Topics covered in the slides: 1. Introducing sustainability and the impact on business 2. Why Route Optimization is important for Sustainable Delivery 3. Examples of Route Optimization strategies to support Sustainable Delivery Implementation 4. How using the right Route Optimization software can work for global companies starting from today

1. Sustainable Delivery With The
Right Route Planning Strategies
Fanny See
COO & Co-founder
Detrack Systems

2. Rising Demand For Urban Freight
202068% of the world’s population will live in
urban areas
2025the “City600” will be producing a GDP of $30
trillion, driving nearly 65% of global growth
2050Urban freight deliveries are expected to grow
40%
References
1.https://www.un.org/development/desa/en/news/population/2018-revision-of-world-urbanization-prospects.html
2. http://www.delivered.dhl.com/en/articles/2018/09/the-rise-of-the-urban-consumer.html
3. https://www.mhi.org/publications/report

3. Urban Freight Impact
On Infrastructure & The Environment
Pressure On Infrastructure
Governments shortfall to upkeep and develop cities’
infrastructure at $1 trillion (WEF)
Traffic Congestions Eats Into GDP
Between Britain, Germany and the United States, traffic
congestion costs totalled $461bn
Air Pollution Increasing
Estimated 92 percent of the world’s population lives in
places where air pollution levels exceed limits (WHO)
Governments Forced To Act
Low Carbon Emission Zones (LEZs) References
1. https://newcities.org/blog-how-urbanization-is-escalating-demands-for-urban-infrastructure-funding-and-how-cities-and-investors-are-responding/)
2. https://www.economist.com/graphic-detail/2018/02/28/the-hidden-cost-of-congestion
3. https://www.healthaffairs.org/do/10.1377/hblog20181004.768360/full/

4. World Industry Leaders Make
A Stand For Sustainability
Industry Leaders Lead Industry Sustainability
Facebook, Microsoft, IBM, Coca Cola officiated
statements on sustainability
150 Fashion Brands Committed To Industry
Sustainability
Brands including Chanel, Prada, Gucci, H&M have
joined Emmanuel Macron’s “Fashion Pact” to make
the fashion industry more sustainable
One key objective is to achieve zero greenhouse
gas emissions by 2050
Reference
1. https://www.vogue.com/article/fashion-pact-sustainability-g7-summit-emmanuel-macron

5. Nestle Aims To
Eliminate Green
House Gas Emissions
Across Its Global
Supply Chain By 2050
Reference
https://fortune.com/2019/09/12/nestle-net-zero-emissions-greenhouse-gases/

6. Sustainability
In The Last
Mile
Global Business Sustainability Movement Exerts
Strong Pressure On Suppliers
Third Party Logistics Companies (3PLs) Handles
High Proportion Of Deliveries
Sustainable Delivery Strategies Often Results In
Cost Savings
Higher Productivity; Deliver More With Less,
Lower Fuel Cost, Reduce Empty Miles
3PLs In The Best Position To Create The Largest
Impact In Implementing Sustainable Delivery

7. Looking Into Sustainable
Delivery Strategies

8. Route
Optimization
Top Strategy On 3PLs’ Minds
Cut Carbon Footprint; Deliver More With
Less
Route Planning Is Manual And Very Time
Consuming
3PLs Receive Delivery Manifests Late
Plan Routes by Splitting Into Zones

9. Hard Drawn Zones Route Planning

10. Hard Drawn Zones Route Planning Limitation
Results Of Planning Using Hard Zones, Stops Unserved Marked In Red

11. A Better Strategy Using Dynamic Clustering

12. Zero Carbon
Emission
Delivery;
Walkers &
Electric
Scooters
Using Walkers & Electric Scooters
Zero Carbon Emission
Readily Available At Low Cost
Does Not Contribute To Traffic Congestion
Alleviate Stress On Roads

13. Planning Routes
For Walkers &
Electric Scooters
Walkers - Average Speed Of 4Km/Hr
Electric Scooters - Average Speed Of
25Km/Hr
Limited Load Capacity - About 31 Litres
Limited Travel Distance - Walkers About
1km Radius, Electric Scooters About 3km
Radius

14. Sample Route Plan For Walkers & Electric Scooters

15. Electric
Delivery
Trucks
Zero Carbon Emission
Range of about 100km On A Full Charge
In Line With The Industry Movement For Zero
Greenhouse Gas Emissions
IKEA’s Sustainability & Electric Vision – All Last
Mile Deliveries Will Be Zero Emission By 2025

16. Route
Planning
Limitations for
An Electric
Truck Fleet
Need To Recharge Daily
Required To Limit Range Per Run
Limited Recharging Infrastructure
Required To Reach Designated
Charging Station By A Specific Time

17. Sample Route Plan For An Electric Truck Using Directed Depot To Depot Routing

18. Low Emission
Zones (LEZ)
A low-emission zone (LEZ) is a defined area
where access by some polluting vehicles is
restricted or deterred with the aim of improving
the air quality. This may favour vehicles such as
(certain) alternative fuel vehicles, hybrid electric
vehicles, or zero-emission vehicles such as all-
electric vehicles.
https://en.wikipedia.org/wiki/Low-emission_zone

19. Low Emission
Zones (LEZ)
More Governments Are Marking Out Low
Emission Zones
About 250 Low Emission Zones (LEZ) In
Europe
Hong Kong Government Designated Three
Major Junctions, Central, Causeway Bay and
Mong Kok As LEZ For Franchised Buses

20. Route
Planning
Challenges
For Areas
With LEZs
Planning For A Mixed Fleet With
Low Carbon Emission Vehicles &
Fuel Powered Vehicles
Challenging To Plan Routes That
Fully Utilize Low Emission
Vehicles Who Can Serve Stops
Both Within & Outside LEZs

21. Sample Route Plan For Mixed Fleet Covering An Area With LEZ

22. Choosing The
Right Route
Planning
Strategy For
Sustainable
Delivery
Factors Affecting The Type Of Route Planning
Strategy
Presence Of Low Emission Zones
Traffic Congestion
Topography Restrictions
Maturity In The Use Of Green Mobility Options

23. Limitations of
Existing Route
Planning Tools
Vehicle Route Planning Is An NP-Hard Problem
(https://en.wikipedia.org/wiki/Vehicle_routing_problem)
Many Route Planning Solutions Take A Long
Time – Usually Hours For A Few Hundred
Stops
Not Every Solution Can Tailor To All The
Unique Constraints Required
These Constraints Need To Work Well
Together In Order To Produce The Desired
Results

24. ElasticRoute
• Unique Hybrid Heuristics Algorithm
• Super Speed
• Scalable
• Versatile
• Global Ready
One Solution That Can Implement All
The Above Strategies Supporting
Sustainable Delivery

25. ElasticRoute Benchmark
https://www.elasticroute.com

26. Ready To Start?
Visit Us At Booth F5
Download our white paper
Hybrid Heuristics For High Speed Route Optimization

27. Thank You!
L e t ’s c o n n e c t : ww w. l i n k e d i n . c o m / i n / f a n n y s e e