Case Study: Aramex achieves 28% reduction in last-mile costs with Shipsy

Aramex Saves 28% in Last Mile Costs After Optimizing its Delivery Territories

Aramex, a leading global logistics and transportation provider based in the UAE, sought to reduce last-mile costs in Kuwait City and determine the optimal mix of full-time and part-time driver-partners while keeping an agile fleet to handle demand surges. Shipsy was engaged to optimize Aramex’s delivery territories using territory-partitioning and optimization algorithms.

Shipsy partitioned Aramex’s sales/delivery territories and produced output scenarios: (1) optimizing a fixed workforce — 125 full-time driver partners and 30,498 freelance deliveries; (2) keeping the fixed workforce same while reducing part-time drivers — 175 full-time and 15,689 freelance deliveries. These results enabled Aramex to either cut full-time driver partners by 50% or reduce freelance deliveries by 48%, achieving a 28% reduction in last-mile delivery costs while maximizing deliveries per driver and creating a more equitable task allocation.

Aramex