About the Company
Fashnear Technologies Private Limited is an Indian e-commerce business that connects suppliers and end consumers through its e-commerce platform.
The Challenge
The client faced a significant challenge in optimizing its first-mile and last-mile delivery operations. They wanted to develop a location intelligence-based solution to enhance efficiency and reduce delivery costs. The primary challenge involved managing a dataset of location points within a city and eliminating irrelevant location points beyond geographic bounds. Subsequently, the goal was to geocode and cluster the remaining location points based on specific constraints, including area coverage, maximum and minimum volume, and number of touchpoints in each cluster.
The Solution
Meesho partnered with Persistent to devise and implement a simulation-based optimization approach. For the first mile, a multi-simulation approach was adopted. Various simulations, each with different clusters covering all orders, were created. The scheduling algorithm ran for each cluster, calculating total travel kilometers, travel time, and overall cost. The most optimized simulation was then identified, enhancing the efficiency of Meesho’s first-mile delivery.
For the last mile, Persistent proposed a simulation-based optimization approach that involved clustering delivery locations, determining the optimal number of hubs, and scheduling deliveries to minimize the total cost of delivery. This strategic approach is designed to streamline Meesho’s last-mile delivery process, ensuring cost-effectiveness and operational efficiency.
In addition to the simulation-based optimization approach for first and last-mile delivery, the solution incorporated advanced geocoding techniques to precisely identify and filter relevant location points. Leveraging cutting-edge technology, Persistent’s solution ensured the removal of any out-of-bound points, contributing to the accuracy of the clustering process. This fine-tuned geocoding not only enhanced the overall precision of the location intelligence platform but also played a crucial role in optimizing route planning and resource allocation. The amalgamation of simulation-based optimization and refined geocoding techniques showcased Persistent’s prowess in leveraging the latest technology to deliver a seamless and cost-effective delivery experience.
The Outcome
The solution, built on a location intelligence platform, proved transformative for Meesho. The platform, tailored to the client’s needs, enabled the configuration of applicable modules for production roll-out. Offering out-of-the-box features for Sales Management, Services Management, Collections, and Dista Insights (third-party), the platform also provides flexibility to customize the base product to suit business needs. Meesho can fine-tune business processes, enable custom processing of specific events and datasets, develop custom screens or sets and enhance their functionality.
The Indian e-commerce giant successfully tackled its first-mile and last-mile delivery challenges through a simulation-based optimization approach. This innovative solution has been instrumental in consistently reducing Meesho’s total delivery costs, showcasing the effectiveness of a strategic location intelligence platform in optimizing e-commerce logistics.
