"No one is harder on a talented person than the person themselves" - Linda Wilkinson ; "Trust your guts and don't follow the herd" ; "Validate direction not destination" ;

May 05, 2021

Digital Transformation of Last-Mile Delivery

Key Notes
  • Grouping Deliveries
  • Everyday some set of deliveries to a subset
  • Delivery constraints - Size of truck, time sla
  • 200 Customers, 10 Trucks - different combinations
  • Academic point of view not possible
  • Never ever be able to go through all possibilities
  • Route Optimizer - Combine computer possibilities with ideas

  • Hard problem in delivery
  • Changing traffic patterns
  • Decreased parking availability
  • Smaller deliverables
  • Increasing cost per delivery
  • Challenges meeting same day delivery

Challenges
  • Too much emphasis on pieces
  • Extensive manual effort to generate route plans
  • Map on wall vs Map on computer vs real-time conditions
  • Assuming no variability and uncertainty
  • Continuous improvement is needed
  • Mobile Device = Data Capture Device
  • Data Science - Be smart dealing with data
  • Not easy thing to figure out data is right
  • With cloud store large data of customers
  • Spot problems/inefficiencies
  • Datahub is easy with tech
  • Lat / Long in the ballpark
  • Different Delivery problems
  • Ecommerce has created a headache for the delivery business
  • Handling off-cycle orders
  • Planning for truck drivers
  • Spread out
  • Keep track of master routes
  • Returns are expensive
  • Master Routes
  • Day Balance
  • Deliver similar items on same truck
  • Assign delivery day for efficient routes
  • Data requirements
  • Product data
  • Volume estimations
  • Truck data
  • Stop time = fixed time + lineitems*variabletime
  • Every customer has a distribution time
  • Drivetime
  • Google, bing, open street
  • With lots of customers route optimization difficult



  • Easier to build mobile platforms





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Keep Learning!!!

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