The increase in production has forced the automotive manufacturer to reconsider their part supply. Currently, all parts are delivered directly to the manufacturer from various suppliers. The advantage is that the goods are delivered faster, however, more vehicles and costs are spent.

The manufacturer is considering joining weekly shipments and developing an optimization model to minimize overall transportation costs while ensuring a level of service.

The company is also integrating sustainability and decarbonization into its strategy and would like to measure the new optimization model's impact on its carbon footprint.

First, we established the total weekly distance traveled by all vehicles. Currently, the company is getting delivery directly from suppliers without making additional stops, thus on a weekly basis travels around 12.000 km and has more than 70 routes.

We built a model which combines orders using 3 different types of vehicles and created 15 routes on a weekly basis. In this step, we reduced the number of routes by 78%.

By reducing the number of routes, we lower the distances that vehicles are traveling on a weekly basis which led to a 54% reduction in the carbon footprint that the company makes.