Logistics provider reduces fleet costs
by more than 50% with Pegasus One

Logistics

THE CHALLENGE.

Efficient load building and route optimization can make or break all plans

Efficient load building and route optimization can make or break a logistics company’s growth and scalability plans. When one fast-growing company needed to move away from manual processes to improve and scale, they turned to multidrop logistics optimization to help them achieve their goals.

The client, an enterprise SaaS logistics and last-mile provider, launched in 2019 and grew rapidly. By late 2020, the organization had more than 400 employees in the Americas, APAC, and EMEA, serving more than 150 companies in over 20 countries.

Manual processes and lack of data insight

The company was being hobbled by the inefficiencies of its manual load building and delivery route planning. Siloed manual processes prevented them from getting “big picture” insight into data on orders, warehousing, SLA adherence, and more. Trailer space was not being fully utilized, poorly planned delivery routes were resulting in driver overtime, and delivery deadlines were being missed on an all-too-regular basis.

They had no way of providing the tracking their retail customers needed, and delivery customers had no visibility into the delivery process. Key components of their last-mile operations were broken and inefficient, leaving their drivers, the truck routes, and the packages to be delivered all in limbo. The company knew it had to modernize and automate its core processes and get better insight into its data, and it turned to Pegasus One for help.

MySQL | PHP | Google OR | Apache

APPROACH.

Machine learning delivers actionable data

Pegasus One quickly got to work, performing a deep-dive analysis of the company’s operations and infrastructure. After fully assessing the situation, Pegasus One recommended an API-based system developed on the LAMP stack (Linux O/S, Apache HTTP Server, MySQL database, and PHP).

“Using machine learning algorithms and Google OR-Tools, we were able to train the company’s system using its own legacy data,” said Tushar Puri, CEO of Pegasus One. “We developed a model for optimizing their entire logistics pipeline, from ordering to shipping.” The solution talks to the front end and the back end of their system using APIs, delivering the best, optimized pipeline, and real-time data that informs:

  • Vehicle routing, finding optimal routes for fleets that pick up and deliver packages with specific constraints (weight limits, delivery deadlines, etc.)
  • Scheduling, determining the best schedule for complex task sets that require specific resources, or have steps that must be completed in a specific order.
  • Packing, identifying with precision how many objects of various sizes can fit into a fixed number of bins to achieve maximum capacity.

SOLUTION OVERVIEW.

The solution provided everything the company needed—and more:

  • Anytime-anywhere track & trace
  • ETA prediction with real-time constraints
  • App-based tracking
  • Role-based visibility
  • Automatic order allocation
  • Flexible delivery scheduling
  • Real-time dynamic routing

BENEFITS.

With the solution in place, the company quickly began to see results—not just in workflows, but across all core functions, including operations, delivery routes, driver safety, and customer service.

  • Operational efficiencies: Better visibility into real-time data empowered the company to make better and more informed decisions around people, processes, and resources. Automated workflows delivered a big upsurge in efficiencies around productivity, inventory tracking, and delivery processes. The resulting cumulative cost savings helped cut operational overhead significantly.
  • Route optimization: The Pegasus One route optimization software used machine learning to scan traffic conditions continuously and recommend best routes to avoid delays and traffic jams. The real-time data also enabled the company to shrink delivery turnaround. Predictive alerts enabled the company to accurately forecast delays and better handle exceptions when they arose.Optimizing delivery routes brought advantages in two key areas. Using data to build smarter delivery routes reduced the time company trucks spent on the road, driving fuel, fleet maintenance, and repair costs down. And by reducing miles per delivery, fleet productivity increased significantly.
  • Driver Morale: The improved routes and delivery conditions had drivers reporting more job satisfaction and improved overall morale. Driver, traffic safety, and liability concerns were also diminished when drivers were on the road for shorter periods. In the past, driver stress and fatigue had been an issue. With the new system, driver break times and lunches were automatically factored into their schedules to allow them to relax and recharge before going out on the road again.
  • Customer experience: The company was also able to elevate their customer experience with the Pegasus One solution. They are now able to accurately let customers know when packages would be delivered and improved last-mile tracking reduced the incidence of loss and theft of customer packages.

RESULTS.

The solution provided everything the company needed—and more:

  • Reduced fleet maintenance costs by more than 50%
  • Increased deliveries by more than 40%
  • Increased first-time deliveries by more than 30%
  • Optimized route and load management increased delivery efficiency by 40%