On April 16, 2012, TNT Express received the prestigious 2012 Franz Edelman Award for outstanding achievement in operations research for their submission “How Operations Research became part of the DNA of TNT Express”. Working closely with ORTEC and University of Tilburg to implement AIMMS-based optimization plans, TNT has saved over 200 million euro’s ($260 million) while simultaneously reducing the company’s carbon footprint.
TNT received the award from the Institute for Operations Research and the Management Sciences (INFORMS®) in Huntington Beach, California.
It all started with a first AIMMS model for TNT Italy and ended up in a Global Optimization (GO) program that now supports TNT Express worldwide saving over 200 million euro’s so far.
“We are delighted to receive this award, which testifies to the sophistication and efficiency of TNT’s operations,” said TNT Express Managing Director Global Networks and Operations Chris Goossens (see video). “Using operations research helps TNT save costs, improve service to customers and develop managers’ skills.”
The awarded GO program covers multiple aspects of TNT’s operations, including site location planning, optimal truck routing, fleet management and staff scheduling. TNT Express carried out 200 network optimization projects in 2011. Since 2005, TNT Express has saved 60 million kilometers of mileage and 54 million kg of CO2 emissions by optimizing its domestic networks in Germany, France, Spain and Italy.
In order to meet the demand for qualified operation managers, TNT Express has teamed up with the Tilburg University/TiasNimbas Business School (Netherlands) to create the GO Academy, a two-year management development program in transportation network optimization. Since 2008, the training has been delivered to more than 200 managers from TNT.
According to Gertjan de Lange, VP of Paragon Decision Technology ‘As proud members of the 2011 Edelman Award-winning team from Midwest ISO, we congratulate TNT for the game-changing attitude and their believe in the need to make optimization part of their daily routine. We are very happy that AIMMS was also a driver for success.’
Every year, the Franz Edelman competition recognizes outstanding examples of operations research-based projects that have transformed companies, entire industries, and people’s lives. O.R. uses advanced analytical methods to help make better decisions.
About TNT Express
TNT Express is one of the world’s largest express delivery companies. On a daily basis, TNT Express delivers close to 1 million consignments ranging from documents and parcels to palletised freight. The company operates road and air transportation networks in Europe, the Middle East and Africa, Asia-Pacific and the Americas. It employs 77,000 people and runs a fleet of 30,000 road vehicles and 46 aircraft. TNT Express made €7.2 billion in revenue in 2011.
About ORTEC Consulting Group
The ORTEC Consulting Group, member of the ORTEC Group, assists companies and organizations to make informed, fact-based decisions based on thorough analysis. This provides decision-making confidence, which is a much-needed requirement especially when optimizing business processes. By analyzing historical data and projected forecasts, our specialist consultants can calculate scenarios that provide a clear view of the facts and figures. This information is vital for balanced decision-making and business processes optimization.
About Paragon Decision Technology
Paragon Decision Technology is an innovative technology company with offices in The Netherlands, Seattle (US), Singapore and Shanghai. For over 20 years, Paragon has been developing and selling AIMMS, a unique mathematical optimization platform. AIMMS customers can create optimization engines and solutions that enable optimal decision making on complex strategic, tactical or operational problems.
Media contact: Tanya van Kirk
Tel: +31 (0)23 5 511 512