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Improving Vehicle Utilization & Effective Route Planning

Nikhil Agrawal Supply Chain Intern(EF Ltd.) MS-GSCM 2017


CHALLENGES

Low vehicle No Tracking Of Excessive breach of


utilization(Monthly High Logistics Cost Vehicles/Poor SLA with the end
Avg.~30%) Driver Utilization customers
OBJECTIVE

Improve
1 Vehicle Maximize the volume delivered
Utilization per vehicle Period of poor
vehicle
Reduce Build a demand aggregation
utilization

2
Logistic model
s Cost Improve driver, resource
Implement
Vehicle utilization and improve on time
3 Tracking delivery percentage
Mechanism
METHODOLOGY
Process
Understandi Design & Analysis Test and Refine
ng

Week Week
1 8
Refining of zones
Designing the Testing model on
demand past data
Understanding aggregation model
Existing delivery Implementing
model Deciding zones route planning
Sales and demand based on demand based on Google
data collection patterns Maps & Analytics
DEMAND AGGREGRATION
MODEL

1 Zoning of Demand

Aggregating demand
2 and measuring
utilization zone wise
ROUTE PLANNING THROUGH GOOGLE MAPS API BASED TOOL
3
Aggregating
4 underutilized zones
Estimating vehicles in each
with other zone
zone
5
Designing the routes for
each zones (travelling sales
man problem)

Image only for illustration (taken from google)


OUTCOME

Pre Implementation Post Implementation

Vehicle utilization improved from 30% Avg. to 80 % Avg.


Vehicle count reduced from 7 to 4 with the estimated saving of 2 million INR
anually for R4 regional warehouse
Driver utilization improved by 50% and delivery points covered increased
from 4-5 to 8-9
Real-time tracking of vehicles through GPS reduced the gap between expected
and actual time of delivery
RECOMMENDATIONS

1 Scale the model designed for


regional warehouse to all
warehouses

Integrate demand

2 aggregation and route


planning tool into one user
friendly mobile application

Improvise suggested

3 changes in the reporting


format in order to capture
utilization more accurately

4 To cater excessively low


demand zones by courier
services

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