Coca-Cola Enterprises Optimizes Vehicle Routes for Efficientpr Oductdelivery
informs
Vol. 38, No. 1, January–February 2008, pp. 40–50 issn 0092-2102 eissn 1526-551X 08 3801 0040
®
doi 10.1287/inte.1070.0331 © 2008 INFORMS
THE FRANZ EDELMAN AWARD
Achievement in Operations Research
Coca-Cola Enterprises Optimizes Vehicle Routes for Efficient Product Delivery
ORTEC, 2800 AL Gouda, The Netherlands and Faculty of Economics and Business Administration, Tilburg University, 5000 LE Tilburg, The Netherlands, g.kant@uvt.nl Coca-Cola Enterprises Inc., Atlanta, Georgia, mjacks@na.cokecce.com ORTEC USA, Six Concourse Parkway, Atlanta, Georgia 30328, caantjes@ortec.com
Goos Kant
Michael Jacks
Corné Aantjes
In 2004 and 2005, Coca-Cola Enterprises (CCE)—the world’s largest bottler and distributor of Coca-Cola products—implemented ORTEC’s vehicle-routing software. Today, over 300 CCE dispatchers use this software daily to plan the routes of approximately 10,000 trucks. In addition to handling nonstandard constraints, the implementation is notable for its progressive transition from the prior business practice. CCE has realized an annual cost saving of $45 million and major improvements in customer service. This approach has been so successful that Coca-Cola has extended it beyond CCE to other Coca-Cola bottling companies and beer distributors. Key words: transportation scheduling; vehicle routing; distribution optimization.
C
oca-Cola Enterprises (CCE) is the world’s largest marketer, producer, and distributor of Coca-Cola Company products. These products extend beyond traditional carbonated soft drinks to beverages, e.g., still and sparkling waters, juices, isotonics, teas, and energy, milk-based, and coffee-based drinks. CCE distributes Coca-Cola brands, e.g., Coke, Dasani, Sprite, Barq’s, Fresca, Hi-C, Nestea, Powerade, and Minute Maid, and also beverage brands of several other companies. In 2005, CCE distributed two billion physical cases (containing 42 billion bottles and cans), representing 20 percent of the Coca-Cola
Vol. 38, No. 1, January–February 2008, pp. 40–50 issn 0092-2102 eissn 1526-551X 08 3801 0040
®
doi 10.1287/inte.1070.0331 © 2008 INFORMS
THE FRANZ EDELMAN AWARD
Achievement in Operations Research
Coca-Cola Enterprises Optimizes Vehicle Routes for Efficient Product Delivery
ORTEC, 2800 AL Gouda, The Netherlands and Faculty of Economics and Business Administration, Tilburg University, 5000 LE Tilburg, The Netherlands, g.kant@uvt.nl Coca-Cola Enterprises Inc., Atlanta, Georgia, mjacks@na.cokecce.com ORTEC USA, Six Concourse Parkway, Atlanta, Georgia 30328, caantjes@ortec.com
Goos Kant
Michael Jacks
Corné Aantjes
In 2004 and 2005, Coca-Cola Enterprises (CCE)—the world’s largest bottler and distributor of Coca-Cola products—implemented ORTEC’s vehicle-routing software. Today, over 300 CCE dispatchers use this software daily to plan the routes of approximately 10,000 trucks. In addition to handling nonstandard constraints, the implementation is notable for its progressive transition from the prior business practice. CCE has realized an annual cost saving of $45 million and major improvements in customer service. This approach has been so successful that Coca-Cola has extended it beyond CCE to other Coca-Cola bottling companies and beer distributors. Key words: transportation scheduling; vehicle routing; distribution optimization.
C
oca-Cola Enterprises (CCE) is the world’s largest marketer, producer, and distributor of Coca-Cola Company products. These products extend beyond traditional carbonated soft drinks to beverages, e.g., still and sparkling waters, juices, isotonics, teas, and energy, milk-based, and coffee-based drinks. CCE distributes Coca-Cola brands, e.g., Coke, Dasani, Sprite, Barq’s, Fresca, Hi-C, Nestea, Powerade, and Minute Maid, and also beverage brands of several other companies. In 2005, CCE distributed two billion physical cases (containing 42 billion bottles and cans), representing 20 percent of the Coca-Cola
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