Intelligent Fleet Logistics – Maximising Profit

February 10th, 2015

The Challenge

  •  Many industries deliver goods to customers without a clear picture of the variable transport costs attributable to each customer
  • The transportation component can represent 25%-40% of the cost of goods sold
  • Integrating an accurate measurement of Gross Profit After Distribution is an essential part of supply chain and distribution management
  • Data61’s cost to serve tool improves each customer’s profitability to maximise total Gross Profit After Distribution.


maximising profil diagram

Data61’s Approach

Data61 developed a new cost-to-serve analysis that accurately attributes profit to individual customers within complex distribution networks.

Cost To Serve uses advanced route optimisation algorithms to maximise gross profit after distribution:

  • Determines the most profitable direct delivery customer set
  • Identifies the optimal customer mix
  • Optimises fleet configuration
  • Models revenues, fixed- and variable- costs
  • Calculates street level routes
  • Adheres to all business constraints.


Data61’s Optimised Cost to Serve

Maximises overall profit by:

  • Considering variations in: price, delivery frequency, time-windows, service duration and customer base selection
  • determining individual profitability by modeling the incremental variable distribution costs



  •  More efficient use of existing assets is key to saving cost and reducing emissions
  • Fewer journeys lead to less congestion
  • Data61’s optimisation algorithms extend the scope and accuracy of planning across the supply chain.


Download the Intelligent Fleet Logistics – Maximising Profit brochure.