Dynamic Routing

Important non-alcoholic beverage bottler and distributor in Mexico with national coverage. It has over 250 distribution centers (DC) and a fleet of over 11,000 distribution assets. The company has an extensive network of suppliers and business partners. It has a diverse portfolio of carbonated and non-carbonated beverage brands, as well as bottled water. Additionally, it has shown a strong commitment to social responsibility by implementing initiatives to support education, sports, and the environment. 


About this challenge:


Dynamic Routing 

Description: A non-alcoholic beverage bottler and distributor in Mexico wants to optimize the distribution management of its products in response to daily demand variations. The company has a large fleet of trucks and thousands of possible routes (+6,000) to distribute customer orders. 

They are looking for a low-cost technological solution that enables quick decision-making for efficient distribution. This includes determining the optimal number of trucks and the routes they should follow each day, as well as the number of stops to make. The solution should be able to adapt routes according to contingencies that may arise. 

Key Questions: 

  1. How can we identify the optimal number of routes for daily truck operations? 
  2. How can we optimize distribution routes using low-cost technology? 
  3. How can we improve fleet distribution based on daily demand? 
  4. How can we optimally distribute the mix of products in trucks to reduce travel time? 
  5. How can we have an up-to-date dynamic mapping system that adapts routes in real-time, considering different geographic and transportation characteristics around each distribution center? 

Key Performance Indicators (KPIs): 

  • Number of routes assigned per day and Distribution Center (DC) 
  • Kilometers traveled per day and per route (accuracy of actual vs. planned routes) 
  • Average daily calculation time for optimized routes (currently averaging 45 minutes per DC) 
  • Volume delivered per resources (truck, kilometers, etc.) 
  • Average travel time per route (to distribute assigned volume, accuracy of actual vs. planned routes) 

Other Considerations: 

  • Adaptability of the tool, such as adjusting volume measurements to the products used in the DC (crate, package, bottle, etc.). 
  • Balancing the work schedule of distribution operators, ensuring compliance with regulations.