Gaining Flexibility by Optimizing Hypermarket Retailer’s Routing Framework

The Challenge

There are various uncertainties when it comes to creating and maintaining a well-connected routing network. Achieving optimal service time regardless of a store front’s location can be difficult. Due to an inflexible routing framework, A US hypermarket retailer needed to redesign their inventory and distribution framework. The client’s framework suffered from delayed delivery times, slow relocation of inventory, and overall inflexibility. 

The Evalueserve team designed a solution that would help the client achieve optimal service times without hampering service levels. In order to achieve this, the Evalueserve needed to build a framework with transportation and telecommunications networks at the center. 

Our Solution

The Evalueserve team tackled the negative effects caused by the client’s routing framework such as delayed delivery times and slow relocation of inventory. By creating a robust routing system that promotes fast delivery times while maintaining a high level of customer service, enables the client to achieve maximum efficiency. 

During the creation of the client’s new routing framework, the Evalueserve team utilized two optimization techniques:

Hub & Spoke Model 

This model organized and prioritized specific distribution centers for one category, while boosting huge efficiency in overall operations. This model considered each store linkage’s service time constraints, truck capacity and demand. 

Dynamic Model 

The Dynamic Model responded to routing issues by providing flexible alternatives that gave the most cost advantage and logistically efficient results to the client. This gave the client needed flexibility. 

Each element of the new robust framework provided the client with the most optimal result by emphasizing flexibility and adaptability. 


Business Impact

The client’s routing framework was totally revamped after using both the Hub & Spoke and dynamic model. These models helped promote the overall efficiency and cost advantages for the client. There was a huge boost in efficiency in operations due to deliveries between distribution centers and store linkages being prompt and on-time.

The new framework also made it easy for the client to track and respond to each store linkage’s capacity level. This aided the client in remaining faithful to their goal of achieving optimal service time without hampering customer service levels. The flexibility aspect of the framework, being able to change routes based on demand and constraints, positively contributed to the client’s cost advantage. The client’s cost advantage was also supported by the ability to maintain robust levels of stock at stores. and gain economic advantage from optimized inventory movement. 

Greater cost advantages

The flexibility of the new routing framework enabled the client to easily adapt to operational constraints, resulting in the most cost-effective result.

Achieved optimal service time

The system's routing refreshed daily by automatically adjusting to a variety of variables that could affect the mocement of inventory. This allowed the client to provide customers with optimal service and delivery time.

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