NT Logistics

Five stops can run in 120 orders. One is 18.5% shorter.

A worked example close to home: one truck leaves Frisco, makes five deliveries around Dallas and comes back. We kept the same stops and changed only the order.

Origin
Frisco, Texas
Stops
Five
Possible orders
120
Saved
19.8 miles, 18.5%
Aerial view of North Texas suburbs with two delivery loops drawn between the same five stops

The order as listed

LegToMiles
1Teel Pkwy, Frisco4.8
2Hedgcoxe Rd, Plano10.2
3Belle Grove Dr, Richardson14.0
4Airport Pkwy, Addison10.0
5S Goliad St, Rockwall31.3
ReturnStonebrook Pkwy, Frisco36.6
Total106.9

The same five stops, reordered

LegToMiles
1Hedgcoxe Rd, Plano6.0
2Belle Grove Dr, Richardson14.0
3S Goliad St, Rockwall20.4
4Airport Pkwy, Addison26.3
5Teel Pkwy, Frisco15.5
ReturnStonebrook Pkwy, Frisco4.9
Total87.1

That’s 19.8 fewer miles for one truck on one day. Across a fleet over a year, those miles show up in fuel, maintenance and driver hours.

Why nobody does this by hand

Five stops can be run in 120 different orders. Ten stops can be run 3.6 million ways. A fifteen-stop route, which is an ordinary day for a lot of delivery fleets, has more than a trillion. Average speed, dwell time at each dock, traffic patterns and the size of the service area all change which one is best. That’s a job for routing software, with someone who knows the roads checking that the answer can actually be driven.

What each stop is worth

Put a $100 sale on each stop and price the time and miles to reach it, and one of the five stops costs more than it earns.

StopSaleCost to serveMargin
Plano$100$34.68$65.32
Richardson$100$28.97$71.03
Rockwall$100$201.12−$101.12
Addison$100$55.22$44.78
Frisco$100$28.41$71.59

Once you know that number, you can talk about a minimum order or a delivery charge for Rockwall.

The full paper this example comes from: Navigating Excellence →

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