Solving route optimization challenges in distribution logistics

Route planning and scheduling.

In the fast-changing world of last-mile logistics and distribution, managing delivery routes and corresponding costs is an essential task. The process can have a major impact on the business outcome. This is where major savings can be made.

More frequently than not, businesses realize the importance of proper route planning and have a solution in place. At the same time, sequencing stops to achieve an optimal solution is such a simple topic to grasp from all perspectives: customer, courier, logistics operator, service provider, subcontractor. Everyone understands the essence of the so-called Travelling Salesman Problem or TSP. The obvious simplicity is partially the reason why there are dozens if not hundreds different route optimization solutions out there on the market bragging to achieve the best results. Another reason boils down to the fact that solving the TSP is a very well-studied field. There is a ton of very granular knowledge and piles of literature on which approaches to solving the TSP work best and which do not. The subject is also widely taught in universities.

In this article I will take a dive into the topic of route optimization and discuss some of the challenges that companies face when embarking on such a project.