A multi-million dollar apparel brand that provides multiple lines of custom-designed products through its sales force network had very high shipping costs. The client was looking to build a robust optimization tool which could take into consideration various constraints related to geographic locations, sales agent performance, shopping seasons etc. and generate optimal shipment and routing schedule to minimize costs.
Merilytics partnered with the client to develop a complex routing optimization solution based on the classic multiple Vehicle Routing Problem (mVRP) with over 400 variables to generate optimal shipment route and schedule. The model also factors in various business constraints related to geographic locations, sales agent performance, shopping seasons etc. and dynamically generates the optimal route and shipment schedule. The tool is integrated with the client’s logistics and shipping API to be able to develop real-time optimized routes.
The dynamic network optimization tool helped the company shorten its product shipment-route planning process and realize higher earnings before interest, tax, depreciation and amortization (EBITDA) through lower shipment costs. The shorter planning process also provided the flexibility to change the routes based on additional data during the season.