Maximize Delivery Efficiency and Save Costs through Intelligent Territory Optimization


Mar 22, 2023

We are thrilled to announce the latest addition to our product suite – the Territory Optimization Module. This module is designed to make your parcel delivery operations more efficient and cost-effective.

To gain a deeper understanding of Territory Optimization, it’s essential to introduce the concept of territory partitions or Polygons. A Geographical area, which constitutes the complete territory, is created into smaller, exhaustive, and contiguous partitions or Polygons.

Fig 1: Example showing the final view once polygons are defined
Fig 2: Example showing the final view once polygons are defined

Once the polygons are defined, our intelligent model runs a simulation based on parameters like company cost structures, driver constraints, delivery time constraints, dispatch location details, and historical demand patterns. The simulated data finally generates the following outputs:

  1. Optimal number of riders needed to fulfill deliveries
  2. Assignment of delivery tasks among FTE drivers
  3. Distribution of part-time contractors needed to fulfill deliveries
Fig 3: Results of the data simulation. Graphical results are displayed for different chart types/KPI

The benefits of Shipsy’s Territory Optimization Module are many. Firstly, it enables you to scientifically plan your manpower for a given period. By using demand patterns to generate optimal delivery schedules for FTE drivers, you can reduce costs and increase productivity.

Secondly, through our optimization models that maximize the total shipment deliveries across the delivery territory, you can ensure equitable work distribution & a stable workload for your drivers.

Thirdly, our module helps you identify the right mix of full-time and freelance fleet. By optimizing the right mix of FTE drivers and freelance workforce needed, you can ensure operational stability even through periods of volatile delivery demands.

Finally, our module helps you reduce workload deviation among couriers. By adapting to seasonal and volatile parcel volumes while maintaining your service quality, you can ensure that your customers receive the highest quality of service at all times.

In summary, the Territory Optimization Module will help you streamline your parcel delivery operations, increase your efficiency, and save costs. We hope that you will find this new addition to our product suite helpful. If you have any questions or feedback, please do not hesitate to reach out to our support team.

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