--- title: "Delivery From Sales Premises: Optimising the Distribution Solution" description: The following article is based on a real study carried out for businesses with country wide sales premises. However, the principles apply to any business with multiple distribution centres than need rationalising. image: https://www.lpcinternational.co.uk/hubfs/Local%20Delivery%20from%20Sales%20Premises.jpg --- - [01285 704470](tel:01285704470) - [jtindley@lpcinternational.com](mailto:jtindley@lpcinternational.com) [![LPC logo](https://www.lpcinternational.co.uk/hs-fs/hubfs/LPC%20logo.webp?width=473&height=64&name=LPC%20logo.webp "LPC logo")](https://www.lpcinternational.co.uk/) [![LPC logo](https://www.lpcinternational.co.uk/hs-fs/hubfs/LPC%20logo.webp?width=473&height=64&name=LPC%20logo.webp "LPC logo")](https://www.lpcinternational.co.uk/) - [Home](https://www.lpcinternational.co.uk) - About - [Why LPC](https://www.lpcinternational.co.uk/why-lpc) - [Clients & Business Sectors](https://www.lpcinternational.co.uk/clients-and-business-sectors) - [The Team](https://www.lpcinternational.co.uk/the-team) - [Expert Witness & Logistics Dispute Resolution](https://www.lpcinternational.co.uk/expert-witness) - 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[Warehouse Productivity Consultants](https://www.lpcinternational.co.uk/warehouse-productivity) - [Warehouse Modelling & Simulation](https://www.lpcinternational.co.uk/modelling-and-simulation) - Project Implementation - [Equipment Procurement](https://www.lpcinternational.co.uk/equipment) - [Equipment Procurement](https://www.lpcinternational.co.uk/procurement) - [Project Management Support](https://www.lpcinternational.co.uk/project-management) - Automation & Robotics - [Warehouse Automation & Robotics](https://www.lpcinternational.co.uk/automation-and-robotics) - [Is Warehouse Automation For You?](https://www.lpcinternational.co.uk/warehouse-automation-for-you) - Resources - [Case Studies](https://www.lpcinternational.co.uk/case-studies) - [Downloads](https://www.lpcinternational.co.uk/downloads) - [Blogs](https://www.lpcinternational.co.uk/blog) - [Storage Systems](https://www.lpcinternational.co.uk/equipment) [![Contact Us](https://no-cache.hubspot.com/cta/default/2191642/interactive-199423175003.png)](https://www.lpcinternational.co.uk/hs/cta/wi/redirect?encryptedPayload=AVxigLKfTOEigrJKvHVMxCRx8ACrcLcCLcXaMwtg%2Flr9sBe3tFJDv07zFRQ7Y3xqp%2B1bu%2BYIb01%2FVkEelkYtw%2FKGbdCSRF55Vo%2FVzkUN2B5V4Le88ZE5If0ctzZPWenGROUMLtJDiDgcpPjzzizBHW3%2BZ4E29GC7tBcdrim2sJT4SONHweAsIpfDQYU9YzT9uPl4%2BC16mrg7eY0PER4Ndx94KnPV&webInteractiveContentId=199423175003&portalId=2191642) [01285 704470](tel:01285704470) [jtindley@lpcinternational.com](mailto:jtindley@lpcinternational.com) [Supply Chain Strategy](https://www.lpcinternational.co.uk/blog/topic/supply-chain-strategy)[Logistics Planning](https://www.lpcinternational.co.uk/blog/topic/logistics-planning) [Transport Planning](https://www.lpcinternational.co.uk/blog/topic/transport-planning) # Local Delivery From Sales Premises – Optimising Your Distribution Solution by [Jason Tindley](https://www.lpcinternational.co.uk/blog/author/jason-tindley) 3 min read 2 Aug 2021, 15:04:00 ![Local Delivery from Sales Premises](https://www.lpcinternational.co.uk/hs-fs/hubfs/Local%20Delivery%20from%20Sales%20Premises.jpg?width=1920&name=Local%20Delivery%20from%20Sales%20Premises.jpg) The following article is based on a real study carried out for businesses with country wide sales premises. However, the principles apply to any business with [multiple distribution centres](https://www.lpcinternational.co.uk/4-signs-you-need-to-invest-in-a-new-distribution-warehouse-layout-and-what-to-do-about-it) than need rationalising. [![Still Have Questions? Speak To Our Team Today!](https://no-cache.hubspot.com/cta/default/2191642/3295e64c-22c9-4b4d-8e71-1575c750709a.png)](https://cta-redirect.hubspot.com/cta/redirect/2191642/3295e64c-22c9-4b4d-8e71-1575c750709a) ## Target Audience Any business that can benefit from a [rationalisation of its distribution point](https://www.lpcinternational.co.uk/network-design/) such as those that have merged with or acquired a competitor or have allowed their distribution operation to grow unchecked. ## Benefits - Reduced delivery costs. - Reduced property costs. - Reduced stock holding costs - Reduced trunking costs - Increased operational simplicity ## In Short Holding a [local delivery fleet](https://www.lpcinternational.co.uk/understanding-supply-chain-management) at each sales outlet may not be the most efficient and cost effective local distribution solution. This study determined: - the client’s optimum number of sales branches to deliver from on behalf of all their branches, - the identity of the branches from which deliveries should dispatched - the territory each delivery branch should cover and - the required fleet size and profile at each delivery branch. ## Methodology ### The Base Case The client had recently acquired a rival, leading to multiple stores in certain areas and overlapping delivery territories . Figure 1 illustrates the existing areas covered by each of the 50 branches. A routing and scheduling model was created with historical delivery data to accurately represent the existing operation. The fleet, drivers and mileage were costed to determine a Base Case cost. ![the base case](https://www.lpcinternational.co.uk/hs-fs/hubfs/the%20base%20case.png?width=1181&name=the%20base%20case.png) ### The Starting Point The starting point was to see what could be done in the short term. Figure 1 above showed considerable overlap suggesting an opportunity with just redefining delivery territories. The potential savings relative to the base case from optimisation of delivery boundaries was 5%. ![the starting point](https://www.lpcinternational.co.uk/hs-fs/hubfs/the%20starting%20point.png?width=1183&name=the%20starting%20point.png) ### Ten Branch Solution – The Minimum Number of Locations Possible There were two constraints in this study: - No branch could exceed 127 tonnes per day throughput. - All customers had to be reachable within two hours’ driving time. Figure 3 illustrates the minimum number and location of branches from which all orders could be reached within two hours. The saving in transport costs relative to the base case was 5.5% However, some branches would exceed the 127 tonnes per day constraint with this arrangement so more delivery branches would be required to meet this constraint. ![ten branch solution](https://www.lpcinternational.co.uk/hs-fs/hubfs/ten%20branch%20solution.png?width=1156&name=ten%20branch%20solution.png) ## 15 Branch Solution A 15 branch solution is illustrated in Figure 4. All branches in this solution comply with the 127 tonnes per day constraint. The expected saving relative to the base case increased to 7%. ![15 branch solution](https://www.lpcinternational.co.uk/hs-fs/hubfs/15%20branch%20solution.png?width=1164&name=15%20branch%20solution.png) ## 20 Branch Solution A 20 branch solution is illustrated in Figure 5. The expected saving relative to the base case increased to 11%. ## ![20 branch solution](https://www.lpcinternational.co.uk/hs-fs/hubfs/20%20branch%20solution.png?width=1173&name=20%20branch%20solution.png) ## 30 Branch Solution A 30 branch solution is illustrated in Figure 6. The expected saving relative to the base case was to 9%, a fall from the 20 branch solution indicating that the optimum number of branches to deliver from has been exceeded. ![30 branch solution](https://www.lpcinternational.co.uk/hs-fs/hubfs/30%20branch%20solution.png?width=1154&name=30%20branch%20solution.png) ### The Optimum Solution The optimum solution included 23 specific branches from which to deliver on behalf of all 50 branches. The potential saving of this solution is 12% relative to the base case. Figure 7 below compares some of the solutions tested relative to the base case. ![graph](https://www.lpcinternational.co.uk/hs-fs/hubfs/graph.png?width=599&name=graph.png) Figure 7. [![Transport Planning & Optimisation](https://no-cache.hubspot.com/cta/default/2191642/e5cd118c-8e9b-4de7-893e-508033ef2777.png)](https://cta-redirect.hubspot.com/cta/redirect/2191642/e5cd118c-8e9b-4de7-893e-508033ef2777) *Image source: [Unsplash](https://unsplash.com/photos/kGoPcmpPT7c)* Share this [Share on X](https://x.com/intent/post?url=https://www.lpcinternational.co.uk/blog/local-delivery-from-sales-premises-optimising-your-distribution-solution&text=Delivery+From+Sales+Premises%3A+Optimising+the+Distribution+Solution) [Share on Facebook](https://www.facebook.com/sharer/sharer.php?u=https://www.lpcinternational.co.uk/blog/local-delivery-from-sales-premises-optimising-your-distribution-solution&t=Delivery+From+Sales+Premises%3A+Optimising+the+Distribution+Solution) [Share on LinkedIn](https://www.linkedin.com/shareArticle?mini=true&url=https://www.lpcinternational.co.uk/blog/local-delivery-from-sales-premises-optimising-your-distribution-solution&t=Delivery+From+Sales+Premises%3A+Optimising+the+Distribution+Solution) Previous story [← 5 Essential Features To Look For In a WMS Platform](https://www.lpcinternational.co.uk/blog/5-essential-features-to-look-for-in-a-wms-platform) Next story [Own Fleet vs. Carrier – Optimising Your Distribution Solution →](https://www.lpcinternational.co.uk/blog/own-fleet-vs.-carrier-optimising-your-distribution-solution) ## You May Also Like These Related Stories [Own Fleet vs. Carrier – Optimising Your Distribution Solution](https://www.lpcinternational.co.uk/blog/own-fleet-vs.-carrier-optimising-your-distribution-solution) ![Own Fleet vs. Carrier – Optimising Your Distribution Solution](https://www.lpcinternational.co.uk/hubfs/Own%20Fleet%20vs.%20Carrier.jpg) [Supply Chain Strategy](https://www.lpcinternational.co.uk/blog/topic/supply-chain-strategy) ### Own Fleet vs. Carrier – Optimising Your Distribution Solution 1 Sept 2021, 15:49:00 4 min read [The Keys To a Better Relationship With Your Logistics Partners](https://www.lpcinternational.co.uk/blog/the-keys-to-a-better-relationship-with-your-logistics-partners) ![](https://www.lpcinternational.co.uk/hubfs/LOGISTICS-PLANNING.jpg) [Logistics Planning](https://www.lpcinternational.co.uk/blog/topic/logistics-planning) ### The Keys To a Better Relationship With Your Logistics Partners 27 Jan 2022, 12:49:12 2 min read [The Importance Of Logistics & Warehousing In A Business](https://www.lpcinternational.co.uk/blog/importance-of-logistics-warehousing-in-a-business) ![The Importance Of Logistics & Warehousing In A Business](https://www.lpcinternational.co.uk/hubfs/The%20Importance%20Of%20Logistics%20%26%20Warehousing%20In%20A%20Business.jpg) [Warehouse Management System](https://www.lpcinternational.co.uk/blog/topic/warehouse-management-system) ### The Importance Of Logistics & Warehousing In A Business 11 Apr 2019, 10:00:00 2 min read ### Get Email Notifications ### **Logistics Planning Consultants** VAT Number: 667-0474-17 Company Number: 03184658 [Join us on Slack](https://www.facebook.com/LPC-International-1598261453798554) [Browse our GitHub projects](https://www.linkedin.com/company/logistics-planning-consultants-international) [Browse our GitHub projects](https://www.youtube.com/channel/UCuWye1wWnhhl3hxTqXYxyQw) About - 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