Food manufacturing
The same orders could run on up to 17% fewer miles.
A food manufacturer running its own delivery fleet asked us where it could save. We worked from about 10,000 orders shipped between November 2022 and February 2023.
- Who
- Food manufacturer, private fleet
- Data
- About 10,000 orders
- Mileage
- Up to 17% less
- Fleet
- 14 trucks today, 10–12 needed
What was going on
The average order weighed 686 pounds and the median 555. One order in ten, about 1,000 of them, came in under 236 pounds, at an average price of $300 and about $60 of profit each. There was no detailed transportation cost data, so the exact cost of delivering any one order couldn’t be calculated. The routes and the order profile could still be measured.
What we found
- Resequence the stops. Same orders on the same trucks, delivered in a better order: 8% fewer miles with almost no disruption.
- Re-route the existing orders. Same order sizes and ship days, routed for the shortest distance: up to 17% fewer miles. Exceptions keep a real fleet from hitting the optimum every day, so we called a steady 10% the realistic number.
- Set order minimums and delivery days. With minimum order sizes, set ordering days and daily routing, current volume fits on 10 to 12 trucks instead of 14.
What changed
| Scenario | Before | After | Change |
|---|---|---|---|
| Stops resequenced | 234,820 mi | 216,034 mi | −8% |
| Orders re-routed | 234,820 mi | 194,945 mi | −17% |
| Fleet size | 14 trucks | 10–12 trucks | Up to 4 fewer |
Where it stands
This was a roadmap. It sized each opportunity and left the order of implementation to the client, starting with resequencing because it changes the least for drivers and customers.
Our white paper walks through the routing options in this study. Navigating Excellence →