Executive Summary

Our client, a nationwide startup distributing grocery products to more than 100 locations across the United States, needed a faster, smarter way to consolidate weekly purchase orders and optimize multi-stop delivery routes. We designed and deployed an automated PO and routing optimization system that ingests weekly orders, analyzes logistics constraints, and generates efficient delivery plans. The solution reduced manual planning effort, streamlined order consolidation, and improved on-time performance, enabling the client to scale operations while consistently meeting service commitments.

Client Background

Grocery store distributor

A fast-growing U.S.-based startup specializing in grocery distribution to more than 100 locations nationwide. Operating with a lean team and rapid expansion goals, the company manages weekly purchase orders across multiple suppliers and regions, requiring reliable, cost-effective routing to maintain freshness standards and on-time delivery performance. The business needed scalable processes to keep pace with growth without adding significant headcount.

The Challenge

The client needed expert logistics guidance and a cost-effective way to manage weekly distribution to 100+ locations while scaling region by region. Existing processes were manual and inconsistent, driving up transportation spend and risking missed deliveries.

• Core needs: Logistics consulting, route and PO optimization, and immediate cost reduction.
• Goals: Achieve 100% weekly deliveries-in-full, expand coverage nationwide one region at a time, and closely monitor and control transportation spend.
• Why it mattered: As a startup, the client required scalable processes and real-time visibility to meet customer commitments. Along the way, we addressed compounding challenges—refining inefficient internal workflows (e.g., heavy delivery-receipt paperwork), resolving unforeseen delivery-site issues, and standardizing execution to support growth without ballooning overhead.

Our Solution

Approach:

• Applied a lean, continuous-improvement methodology supported by targeted digital tools.
• Started with discovery and value-stream mapping, then iterated in short cycles to deliver quick wins and scale what worked.

Key Actions Taken:

• Diagnosed the current state and recommended a fit-for-purpose logistics strategy (order consolidation, routing, and carrier mix).
• Built the core systems to streamline weekly PO intake, consolidation, and multi-stop route planning.
• Conducted on-site “Gemba” observations to surface real-world bottlenecks and refine processes.
• Established a feedback loop with the client for rapid iteration and incremental improvements.
• Coordinated execution across stakeholders: the client, their end customers, carrier and warehouse partners, and WMS providers.

Innovations or Customizations:

• PO and routing optimization engine to generate efficient multi-stop delivery plans.
• Custom documentation automation, including multi-stop bills of lading tailored to partner requirements.
• OCR-driven receipt capture to manage high delivery-receipt volume and reduce manual paperwork.

6. Implementation

Timeline:

• Week 1–2: Rapid discovery, prototype, and deployment of core PO intake and routing optimization to support the first distribution center (CA).
• Months 1–3: Stabilization, workflow refinement, and documentation automation (multi-stop BOLs); rollout of OCR receipt capture.
• Year 1–2: Nationwide expansions with repeatable playbooks and configuration-by-market.
• Ongoing (multi-year): Continuous improvement, cost monitoring, and feature enhancements based on weekly feedback loops.

Obstacles & How They Were Overcome:

• High paperwork volume and variability in delivery receipts: Implemented OCR with ML-based classification and validation checks, reducing manual entry and errors.
• Delivery-site inconsistencies (e.g., scheduling, access, unforeseen constraints): Fed issues back into routing rules and delivery windows; adjusted buffers and site profiles to improve first-attempt success.
• Inefficient internal processes and change management: Conducted Gemba walks, mapped current-state workflows, and rolled out streamlined SOPs and training.
• Cost control amid growth: Used the optimization engine to compare routing scenarios and carrier mixes, monitoring transportation KPIs weekly to keep spend in check.
• Partner and system alignment (carriers, warehouses, WMS): Created custom multi-stop BOLs and lightweight integrations; standardized data exchange to reduce handoff friction.

7. Results

Quantitative Outcomes:

• 99% on-time delivery performance sustained across regions
• Triple-digit percentage growth in the number of stores serviced since project start
• Significant reduction in post-delivery paperwork handling time through OCR and automation
• Improved route efficiency and transportation spend visibility via scenario-based optimization and weekly KPI tracking

Qualitative Outcomes:

• Positive end-customer feedback on reliability and delivery consistency
• Stronger carrier partnerships, resulting in smoother coordination and service quality
• Actionable feedback loop: insights from delivery sites and end customers fed into continuous improvements, enabling the client to serve their customers more effectively

Before & After Comparison (high level):

• Before: Manual planning, heavy paperwork, inconsistent site information, limited spend visibility
• After: Automated PO intake and routing, digitized receipt processing, standardized site profiles, and clear transportation KPIs driving ongoing cost control and performance improvements

8. Conclusion & Key Takeaways

Summary of Success: 

This engagement delivered step-change improvements in the client’s logistics operations. By implementing a tailored purchase order and routing optimization system, the client efficiently consolidated weekly orders and optimized deliveries to 100+ locations nationwide. The results: a sustained 99% on-time delivery rate, triple-digit growth in stores serviced, reduced administrative workload through digitized receipt handling, and strong positive feedback from end customers and carrier partners—fueling better relationships and continual service enhancements. Together, these outcomes demonstrate how MTS’s solution streamlined logistics, reduced costs, and supported rapid, scalable expansion.

Key Takeaways:

• Automating PO intake, routing, and documentation creates immediate efficiency and reliability gains.
• Continuous feedback loops from carriers and end customers accelerate measurable improvements.
• Standardized processes plus tailored documentation (e.g., multi-stop BOLs) reduce handoff friction across partners.
• Scenario-based optimization and KPI tracking keep transportation spend visible and controlled during growth.

Lessons Learned:

• Reinforce a continuous improvement culture—short iteration cycles drive faster, lasting impact.
• Pair process redesign with lightweight digital tools (OCR/ML) to remove administrative bottlenecks.
• Codify site-level constraints and delivery learnings into routing rules to improve first-attempt success at scale.