Distribution Efficiency & Order Fulfilment Efficiency
Project Info:
This project was executed for one of the largest FMCG distribution companies in Georgia, aiming to enhance route optimization, order accuracy, and delivery efficiency. The initiative addressed inefficiencies caused by manual route planning, fragmented distribution processes, and suboptimal fleet utilization.
Challenge:
Manual route planning and fragmented distribution networks resulted in inefficiencies, with multiple trucks delivering to the same locations for different product categories (food, non-food, baby care, and chemical products).
Inefficient order-to-route mapping led to suboptimal truck utilization, increased fuel consumption, extended delivery lead times, and higher labor costs due to overtime.
Non-standardized order reconciliation processes at delivery points caused delays of 30–50 minutes per order, due to strict regulatory requirements for waybill accuracy.
Limited capacity to scale daily deliveries due to inefficient fleet management and resource allocation.
Solution:
Deployed a territory planning and route optimization system that mapped all delivery points using GPS-based geocoding, enabling automated load balancing and dynamic route planning.
Integrated an automated order batching system, optimizing truck load capacity and consolidating multi-category deliveries, increasing average deliveries per truck from 30 to 45 orders (50% increase in per-trip capacity).
Implemented an intelligent route optimization algorithm, streamlining dispatch sequencing and eliminating redundant trips.
Established a centralized call centre support team, providing real-time assistance to delivery teams for on-the-spot invoice reconciliation, reducing order correction time from 45 minutes to just 5 minutes.
Optimized fleet operations, improving vehicle utilization rates and enabling second-round deliveries without incurring additional labor costs.
Result:
- Daily order fulfilment capacity increased by 42.8%, from 350 to 500 orders per day.
- Fuel consumption reduced by 15%
- Significant improvement in fleet utilization, with a 40% increase in orders delivered per truck (from 30 to 42 orders per trip).
- Enhanced order processing efficiency, reducing on-site reconciliation time from 55 minutes to just 8 minutes per delivery.
- Improved cost efficiency, enabling delivery teams to complete second-round deliveries while eliminating excessive overtime.
- OPEX effect -12% Distribution cost reduction
By implementing advanced route optimization, automated load balancing, and real-time order reconciliation, the company achieved significant cost reductions, improved distribution efficiency, and enhanced service reliability.