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We have developed a novel, fast and robust, algorithm for multi-objective path optimization in networks. Currently we are using it for road transport route optimization – here we can find efficient alternative routes and can therefore reduce the driven distance (compared to using the fastest routes) by 5-15%. Similar approach could also be used in other problems, such as designing printed circuit boards, planning wiring in vehicles or other products, etc.
Multi-objective route optimization; add-on to existing solutions; improving the results by additional 5-15%
Our cloud modules can be easily integrated with existing solutions via API. We support tailoring of them to the needs of specific clients (objectives, parameters, geographies, vehicle types, etc.). They are designed in a modular architeture, ensuring easy integration with existing systems.
We typically do an initial study on historical data, which enables us to get to know the specific setting and perform the tailoring. The purpose is also to convince the client about the achievable benefits. Later we support the implementation process and also provide user support later on.
We don’t exhibit any negative impact (unless that would be specific goal of the customer). Our approach is quite novel, so there are no standardized certifications, but the results can be checked by a certified institution.
So far our solution has been implemented mainly in retail and distribution companies. One of our last customers is Mercator, Slovenia’s largest retailer. We optimize the home delivery routes. Our first client was Gajbica, a distributor of fruits and vegetables. We optimize their routes for distribution to offices and homes. We have also been a subcontractor at a project for Henkel Slovenija, a large cosmetics manufacturer, however their logistics operations were relatively simple and therefore the results were not very impressive.
We have made many studies on historical data, where we showed 10-30% savings with classical route optimization and additional 5-15% with the Stealth Routing multi-objective approach. We have prepared several pdf documents regarding that. However, it is difficult to determine the actual effect when the solution goes live, since there is no benchmark any more – no original routes that we can compare with. Even if we would check the actual costs, there are too many variables – volatile orders, prices of fuel, etc. The cases described above are the best examples.
https://docs.google.com/document/d/1uDhFuMtUwiZ-AY4_6WU0kSJhBZoXT7MNpzGjNJEZpuw/edit?usp=sharing
If they do distribution of their products (multistop routes), the expected saving is 5-15% (if they already use some route optimization, if not, it can be 10-30% higher) of the transportation costs. The ROI can be just a few months, for the setup costs, and the subscription model ensures only a portion of the savings is paid.
The initial setup costs are a few 1.000 EUR, depending on complexity and special tailoring requests, and the monthly fee is 15-100 EUR per vehicle, depending on the additional modules desired.