Worldwide Parcel Courier

Geoplan mapping and optimisation tools were used to efficiently merge two international parcel courier networks following a corporate acquisition.

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The Problem

An established international parcel company was bought out by a large worldwide parcel carrier. The challenge was to combine the networks of the two companies across a variety of markets to ensure optimal coverage and minimal cost.

The intention was to identify which depot locations to merge, close or re-locate  to deliver optimal final mile distribution and seamless integration with the parent company’s existing international supply chain.

“The Geoplan system was indispensable throughout the process of merging our two networks, we couldn’t have achieved the same result without it”

The Solution

Geoplan mapping and optimisation tools were used to identify synergies between the two network structures:

  • Mapping tools and visualisation used to identify candidate locations for merger or closure.
  • Mapping and territory optimisation tools used to identify and run a variety of strategic planning scenarios, quantifying the impact of proposed changes.
  • Route optimisation used to validate the proposed changes could deliver against customer SLAs.

Once the strategic planning process had been completed, Geoplan mapping tools and the outputs from the Geoplan Territory and Route Optimisers were used to feed into the operational implementation of the process.

Once the end-to-end process had been proven in the UK, the same tools and approach were rolled out across a number of other European markets, ensuring a quick, easy and consistent approach was taken for the whole group.

Developed specifically for Hermes, the system provided:

The Benefits

  • Reduced the combined network size across the two companies from c.250 Depot locations to c.100.
  • Quantified the impact of numerous strategic options.
  • Saved time in planning process – able to assess more options that previous process would have allowed.
  • Consistent approach and tools used across all European markets.
  • Easy to use and understand the outputs.

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