Mastering volume fluctuations in a private mail service
An alternative mail service with a multi-level logistics network was faced with strongly fluctuating shipment volumes and rising unit costs. FIEGE Consulting optimized all process steps — from area analysis to dynamic delivery planning — and achieved demonstrably significant cost effects.
Customer's initial situation
The private mail service processes widely varying volumes of shipments on a daily basis. With minimum wage and energy costs constantly increasing at the same time, all process steps — from letter collection to sorting to delivery — must work together flexibly and efficiently in order to achieve consistently economically satisfactory operating results.
Strongly fluctuating shipment quantities
Increasing costs due to wage & energy price increases
High demands on delivery quality & brand perception
The objectives for these challenges
- Reduce unit costs — despite fluctuating quantities.
- Ensuring delivery quality — through clearly defined districts & corridors.
- Increase operational flexibility — Quickly adapt processes to changes in volume.
Our Approach
- Data & process analysis: Recording and visualization of all process steps create full transparency about cost drivers.
- Optimizing recovery trips: Through ABC customer analysis and precise time window planning, collection trips are optimized in such a way that up to 25% costs are saved in collection logistics.
- Analysis of time processes: Recording real lead times in collection, picking and delivery reveals hidden buffer times.
- Site analysis: The evaluation of all mailboxes, service points and sorting and depot locations shortens routes and improves regional coverage.
- Transport & delivery network: Thanks to dynamic route-to-depot allocation and adapted depot structures, the delivery network achieves a cost effect of up to 15%.
- Dynamic delivery planning: Simulations of various quantity scenarios enable dynamic delivery planning with savings of up to 8% in delivery logistics.
"Volumes that are peaking today and collapsing tomorrow can only be managed with data-driven scenarios — that is exactly what we have made our customer's network fit for."
Outcome of our collaboration
- Up to 25% lower costs in collection logistics — optimised pick-up routes and precisely coordinated time windows reduce mileage and personnel costs.
- Savings of up to 8% in delivery logistics — newly tailored delivery areas and improved routes shorten routes without impairing service quality.
- Up to 15% lower costs in the delivery network — dynamic depot allocation avoids unnecessary reloading routes and increases vehicle utilization.
In addition, high operational flexibility — the scenario model allows tours and resource use to be adapted to volume changes on a daily basis.
Contact us — we are looking forward to talking to you!
Contact us — we will be happy to guide you on your way to efficient transport and last-mile logistics
Contact us — we will be happy to guide you on your way to an optimal delivery structure!
