Case Study: GXO achieves 38% last-mile cost reduction with Optilogic

GXO cuts last-mile costs 38% with Optilogic

GXO, a major logistics provider for a UK retail operation, faced a significant challenge in managing its last-mile delivery network. With an annual cost of £42.0 million, the network was inefficient, characterized by a large fleet of trucks, strict delivery windows, and vehicles that were not properly matched to the size of deliveries. The company partnered with supply chain optimization vendor Optilogic to build a digital twin of its operations to identify cost-saving opportunities without impacting service.

Using Optilogic's digital twin technology, the team modeled and tested various operational levers, including optimized routing, reduced delivery frequency, and depot network redesign. The solution implemented was a comprehensive transformation program that stacked these levers, resulting in annual savings of £15.9 million, a 38% reduction in cost. The program also achieved a 47% reduction in driving distance and required 39 fewer trucks at peak, dramatically increasing network efficiency for Optilogic's customer.

GXO