Data Analysis and Engineering for Route Optimization
Client
It is one of the top 10 logistics companies in Brazil. Today, with over 7,000 pieces of equipment and vehicles, 6,000 employees, and 65 branches and operational bases, it offers a portfolio of customized solutions that cover the entire logistics chain.
About the Company
Today, with over 7,000 pieces of equipment and vehicles, 6,000 employees, and 65 branches and operational bases, it offers a portfolio of customized solutions that cover the entire logistics chain.
Challenge

From the beginning, the company's mission has always been to offer the best logistical solutions to its clients, with excellence in people management, prioritizing continuous improvement of its processes.

Solution
In light of this scenario, Lumini was challenged to evaluate the dataset of all delivery routes carried out, Starting the construction of an algorithm for route optimization and suggestions for improvements based on statistics.Thus, the IT company began the project by analyzing the data and information regarding the delivery routes that year. We divided the project into three stages: first, we performed data treatment and cleaning, then exploratory data analysis, and finally, the generation of propensity models. We analyzed the cities with the highest number of deliveries. “We analyzed the activities by distribution center, noting that one of them was responsible for more than 50% of the deliveries.” The solution adopted was based on the relationship between the cities in the routes taken. Based on the correlations found among them, it was possible to verify whether the cities considered important were being served by the best distribution centers. Once the relevant routes were filtered, the next step was to evaluate them. To do this, the cities on a route were ordered so that the distance traveled would be as short as possible. To create these optimized routes, the following assumptions were made: the truck cannot pass through the same city twice on the route, must complete 100% deliveries, and must return to the starting point. Thus, Lumini calculated the total distance traveled and the optimal starting point (considering the available distribution centers). The total distance traveled was used to compare the current routes with the optimized routes.
Results
More than 200 scripts were found where a different origin would reduce the total travel distance. Therefore, Lumini IT redistributed the cities based on the recommended Distribution Center. As a result, by replacing the current routes with the optimized ones, the company could reduce the total distance traveled by up to 22.9%, thanks to the realignment of approximately 70% of the routes.  The project helped to understand how deliveries were distributed in the cities served, jointly defining a concept of importance, and thus recommending the best routes.