Case Study: TNT Business Solutions achieves $260 million in cost savings with AIMMS-based optimization

TNT achieves $260 million in cost savings with AIMMS-based optimization

TNT, one of the world’s largest express delivery companies (about 1 million consignments daily and €6.7 billion revenue in 2014), faced the challenge of managing complex global logistics—over 4.7 million items weekly to 200+ countries—without mathematical decision support. Competitive pressures and the 2008 financial crisis made a fact-based, optimization-driven approach essential to meet strict service requirements and reduce costs.

TNT adopted Operations Research with AIMMS, ORTEC and academic experts, using AIMMS-based models to analyze local and global data; an initial analysis delivered a 6.4% cost reduction and spawned the two-year Global Optimization (GO) Program to train managers. The program optimized parcel and freight flows and the wider distribution network, generating $260 million in savings, cutting 283,000 metric tons of CO2, training 200+ managers in strategic optimization, and earning the Franz Edelman Award in 2012.

TNT Business Solutions

Chris Goossens

Managing Director Global Networks and Operations