Case Study

How We Became More Green by Optimizing Pickup Routes

Problem

Being a small business can have challenges when it comes to being responsive to customer requests. Client requests need to be responded in a timely manner to keep our customer service level high. Surplus Service has had to schedule daily pick-ups to and from our clients to meet their demands, generally on a first called basis.

Solution

Normal pick up requests originated internally or externally was scheduled as first time first serve (FIFO) and this method was resulting a lot of extra miles and time to complete orders. As a part of our Green Business SOPs and meetings, our team started to optimize routes by combining them based on regional or geographic zones. We evaluated sample client routes for a selected time period

Sample Scheduling Data

Total number of pick-ups in 3 months = 144 pick-ups
Total distance traveled for pick-ups = 3024 miles
Average distance traveled for one pick up = 21 miles
Unit cost to travel 1 mile ( labor, gas, depreciation etc. ) = $.92
Total cost of pick ups in 3 months = $2,782
Average cost for one pick-up = $19

Optimized Sample Scheduling Data

Total number of pick-ups in 3 months = 208 pick-ups
Total distance traveled for pick-ups = 1345 miles
Average distance traveled for one pick up = 6.47 miles
Unit cost to travel 1 mile ( labor, gas, depreciation etc. ) = $.92
Total cost of pick ups in 3 months = $1,237
Average cost for one pick-up = $5.94

Result

Optimizing 3 months of pick ups saved $1,545. Our cost/pick up was reduced $13.06, 68%. By reducing our carbon emission footprint, we did 64 additional deliveries with 1679 less miles