TNT Express has been shortlisted as a finalist at the 2012 Franz Edelman Award for its successful application of operations research in network optimisation. The company uses operations research (applied mathematics for decision making) to analyse and enhance its transportation networks, resulting in more efficient routes and lower mileage. This has allowed TNT Express to save costs, improve service to customers and develop managers’ skills. TNT Express has been selected by the Institute for Operations Research and the Management Sciences (INFORMS®) alongside five other firms. Every year since 1983, the Edelman competition recognises outstanding examples of innovative operations research in the profit and non-profit sector.
The work being presented, known internally as “GO” (global optimisation), is a joint program of TNT Express, ORTEC and Tilburg University. The three partners, who have worked for six years on tens of network optimisation projects for TNT Express, are delighted to be competing for the prestigious award.
In 2005, TNT Express began using mathematical techniques such as statistical analysis and modelling to optimise its domestic line haul network in Italy. Operational research now constantly helps TNT make decisions on all aspects of its operations, including site location planning, optimal truck routing, fleet management and staff scheduling. TNT Express carried out 200 network optimisation projects in 2011. Over the past years, TNT Express saved 60 million kilometres of mileage and 54 million kg of CO2 emissions by optimising its domestic networks in Germany, France, Spain, Italy and China alone.
Next to adopting OR tools, TNT Express has teamed up with the Tilburg University/TiasNimbas Business School (Netherlands) to create a two-year management development program in transportation network optimization. Called the GO Academy, the training has been delivered to more than 150 managers from TNT since 2008.
The 2012 Franz Edelman Award will be presented on 16 April 2012 in Huntington Beach, California.
