Kathleen McLoughlin
Senior Supply Chain Analyst
@Supplychainanalysis

How Tesco and Satalia improved last mile routing and scheduling

Tesco teamed up with artificial intelligence and optimisation specialist Satalia on a collaborative project to improve its home delivery operation. Together, they designed and implemented a bespoke routing and scheduling optimisation solution. The robust system made Tesco’s home delivery operations more efficient and enhanced the customer proposition.

This project is a great example of a large grocer working with a start-up to enhance capability in an activity critical to its delivery operation. Completing in 2018, it opened more opportunities for Tesco to scale its home delivery capacity.

Outcomes include improved efficiency and fewer road miles

In addition to providing opportunities for scaling, the solution has created a platform from which Tesco can now build feedback into its home delivery systems.

Here is a selection of key project outcomes:

  • 11.2 million miles saved in one year
  • 5% increase in efficiency – increase in the number of drops per hour
  • 8% decrease in fuel consumption per order

This is how the solution works

Learn more about the project and solution

This extract comes from an in-depth case study available to subscribers of Supply Chain Analysis. The case study outlines the full project, covering

  • project inception
  • the development process
  • the solution
  • key outcomes
  • cultural and technical challenges
  • next steps for Tesco and Satalia 

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You could feature in a future case study

We are looking for examples of inspiring and innovative projects that are leading the way in supply chain. If you have a story you’d like to share with us, please contact Kathleen McLoughlin.

About Satalia

Satalia builds and applies the latest AI technologies to solve industries’ hardest efficiency problems. Projects it has delivered include:

  • developing last mile delivery systems for DFS
  • optimising box configuration to improve packaging efficiency for DS Smith
  • workforce optimisation for PwC

About Tesco

Tesco is one of the world’s leading food retailers, with more than 6,700 stores in eight countries across the UK, Ireland, Central Europe, and Asia. Tesco employs over 400,000 colleagues and serves millions of customers every week, both in stores and online. In April 2020, Tesco became the first food retailer to fulfil one million orders in one week.

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