich vehicle routing problem model is discussed and the effects of implementing the delivery optimization system are presented. For four years of continuous utilisation, the system has helped the distributer to reduce the overall distribution costs. It also made possible to close down several depots and handle more customer requests without investing in the vehicle fleet. The developed optimization system enabled the distributer to adapt to the new distribution schedule and react to first indicators of recession very fast.