Case Study: TNT achieves $260 million in cost savings with AIMMS optimization

TNT saves $260 million with AIMMS

TNT (now FedEx), one of the world's largest express delivery companies, faced competitive challenges and a complex logistical operation that lacked mathematical support for decision-making. The need for a fact-based approach was amplified by the 2008 financial crisis, leading them to seek a solution with vendor AIMMS.

An AIMMS-based solution was implemented, beginning with basic data analysis that led to an immediate cost reduction. This success expanded into the TNT Express Global Optimization Program, which used AIMMS models to optimize parcel and freight flows. The results achieved with AIMMS included $260 million in cost savings, a reduction of 283,000 metric tons in carbon emissions, and over 200 managers trained in optimization techniques.