How Swiss Post lowered last-mile costs through dynamic routing
Surging demand for last-mile pickups and deliveries calls for dynamic solutions
Every day, Swiss Post must create routes for up to 4,000 products within one hour, mixing pickup and delivery orders with time-window delivery products.
Swiss Post’s main aim in acquiring GeoRoute was to satisfy customers’ expectations while lowering last-mile costs.
How did GeoRoute help?
GeoRoute creates operational efficiencies from dynamic routing: planning required resources; creating/optimizing routes automatically; sequencing pre-planned routes; inserting late-arriving products and new pickup orders; and giving estimated times of arrival.
About Swiss Post
- Owned by the Swiss Confederation, providing postal, express delivery and related logistics services
- Parcels processed in Switzerland rose by 9 M units in 2018 alone
- Customer satisfaction of 83% in 2017 maintained in 2018
Stats
6%
Cost reduction on the last mile for evening deliveries
18%
Cost reduction on the last mile for Saturday deliveries
5M
Parcels processed in 2018
Highlights
Objective: meeting customers’ expectations for new products
Saturday-, Grocery- and Evening-Delivery products
Realize synergies and savings from combining evening/Saturday mail pickups with time-window-delivery products
Use dynamic routing to reduce costs
GeoRoute’s dynamic-routing solution chosen for automated processes
Sequencing existing routes
Creating entirely new routes
Accounting for parcel data received only hours before vehicle leaves depot
Last-mile costs reduced within first year of deployment
6% for evening deliveries
18% for Saturday deliveries
Operational efficiencies enable effective same-day deliveries and last-mile pickups/deliveries
Planning required resources
Inserting late-arriving products and new pickups
We needed to be able to create routes for up to 4,000 products within one hour per depot, with pickup and delivery orders included. We are very satisfied with the operational savings achieved by the introduction of dynamic routing with GeoRoute.
Luc Demierre, Solution Designer
Post CH AG
