Optimization of Distribution Strategy

MOTIVATION

Jednota Coop Jindřichův Hradec manages the distribution of goods to more than 145 stores in the region. Coop representatives sought to optimize this distribution process to reduce logistics costs and improve delivery efficiency. Each of the six delivery vehicles operated once a week between 6:30 AM and 12:30 PM. Additionally, the client faced challenges related to inconsistent data, which complicated effective route planning.

Delivery model analysis

More efficient route planning

scenario simulations

SOLUTION

After analyzing the delivery model, we proposed an optimization approach that ensured a more balanced workload in the warehouse, better vehicle utilization, and more efficient route planning. A crucial step in the process was also data cleansing. Using our distribution route modeling software, we designed an optimal solution for delivery days and routes. This tool also enabled scenario simulations to minimize delivery costs while maintaining the efficiency of warehouse operations.

CONCLUSION

The optimization of delivery routes for Coop Jindřichův Hradec led to significant cost savings—reducing the total number of delivery vehicles from six to five, resulting in a 15% reduction in logistics costs. Furthermore, our distribution route modeling tool is highly scalable and can be implemented in other Coop units or even other retail chains. Thanks to the rapid deployment of this solution, we provided the client with immediate results that not only enhanced operational efficiency but also opened opportunities for future development and further process optimizations.