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ArcLogistics Route Helps Velocity Express Deliver Complex Logistics Solution

Velocity Express, Inc., is among the largest providers of integrated same-day delivery and logistics services in North America. Its delivery services include on demand, scheduled distribution, e-commerce delivery, supply chain management solutions, photo of Velocity Express trucks parked overnight at the loading dockair courier/next available flight, warehousing and fulfillment, on-site services, fleet replacement, and biomedical delivery. Velocity Express also offers customized third party logistics and consulting services.

Responding to bids for dedicated contract work in the logistics industry typically involves long hours to develop and price a feasible operational schedule. How many vehicles will be needed? How many pallets will be picked up at each stop? What sort of equipment should be used? When is the expected arrival time? How far is it? Can a single driver make it to and from the pickup point on the same day? The number of possible solutions to such a complex problem can be almost endless.

Organizations need to be competitive enough to win the Business, but still maintain a healthy profit margin. Velocity Express recently provided one of North America's largest retailers with a solution for dedicated logistics services to be performed in Southern California. The solution included pickup and delivery work from 63 locations with all vehicles operating out of Fontana, California.

Esri's ArcLogistics Route was the primary software tool used to generate accurate costs and efficient use of vehicles in the modeling process for the bid.

"We wanted to be sure we had all our costs covered in operating vehicles as well as allocating the most efficient vehicles to the problem," says Andrew Rogers, National Business analyst for Velocity Express.

ArcLogistics Route allowed Velocity Express to model many different scenarios in a very short period of time. Their customer helped speed the process by providing accurate information about shipping volumes, pick up and delivery times, addresses, and other pertinent Business data. ArcLogistics Route made this modeling easy. The functionality ArcLogistics Route screen shotof version 2 accommodated an expanded service area of 300 miles by 300 miles, which was a requirement for the job. "The ability to copy a routing folder to make edits and preserve existing work was very useful," says Rogers.

Left: ArcLogistics Route models many different scenarios in a short period of time.

The process was fairly simple and very accurate. Vehicles were set up with accurate volume capacity information, cost per mile and hour, and very generous starting times. This way ArcLogistics Route could predict the most optimal time to start a route and what sort of equipment should be used (e.g., a cargo van or a 24-foot truck).

Rogers found that another advantage ArcLogistics Route offered was the detailed reports the software could generate to justify the operating and pricing structure that Velocity Express quoted. Velocity Express was able to supply detailed information on anticipated mileage and routes, as well as equipment options. This demonstrated to their customer that Velocity Express was using sophisticated technology that could accurately support its routing solution, and not just "taking a stab" at compiling information.

Their customer was extremely happy with Velocity Express' routing solution and put the plan into action. Today, the solution includes 25 dedicated routes across Southern California, ranging from Fresno to San Diego, and east to Yuma, Arizona, and Las Vegas, Nevada.

For more information, contact Andrew Rogers, Velocity Express (tel.: 847-645-5546, e-mail: arogers@velocityexp.com).

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