One of the most important aspects within retail and logistical businesses is establishing an efficient route to market. The distribution chain will play a significant factor in a variety of issues from the end-to-end cost price through to the carbon emission levels.
In an ever-changing market with complex demand forecasts, there is a requirement behind the scenes for a constantly developing intelligence system. We were tasked by UK-based retailer 3PL to overhaul their transport strategy, to ensure that each aspect was working at optimum level.
The company were struggling to find the right solution which would address their ‘Route to Market’ cost challenges, within the constrained capacity of their struggling distribution centres.
The first stage in establishing a solution for our client was to optimise the current ‘Route to Market’ strategy, which involved 8 distribution centres and over 1000 stores. The Cloudaeon team were able to build a fully explainable on demand AI model, which is designed to fit seamlessly with the whole business network.
The model is able to perform billions of permutation combinations, which result in a reduction of vehicle miles and lower carbon emissions. Before launching our complete solution, we ran a series of trials together with 3PL which were based on the output of our AI model. This included changing transport links between the different distribution centres and trial stores, with results showing a clear reduction in vehicle miles.
Once the trials were complete our AI model was implemented across the business, through an on-demand user-controlled system. The system was able to address supply chain issues to establish the best possible ‘Route to Market’. By the end of the year the company was able to reduce annual miles by an impressive 7 million.