Introduction
In these uncertain times, businesses have been forced to adapt rapidly to the changing landscape. At It From Bit (IFB), we pride ourselves on being able to offer quick solutions in the face of unforeseen challenges. In the midst of the COVID-19 pandemic, we were approached by a major retail company from CEE region with a problem that needed an immediate solution.

Problem
Our client has faced unprecedented challenges to keep up with the sudden changes brought on by the outbreak. The retailer’s supply chain involved complex interactions between three systems: warehouse workforce scheduling, delivery scheduling, and routing system. Their non-digital delivery scheduling system, which had previously worked well in stable times, was no longer as effective in the face of the constantly changing policies and restrictions. The company was finding it increasingly difficult to react quickly to the changing circumstances, and this was having a knock-on effect on employees, logistics, and customers alike.

Solution
Recognizing the urgent need for a new approach, in close collaboration with the client’s domain experts, we quickly got to work devising a top-down discrete optimization model that would streamline operations and enable better reactivity to changes in circumstances. We focused on finding repetitive weekly delivery patterns that would balance the daily warehouse and transportation utilization, with a special emphasis on reducing inventory write-offs due to the aging of fresh food. Our proactive-reactive approach ensured that we provided an appropriate Service Level at the store level, which guaranteed the freshness and quality of ultra-fresh food. At the operations level, it kept the supply chain aligned through a baseline delivery pattern schedule that triggered re-optimization in case of degradation. The new automated delivery scheduling system brought a 3% improvement in the performance measure and a marked improvement in speed in adjusting to the changes, such as those imposed by lockdowns.

A discrete optimization model
Outcome
Within two months, our team successfully optimized weekly delivery patterns to the client’s network of hundreds of shops in CEE region. At the same time, we balanced the utilization of warehouses and transportation, reducing the peak and the total number of deliveries by pairing them together from different warehouses, when possible. Our system is operational since May 2020, and we have seen measurable benefits, including a 3% improvement in the objective function compared to the previous approach.

Conclusion
In summary, IFB’s instant consulting services played a crucial role in helping the retail company navigate the challenges brought on by the pandemic. The swift and effective deployment of the new delivery scheduling system allowed the client to maintain a streamlined supply chain and stay ahead of the changing policies and demand patterns. Moreover, IFB’s focus on proactive-reactive approaches and optimization helped the client to achieve better results while reducing waste and inefficiencies.