National Supermarket Chain identifies $1.2M in Annual Benefits through Warehouse and Logistics Optimization

A major American grocery chain with over 2,500 stores nationwide

Reduced Transportation Costs
Routing Efficiency


The client was experiencing high transportation costs even though their route efficiency and truck utilization was low. They wanted to optimize delivery schedules to streamline routes for their different stores while still allowing for cross docking of commodity products. 


Our team conducted interviews with a team of stakeholders and subject matter experts. Using data provided by the organization as well as visiting the company’s distribution centers, our team was able to implement 8 different pilot tests that gave the client a better understanding of the interactions and dynamics at play. Additional long-term improvement opportunities were identified 

  • Reduce organizational and transportation costs by identifying efficiency zones and creating complimentary and staggered delivery windows 
  • Process infrastructure creating efficiency metrics and standardizing operating procedures across the organization 
  • Determine a desirable delivery frequency by changing scheduled deliveries to increase the frequency of deliveries and re-organized when stores get their product 
  • Optimizing routings by giving routers staggered windows to promote a zone-based routing plan 

Value Created

Our client realized immediate financial benefits as well as several long-term organizational benefits including:

  • $265K in reduced transportation costs  
  • 22% increase in in-store deliveries & a push towards a Just-in-Time supply chain 
  • 32% increase in routing efficiency to 96% 
  • 57% decrease in average mileage between stops 

Reduce transportation costs and increase deliveries