Implemented a Route Optimization solution using Sancus leading to reduction in transportation costs by ~ 800K USD

CASE STUDY

Implemented a Route Optimization solution using Sancus leading to reduction in transportation costs by ~ 800K USD

SUMMARY

The client is a B2B chemical manufacturing and distribution company headquartered in the United States. The client has more than 100K+ active Customer addresses in its database. Tredence was involved with the client in reducing overall Cost of Transportation, by improving Load Consolidation and their current Multi-stop (routing) solution. During the discovery couple of the gaps that Tredence identified were:

Transporter vehicles getting routed wrong (sub-optimal routing)
Erratic deconsolidation due to customer address not found

The major challenge was to build a solution that will be able to validate/enrich addresses to create optimal routes and bring down the cost. The solution was also required to work across all the multiple markets that the client was present.

APPROACH

The solution was broken down into two parts

Customer Address validation/enrichment, a one-time exercise with periodic refresh
Route optimization – tool/product that worked on top their existing TMS’s

Tredence’s Sancus enabled address validation/enrichment and Route Optimization solution was built using the enhanced customer address data. Following additional approach was followed for ensuring high quality address data for effective consolidation and routing –

Validate and enrich high volumes of global customer data along with their respective addresses
Process addresses from over 20 countries across the globe with varying address formats
Process addresses in non-English text
The enriched data was fed as input to the AI/ML based Route Optimization solution to come up with optimal and cost-efficient routes

KEY BENEFITS

The solution was able to enrich around 18% of the addresses in US and 23% of the addresses outside US
The solution was able to validate if a given customer business existed at the given location, using 3rd party services

RESULTS

The solution helped?reduce transportation cost & improve the On-time Delivery adherence metrics. It helped with reduced errors in routing leading to an additional 1% Transport cost savings (~700-800K savings for US market only).

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