Grocery & convenience

Cutting logistics costs with smarter distribution routes

Logio partnered with Jednota Coop Jindřichův Hradec to redesign the distribution model for regional stores and implement data driven route optimization.

Outcome

By cleaning fragmented data, rebalancing delivery schedules and modeling optimal routes, Jednota reduced logistics costs while keeping warehouse operations stable and store service levels intact.

Reduction in logistics costs by

0%

Optimized delivery to more than

0 regional stores

About Jednota Coop Jindřichův Hradec

Jednota, spotřební družstvo v Jindřichově Hradci, is a regional consumer cooperative and part of the COOP network, focused on grocery and everyday goods retail in South Bohemia. The cooperative operates a network of neighborhood stores under several COOP banners and combines retail operations with its own wholesale warehouse and food production.

Retail turnover in 2023: CZK 944 million

Number of COOP stores: 65

Region served: South Bohemian region, Czech Republic

Initial challenge

Jednota Coop Jindřichův Hradec managed the distribution of goods to more than 145 stores using six delivery vehicles running once a week in a fixed morning window. The client faced high logistics costs, inefficient route planning and inconsistent data that made it difficult to further optimize delivery routes.

Project goal

The goal was to design an optimized distribution model that balanced warehouse workload, improved vehicle utilization and reduced logistics costs while maintaining efficient and reliable deliveries to all stores.

Solution

Designing a scalable route optimization model for regional retail

Logio analyzed the existing delivery model, cleansed and harmonized input data, then used a distribution route modeling tool to design new delivery days and routes and to test cost saving scenarios before implementation.

01

Analysis of the current distribution model

We analysed the current distribution model to map all routes, vehicle schedules and service constraints and to identify imbalances in warehouse workload and vehicle utilisation.

02

Data cleansing and preparation

We cleansed and prepared operational data to remove inconsistencies and align store, route and time window inputs for reliable optimisation.

03

Route modeling and scenario simulations

We used a distribution route modelling tool to redesign delivery days and routes and to simulate cost saving scenarios within warehouse and time window constraints.

04

Selection and implementation of the optimal solution

We selected and implemented the optimal setup that combined the strongest cost savings with a balanced warehouse workload and enabled rapid deployment.

Solutions implemented

Process Mapping & Analysis

Automated & Efficient Warehousing

Intralogistics & Material Flow

Impact

Lean distribution, lower logistics costs

15 percent logistics cost reduction

Optimized delivery days and routes together with better vehicle utilization reduced total logistics costs by 15 percent.

From six to five delivery vehicles

The redesigned distribution model allowed Jednota to serve all stores with one fewer truck, lowering fixed and operating costs.

Smoother warehouse operations

Adjusting delivery days and route structure led to a more even workload in the warehouse and reduced operational peaks.

Clean data for better planning

Systematic data cleansing removed inconsistencies and enabled reliable route modeling and scenario evaluation.

Decisions supported by simulations

Scenario simulations helped select a distribution setup that balanced cost savings with operational feasibility.

Optimise your regional distribution network

If you operate a network of stores with complex regional deliveries, we can help you redesign routes, rebalance warehouse workload and reduce logistics costs using data driven modeling and simulations. Let us talk about how to apply this approach to your distribution network.

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