How Our Solution Enabled Jeronimo Martins to Expand Without Extra Investment
Jeronimo Martins, an international group based in Portugal with over 230 years in the food business, addresses the daily needs of millions across three countries through their commitment to quality food at competitive prices. Their largest venture, the Polish food store chain Biedronka, boasts 3,400 stores. Despite its current streamlined operations, Biedronka’s rapid growth in Poland presented significant logistical challenges.
Biedronka’s explosive growth demanded swift action from senior executives to leverage favourable market conditions and ensure sustained high incomes. To support this growth, new distribution centres needed to be opened and existing ones relocated. The challenges included capacity issues, vehicle and warehouse compatibility, and time window constraints for deliveries. We were tasked with solving the complex “Traveling Salesman Multiparameter Problem” with high accuracy.
The Solution
We began by thoroughly analyzing Biedronka’s logistical framework, including warehouse positions, capacities, distribution timelines, and vehicle types. Utilizing advanced mathematics and Data Science, we deployed two sophisticated algorithms. The first, adapted from our Mazda Automotive project, identified the optimal warehouse locations (Gravity points). The second, a custom-developed solution, addressed the “Traveling Salesman Multiparameter Problem” with unprecedented 92% accuracy. Both algorithms processed vast data quickly, integrated into a comprehensive system featuring robust backend services, a customized database, and a user-friendly frontend interface.
Business Value and Benefits
Our solution, SolForLog, empowered Biedronka to simulate various logistical scenarios, fine-tune operations, and achieve substantial savings. Key benefits included:
- Optimal warehouse positioning and facility number determination
- 15% reduction in logistics route mileage, cutting fuel and vehicle depreciation costs by 10%
- Significant reduction in vehicle procurement costs
- 7% increase in warehouse utilization
- Strategic cost and savings predictions aiding top management decisions
Over a decade, SolForLog’s efficiency allowed Biedronka to build an additional warehouse each year without extra investment, significantly enhancing their competitive edge and operational efficiency.