Imagine going from 200 routes to 129 without reducing revenue, yet also taking on more customers than ever before–all without hiring or laying off drivers!
Check out how Royal Cup pulled this off with Geo Operations.
There’s a saying in the world of product fulfillment: distribution is as vital as the product itself.
For the 100-year-old coffee and tea distributor, Royal Cup, this truth became apparent in the wake of the COVID-19 pandemic, when supply chain management faced unprecedented challenges.
Since 1896, Royal Cup has offered such luxurious, decadent coffee, they earned themselves the reputation of being ‘fit for royalty.’
Yet, even companies with a 100-year legacy need to adapt and change to survive in an ever-shifting world.
For years, Royal Cup had used Excel and a standard routing software to manage their routes.
But in 2020, when supply chain issues rose to a peak, rising gas and vehicle prices made them reconsider when and where they could take a hit to their bottom line.
“We decided we really needed to take a long look at how we determine if a customer is worth the route,” says Kyle Moody, Route Optimization Specialist at Royal Cup. “I really needed a better visual to help us determine the cost to deliver to each customer and distribution method in general.”
More than that, Moody and his team needed a quick way to assess whether a new potential customer fell within their current distribution network, or whether it was worth opening a new distribution center to serve the area.
It didn’t take long for Moody to discover Mapline and tap into the power of Geo Operations.
“I really, really liked what I saw… one of the biggest wins for us is we can calculate actual road miles from the customer location back to our warehouse.”
From there, Moody assessed whether it made sense to fulfill certain customers from one warehouse or another, and considered discontinuing service to customers who were too far away to justify the expense.
Incorporating location into their route planning had already significantly cut expenses. But for the first time ever, they successfully optimized routes based on the customers’ preferred delivery frequencies, something they had been unable to achieve with their previous software.
In no time, they went from 200 routes to 129, without reducing revenue.
Geo Operations redefines delivery planning and empowers brands to effortlessly optimize routes by their own unique constraints and ensure cost-effective outcomes.
Capacity-conscious features, impeccable delivery window timing, and a data-driven design enables dispatchers to customize routes, balance loads across drivers, and consider any kind of route restrictions, all in a fraction of the time it would take to do otherwise.
“Mapline has helped us do a really great job of determining how many customers we can support in an area. It’s helped us understand our cost to service a customer weekly, for example, or if it should be once a once a period instead.”
Rather than suffer due to inflation, Royal Cup hit a record revenue of $350.0M in 2022.
With 80+ stores across the United States, they’re still upholding their commitment to serve coffee “so fresh and flavorful” that it’s “deemed fit for royalty.”