Dynamic Route Optimization in Last-Mile Delivery Using Predictive Analytics: A Case Study of E-commerce in the U.S. (Published)
The last-mile delivery problem is one of the most complex and resource-intensive aspects of modern logistics, especially within the growing e-commerce sector. As online shopping continues to expand, companies are under immense pressure to deliver goods more quickly, efficiently, and at lower costs, all while meeting the demands of increasingly time-sensitive customers. This has created a need for innovative solutions that can tackle challenges related to dynamic traffic patterns, fluctuating customer preferences, and operational constraints such as vehicle capacities and delivery windows. In response to these challenges, this paper explores the application of predictive analytics as a tool for optimizing last-mile delivery routes in real-time.The study begins by identifying the core challenges inherent in last-mile logistics, particularly in the U.S. e-commerce landscape, where the cost of last-mile delivery can represent up to 53% of total shipping costs. With traffic congestion, unpredictable customer availability, and delivery time constraints posing significant hurdles, conventional static route planning models often fall short. In this paper, predictive analytics is proposed as a solution to these challenges, utilizing real-time data to inform more efficient routing decisions. By processing vast amounts of real-time traffic data, customer preferences, and delivery constraints, predictive models can offer a more flexible and responsive approach to last-mile delivery.The research then presents a comprehensive literature review of existing route optimization methods, such as the traditional Vehicle Routing Problem (VRP) and its extensions, including VRP with Time Windows (VRPTW), Dynamic VRP (DVRP), and Capacitated VRP (CVRP). While these models have proven useful, their limitations are exposed when faced with real-time operational complexities in the e-commerce sector. Therefore, this study introduces an advanced dynamic routing model that integrates machine learning algorithms—such as decision trees and neural networks—with traditional VRP frameworks. These machine learning models, trained on historical data, are capable of predicting future traffic patterns, customer behavior, and delivery time windows.A case study is conducted using data from U.S.-based e-commerce companies to demonstrate the practical application of predictive analytics in optimizing last-mile delivery. The case study outlines how predictive models are used to dynamically adjust delivery routes based on real-time conditions, leading to significant improvements in efficiency, cost savings, and customer satisfaction. Key performance indicators such as delivery times, fuel consumption, and vehicle utilization are examined before and after the implementation of the predictive models, with the results showing a reduction in delivery time by 20% and fuel costs by 15%, alongside improved on-time delivery rates.The paper concludes by presenting the proposed dynamic route optimization model as a solution that combines the flexibility and responsiveness of predictive analytics with the robust framework of traditional VRP models. Through the integration of machine learning, real-time data processing, and dynamic routing, the model is shown to significantly improve last-mile delivery efficiency. This study’s findings highlight the potential for predictive analytics to revolutionize the logistics industry, particularly in the high-demand e-commerce sector, where quick and reliable delivery is paramount. The research suggests that as e-commerce continues to grow, predictive analytics will play an increasingly critical role in ensuring that last-mile delivery is both cost-effective and responsive to the evolving needs of consumers.
Keywords: E-Commerce, U.S, dynamic route, last-mile delivery, optimization, predictive analytics
Container Terminal Yard Optimisation: A Case In Turkey (Published)
Due to the ever-changing nature of container terminals, fluctuations in storage capacity, and updates to vessel loading lists, the container yard can often become a hindrance to efficient terminal operations. One specific bottleneck frequently encountered in the stacking yard is referred to as yard clash. This phenomenon results in longer loading times for containers and is caused by the stacking of containers with the same loading time for different vessels within the same limited yard block and the limited availability of yard equipment. To address this issue, a binary integer optimization model was developed and implemented at a major container terminal in Turkey to minimize yard clashes. The results indicated a significant decrease of 92% in yard clashes during the loading of outbound containers, which in turn led to an increase of 2% in the total number of containers handled per vessel per hour.
Keywords: binary integer programming, container terminal, optimization, storage space allocation problem, yard clash