Business Cases

 

Advanced last mile logistics, waste collector

A subsidiary of one of the 35 largest companies in Spain wanted to optimize their last mile logistics operations (waste oil collection from restaurants and other food outlets). Aware that most of their operational costs were related to the collection and delivery of the waste to their depots throughout Spain, they approached Innitium to improve throughput per vehicle. 

“We needed to introduce new ways of designing our operations. Not being able to compete in price or product, our innovation is focused on the backend”

[Confidential],

Owner

The challenge

A subsidiary of an IBEX 35 corporation specializing in door to door waste collection wanted to reduce per ton cost of their last mile and improve the quality of service to their clients.

The data

2+ years of client collection data, including pickup point geolocation, quantity, route. Vehicle and depot design parameters. Cost structure

The model

We introduced linear optimization, permanently updating  and dispatching throughout the day the best routes.

The outcome

The client was able to increase the number of stops by 39% (from 16.5 a day to 23), while fully complying with the time windows of clients and lowering the urgent collection requests.

Innitium is currently working on a reinforcement learning model to help the client optimize the daily target clients.

HVAC maintenance, Spain

We were approached be the leading heating, ventilation and air conditioning service provider, operating a fleet performing hundreds of services per day.

“We knew our technicians had idle time and that there was ample potential for more services per day. Now we are able not only to monitor but also permanently re-evaluate our plan, ensuring both the quality of customer service and high utilization rates of our technicians”

The challenge

The client wanted to improve customer service quality, increase the utilization of technicians (reduce idle time) and red8ce fleet costs.

The data

10+ years of client service data, a combination of urgent services and planned maintenance.

The model

We introduced dynamic routing, able to respond to the intra-day changes due to traffic, variable service time, availability of technicians and new orders.

The outcome

The project is currently in deployment stage. Simulation have shown the potential of increasing technician utilization by 24% and reducing millage by 17%. 

[Confidential],

Ops Manager

 
 

Major Technical University, USA

Recognized around the world as the leading technological institute, a recent study estimates that as of 2014, living alumni of this university have launched more than 30,000 active companies, creating 4.6 million jobs and generating roughly $1.9 trillion in annual revenue. As part of their System Dynamics research PhD group, we studied the dynamics around corporate venture capital investment.

“The most important outcome was the debate and subsequent emergence of the dynamics that explained the seemingly contradictory effects of corporate venture capital investment on the resilience of the corporation”

The challenge

To explain how the investment in corporate venture capital (CVC) impacts the business dynamics of a corporation, particularly how it affects the response of corporations to shocks

The data

Performance of successful and unsuccessful transitions of corporations facing environmental shocks or technological discontinuities

The model

We produced a system dynamics model able to capture resource allocation decisions to short term and long term performance, the build up of technological capability stocks and variable levels of corporate venture capital investment.

The outcome

The simulations captured the impact of policies to different competitive scenarios and the management tradeoffs assigning capital to CVC.

[Confidential],

Researcher

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