A member of the Traxión Group, the transport and logistics market leader in Mexico, LiPU specializes in passenger transport (school and business transport, and tourism). The company boasts a fleet of 800 buses and minibuses transporting thousands of pupils, employees, and tourists nationwide every day.
- Founded in Mexico in 1997;
- member of the Traxión Group since 2016, Mexico’s premier transport and logistics company;
- present in 14 Mexican towns and cities;
- 2,300 staff;
- more than 800 vehicles;
- more than 7000 daily journeys;
- 250,000 people transported each day.
The recourse to an external service provider to optimize its route plans was motivated by a triple problem:
- the development of its sales activities;
- the reduction of operational costs;
- the rationalization of its fleet by freeing up vehicles to be able to serve new customers without having to purchase more buses.
Before embarking on the project, the LiPU teams needed two weeks to develop a proposal for its customers using Google maps. And the limitations in terms of features were quickly reached. To respond efficiently to customer requests and to win new contracts, LiPU needed to shorten this timescale by using a tool enabling it to run multiple route simulations reliably and quickly. The simulations help the customers validate the most relevant routes and must be capable of easy readjustment should the parameters change, such as the introduction of a new pick-up point or a timetabling change.
“The transportation of company personnel is a key argument in recruiting qualified staff in Mexico. In the provinces, where the public transport network is not very dense or reliable, it is even a fundamental service. The demand for staff transport is therefore very strong. Defining a pick-up point can also prove complex, when planning on taking on new staff members without making them walk for more than 10 minutes to reach a pick-up point.”
Raul Quintero, LiPU’s logistics manager
Responding efficiently to this strong demand and delivering in its other market segments required LiPU to rationalize its bus and minibus fleet. Especially because there are not many vehicles of this type available in Mexico: specialist manufacturers are rare and there is an average waiting time of between 12 and 18 months to acquire a vehicle. It is difficult to be responsive with timescales like that. The desired route optimization solution therefore also had to enable vehicle rotations to be considered, with the ability for example to be assigned to several tasks within the same day, thereby enabling optimal utilization of the existing logistics fleet.
The solution brought by GEOCONCEPT
The appropriate response: Opti-Time TourSolver and Territory Manager
Opti-Mobility, a GEOCONCEPT partner in Mexico since 2006, quickly managed to convince LiPU of the suitability of an offering combining two GEOCONCEPT solutions: Opti-Time TourSolver, a route optimization solution and Territory Manager, a territory management software solution. Demonstrating the benefits achieved by other market actors (30% average reduction in operating costs – fuel, insurance, carbon footprint…), the ergonomics of the solutions, and their performance, were critical elements in LiPU’s decision.
The passenger transport specialist now relies on the Opti-Time TourSolver solution to design and easily implement optimal route plans. Thanks to its powerful optimization algorithms, its intuitive interface and the incorporation of constraints specific to LiPU’s activities, the solution enhances operational performance. Territory Manager also enables LiPU to conduct more in-depth studies that help identify meeting points, fine-tune territorial segmentation, and assign vehicles to sectors.
Discover Opti-Time TourSolver
Project implementation was very fast thanks to the intuitive nature of the solutions and customized support. After several months of use and the addition of new licenses, deeper integration with the information system should enable the entire architecture to be optimized. Thanks to the Opti-Mobility project sponsor, LiPU now enjoys bespoke guidance, including powerful technological solutions, a personalized training service, and dedicated support.
Discover Territory Manager
White paper: How to reduce your transport costs?
Optimize logistics operations by implementing the right location-based technology.
This white paper aims to identify the chain of operations involved and establish the broad principles of the solutions that make it possible to optimize logistics operations by better managing the territorial aspects of movements and business organizations along with implementing the right location-based technology for the next generation of logistics platforms.
-20% fewer miles travelled
-25% travel time
Improved working comfort
“The GEOCONCEPT solutions have clearly helped accelerate the Traxión Group’s digital transformation, enabling it to bolster its leadership position in a highly competitive market”
A faster digital transformation at group level
The benefits for LiPU of deploying GEOCONCEPT solutions are only too apparent: Now it only takes a few minutes to perform a complex route simulation using Opti-Time TourSolver, instead of several days or even weeks before. These new capabilities now enable LiPU to compete for major invitations to tender, and to work on large-scale programs. For example, LiPU has used the Opti-Time TourSolver solution for a project to reorganize school transport services at the level of a Mexican state. A total of more than 145,640 pupils across 493 schools were identified. More than 4000 optimized routes were calculated in only two weeks.
If a client wishes to amend one or more parameters on a route, LiPU can now instantly recalculate a new route. This high level of responsiveness is essential. Because of the COVID-19 pandemic, many clients have had to make frequent changes to their routes to adapt to the health rules put in place by the Mexican government (areas to avoid, remote-working staff, etc.). The ability to replan routes easily has been crucial in this fluctuating situation.
Beyond performance in terms of the speed with which routes are calculated and recalculated, GEOCONCEPT’s solutions have optimized LiPU’s entire logistics fleet. Rotating vehicles onto several missions enables empty trips to be avoided to the greatest extent possible, a recurring logistics problem. Ultimately, LiPU has been able to reduce its total route mileage by more than 20%. Territory management also enables the driver’s departure point to be taken into consideration, reducing his travel time to the first stage of his route by more than 25%. Bus drivers thus spend less time on the road, with improved working comfort.
And the benefits now apply at Group level. Three other Traxión Group subsidiaries now use GEOCONCEPT solutions: UTEP (school and freight transport), SETTEPI (school transport in the provinces) and MESA (messaging).
White paper: Commercial and logistical territory management
Definitions, methodology, analysis… This white paper aims to give you the keys to understand territory management principles and main interest for sales activities.