Challenge
Design a 14-hub last-mile network to cut average delivery distance by 20% while keeping CapEx flat.
Logistics & Supply Chain · Case Study
Last-Mile Hub Network Design for an E-commerce 3PL
Client: Third-party logistics provider serving 9 metros
Approach
- Imported 3 months of anonymized delivery destinations as custom POIs.
- Ran demand-cluster identification within each metro polygon.
- Layered road & freight network coverage and existing competitor hubs.
- Compared 4 candidate network configurations side-by-side.
Outcome
Network blueprint adopted; first 4 hubs operational within 5 months. Delivery SLA hit rate improved from 91% to 96%.
Key metrics
Representative figures from this engagement.
1.84M
Deliveries analyzed
37
Candidate hubs evaluated
14
Final hub count
-23%
Avg. last-mile distance cut
$2.1M
Projected annual savings
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