Case Studies > How the Swiss Post optimized over 2,300 mail routes and saved over 2.5 million Swiss francs (CHF)

How the Swiss Post optimized over 2,300 mail routes and saved over 2.5 million Swiss francs (CHF)

Company Size

1,000+

Region

Europe

Country

Switzerland

Product

RouteSmart for ArcGIS
Esri’s ArcGIS
Oracle Database

Tech Stack

GIS
Geocoding
Route Optimization

Implementation Scale

Enterprise-wide Deployment

Impact Metrics

Cost Savings
Customer Satisfaction
Productivity Improvements

Technology Category

Analytics & Modeling - Predictive Analytics
Application Infrastructure & Middleware - Data Visualization
Functional Applications - Fleet Management Systems (FMS)

Applicable Industries

Transportation

Applicable Functions

Business Operation
Logistics & Transportation

Use Cases

Digital Twin
Fleet Management

Services

System Integration
Training

About The Customer

Swiss Post is a public limited company that has been delivering mail throughout Switzerland since 1849. It services a wide range of geographic areas, from lowlands to mountains, and large cities like Geneva and Zürich. The company has a significant operational scale, managing over 2,300 routes across more than 90 facilities. The organization has a strong focus on innovation and efficiency, having already integrated GIS and geocoded over 1.7 million addresses. The Head for Route Planning and Editing, Markus Steinmann, leads a team of Routing Specialists dedicated to optimizing delivery routes and improving operational efficiency. Swiss Post is committed to leveraging new technologies to enhance its services and reduce costs.

The Challenge

The Swiss Post has been delivering mail throughout Switzerland since 1849. This public limited company services vastly different geographic areas, ranging from the country’s lowlands, to the mountains, to large cosmopolitan cities like Geneva and Zürich. The Head for Route Planning and Editing, Markus Steinmann, together with his team of Routing Specialists, has reorganized over 2,300 routes in more than 90 facilities. The verification of the sequences by the Delivery Team Manager was initially completed on paper (manually), then moved to Microsoft Excel and color coded maps. As Switzerland grew, the buildings, related traffic, and mail volume increased. Using an Oracle Database, new delivery points were added manually at the apparent best sequence based on information from the mail sorting centers. The process was not ideal because new points were added where routes had capacity, causing the routes to become less geographically compact, and increasing travel times. Realizing the inefficiencies of this system, local management reached out to Steinmann and his team to reorganize their routes. They had already integrated GIS and geocoded every building, as well as every post box – over 1.7 million addresses. Steinmann and his team were able to visualize the routes electronically, but sought a tool that would set them on the road to improvement.

The Solution

Swiss Post looked to automate the routing process, and management was ready to commit. Steinmann describes the approach, saying that Swiss Post, 'wants to invest, because we know that it pays back in the end, so [we are] keen on new technology. Everything that can be done automatically is something that we gain, so [Swiss Post] is really moving in that direction, and we are profiting from that.' Steinmann’s team analyzed competitors and RouteSmart was a great match for Swiss Post because they already depended on Esri’s ArcGIS platform. 'We found that RouteSmart fits better into our environment. We have worked with Esri, and RouteSmart is just an add-on to our GIS family, so it was logical and financially much more interesting for us,' Steinmann said. They engaged RouteSmart in 2009 and Steinmann and his team underwent training, advancing to optimization in just six months. In 2010, he and his team introduced RouteSmart for ArcGIS to the postmen as a tool they’d use collaboratively to optimize their routes. In 2011, Swiss Post set up a competency center with three routing specialists that would oversee 9,000 routes. In 2012, they added two more specialists to manage the workload. They now use RouteSmart for larger reorganization projects on demand. Steinmann marries RouteSmart automation with Esri’s GIS tools to make the process even more efficient. 'We try to make everything as automated as possible for ourselves, so we just need to click one button instead of clicking more. Doing the same routines all over again is tiring, so after a while I need to make something new or do something new, and as long as I can better a situation I am happy with what I do. If everything is as good as it can get and everybody can use it, then I look for a new challenge.'

Operational Impact

The team can now successfully benchmark and optimize about 1,000 routes per year.
The implementation of RouteSmart for ArcGIS has produced significant efficiencies in time spent, saving over 2.5 million CHF.
The process has streamlined the time Steinmann’s team spent on the optimization process, making it more efficient.
The routing specialists work closely with postmen, incorporating their feedback to tailor routes to their specific needs.
The approach emphasizes continuous improvement and collaboration, involving stakeholders at multiple stages of the route optimization process.

Quantitative Benefit