OPTIMIZING THE DISTRIBUTION OF FINISHED CHEMICAL GOODS: A CAPACITATED VEHICLE ROUTING PROBLEM WITH TIME WINDOWS – A CASE STUDY OF MAERSK OMNICHANNEL FULFILLMENT

Abstract

In the intricate domain of third-party logistics (3PL) companies, core activities pivot around operations and transportation, with transportation serving as the linchpin for successful 3PL operations. It plays a pivotal role in orchestrating the seamless flow of goods from manufacturers to warehouses, and finally to end customers. However, this vital function comes at a substantial cost, typically ranging from one-third to two-thirds of total logistics operational expenses. A case in point is Diversey, a client of Maersk Omnichannel-Fulfillment (Maersk OCF), specializing in slow-moving products like sanitation items. Presently, manual consolidation of deliveries based on distance assumptions poses challenges. This research bridges this gap by harnessing the Transport Optimization (TO) module in AnyLogistix software. Through meticulous simulation and optimization of route models using Maersk OCF data, the study aims to refine route planning, curtail transportation costs, and bolster profit margins. The research questions focus on optimizing routes using the AnyLogistix Transportation Optimization module and conducting cost comparisons between existing and proposed scenarios. The outcomes of this research reveal that systematic trial and error within the Transportation Optimization module yield four distinct scenarios for the L300 truck type. These scenarios are shaped by crucial parameters like distance constraints and the maximum number of customers per route. Notably, the third scenario emerges as the most efficient, strategically accommodating five customers per route, resulting in an optimal total cost of IDR 36,113,000. This meticulous experimentation and analysis culminate in the identification of an optimal route configuration. These findings offer invaluable insights for 3PL companies, providing a roadmap to refine their transportation strategies and bolster overall operational efficiency.