Home/Case Studies/3PL — CPG LTL Optimisation
Logistics · 3PL / CPG · 2022

3PL — Consumer Package Goods LTL Optimisation

A Canadian 3PL operator engaged Borealis to assess Less-Than-Load (LTL) management for one of its consumer-package-goods clients — looking for room to improve service costs for new customers and to handle "network resets" as the CPG company's business changed. 9,000+ orders over twelve months were analysed; load consolidation, rail/truck combinations and "milk-run" trucking were modelled in ARTEMIS.

ARTEMIS Logistics simulation canvas — Hopewell Logistics Rail/Intermodal scenario with CPG Company storage, 10 Kenworth power units, 10 trailers, 10 ISO containers and Amazon Canada destinations in New Westminster, Delta and Calgary, set on a real road network around Bolton
Approach

Borealis ran Exploratory Data Analysis and Simulation Planning on a one-year sample of 9,000+ orders covering requested delivery date, order date, ship date, delivery address, weight, volume and pallet counts. Working with 3PL management we focused first on the items with the highest cost/operational leverage — Requested Delivery Date variability and load combinations for truck and rail — and deferred the long-tail constraints (container stacking, refrigeration/dry/heated product mixing, weight/volume limits, trailer availability) to a later phase.

Result

The consolidation model demonstrated 212% to 239% consolidation improvement across four tested load profiles, with 35-54% efficiency gains, against assumed pallet-stacking rules. Weight and volume were not the binding constraints in the dataset received — so additional, operationally-relevant rules should push consolidation further. Fewer shipments for the same demand translates directly into transport cost and delivery-time savings, and gives the 3PL a better story to take into customer contract conversations.

Key facts
  • 9,000+ orders analysed across twelve months
  • 212-239% consolidation improvement on tested profiles
  • 35-54% efficiency gain (load utilisation)
  • Truck "milk-run" + rail-car combinations modelled end-to-end
  • ARTEMIS scenario captured every order, mission, asset and destination
Consolidation results

200%+ consolidation across four load profiles

Each table is one tested pallet-stacking / RDD-flexibility scenario. Consolidation is the reduction in shipment count for the same order set; efficiency is the resulting load utilisation. Capacity (kg) and volume (cu-ft) are reported to show that the gains were not constrained by weight or cube on this dataset — adding tighter, operationally-realistic rules in a follow-on phase should push these higher.

Four ARTEMIS consolidation result tables — Consolidation 212% / 228% / 233% / 239%, Efficiency 54% / 47% / 40% / 35%, Capacity 27-30% kg, Volume 17-19% cu-ft
Figure 1 — four tested load profiles: 212-239% consolidation, 35-54% efficiency, weight/volume non-binding on this dataset.
Inside the simulation

Orders, missions, and the physical plant

The same 9,000-order dataset drives the ARTEMIS scenario: every order becomes an entity with source, destination and product, and the simulation builds "missions" that assign power units, trailers and containers to satisfy those orders against the operational rules. The synthetic asset-performance data generated by each run is what supports network-reset planning, risk modelling and ROI analysis.

ARTEMIS Logistics order list and Mission builder — orders from Bolton Warehouse to Amazon Canada New Westminster and YVR4 Delta, with a Mission step assigning Kenworth Power Unit C6 to pick up Trailer A2 and ISO 40"x48" pallets
Figure 2 — Orders tab (left) and Mission steps (right): Kenworth Power Unit C6 picks up 53' Trailer A2 from Bolton Warehouse, loads the assigned ISO pallets, and delivers to the listed Amazon Canada destinations.
ARTEMIS Logistics map view — Hopewell Logistics Rail/Intermodal scenario at Bolton with the CPG Company storage marker, Kenworth Power Unit C10 telemetry, 40' ISO container B10 and 53' Trailer A6 specs, and the Entities panel showing 10 containers, 10 power units, 10 trailers and Amazon Canada destinations in New Westminster, Delta and Calgary
Figure 3 — physical-plant layout and asset roster: CPG storage at Bolton, the Kenworth power-unit fleet, 40' ISO containers and 53' trailers, and destination warehouses across Manitoba & West.
Where this engagement goes next

Recommended follow-on phases

  • Pilot activity with detailed simulation of overall ROI and the customer's key value requirements.
  • Data-analytics and simulation-based operational costing and improvements.
  • Computer-simulation risk modelling and mitigation — historical data, synthetic data, trend & variance analyses, process improvement.
  • Subscription Decision-Support Tool for supply-network resets and customer planning, focused on business-return metrics.
  • Multi-factor simulation for training, process and procedure change-management.
  • Integration of 3PL operations with the customer's data architecture — ERP interfaces, JSON / XML / XLS / CSV ingest, database and geodatabase integration, custom data management as required.

See another case study →

All case studies