# Logistics and Fleet Optimization

> Routing, fleet sizing and employee transport: operations optimized for total cost.

Routing deliveries, sizing the fleet and transporting employees are the same problem seen over different horizons. Orion models them together, with the real constraints of your operation (delivery windows, working hours, capacity, shifts and pickup points), and optimizes for total cost, not leg by leg.

## Overview

- Area: Value Chain and Logistics
- Delivery: customizable solution
- First pilot: about 8 weeks
- Solution 06 of 15
- Topics: Advanced VRP, Own vs. third-party fleet, Corporate employee transport

## When this decision gets expensive

If two or more sound familiar, this solution will most likely pay for itself.

- Routes are built manually and depend on the planner's experience.
- The fleet is sized for the peak, and sits idle the rest of the month.
- Cost per delivery varies widely between regions with no clear explanation.
- Outsourcing is triggered by urgency, not by an economic decision.
- Employee transport routes were designed years ago and never revisited against the current map of the workforce.

## What Orion delivers

- A routing engine with time windows, capacity and working-hour constraints.
- Sizing of own versus third-party fleet by demand scenario.
- Redesign of employee transport routes and pickup points based on where employees actually live.
- Fast replanning in response to same-day changes.
- A dashboard of cost per route, per delivery and per employee transported.

## Technical foundation

- **Constrained VRP:** Routing formulations with time windows, multiple depots and a heterogeneous fleet.
- **Metaheuristics:** Local search and hybrid algorithms for large instances in operational time.
- **Joint network and fleet:** Tactical fleet decisions fed by the simulated operating cost of the routes.
- **Geographic clustering:** Employee transport routes designed by density of origins and maximum door-to-door time.

## Indicators tracked

- Cost per delivery and per km
- Average vehicle utilization
- Delivery window compliance
- Cost per employee transported
- Average door-to-door time

## Case studies for this solution

- [Fleet sizing cut operating costs by 16%](https://orionotimizacao.com/en/case-studies/public-transport-fleet-sizing) — More than 120 vehicles and a thousand trips a day allocated by a mathematical model that keeps serving new routes.
- [From weekly scheduling to real time: a 53.51% cost reduction](https://orionotimizacao.com/en/case-studies/supply-chain-real-time-planning) — A model with 30 million variables and 2,000 points analyzed at once, with the gain growing each time decisions were made more frequently.

## Talk about this solution

WhatsApp: https://api.whatsapp.com/send/?app_absent=0&phone=5554991678345&text=&type=phone_number
E-mail: orion@orionotimizacao.com
Full method: https://orionotimizacao.com/en/method

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