FICO (NYSE: FICO):
Traxión reduced empty runs by 2.9 million kilometers
Traxión expects to reduce costs by US$2.5 million, reduce emissions and minimize wear and tear on its fleet through FICO route optimization
The company will reduce the empty runs of its vehicles by 20%
Traxión won a 2022 FICO® Decisions Award for ESG (Environment, Social and Governance) Champion
Traxión, the leading mobility and logistics company in Mexico, used FICO route optimization technology to help it use fewer vehicles, save on fuel costs, reduce emissions and reduce fleet wear. The company has already saved 2.9 million miles in travel, $725,000 in costs and 458 metric tons in emissions after implementing just 11% of the optimal solution. Traxión is on track to reduce empty runs by 20%, which will save it more than 10 million kilometres, $2.5 million in costs and an impressive 1,580 tonnes of emissions once its operations are fully optimized .
Traxión has seen a rapid return on investment by implementing the optimization capability within the FICO® Platform, a cloud-based decision-making platform that allows companies to centralize and operationalize advanced analytics quickly.
More information: https://www.fico.com/en/products/fico-xpress-optimization
“Designing our logistics planning from an algorithm was a turning point in the way the company operates”, said Vicente Quiroga Garcia, Director of Operational Excellence at Traxión. “Our team now has all the tools and techniques needed to perform a large amount of analysis using various scenarios and generate the best route – a route that is transparent, fair and much more efficient in assigning units, operators and kilometers.”
Prior to implementation, Traxión business managers knew that the spreadsheet-based program they used to develop routes and schedules was insufficient, as evidenced by the high number of “dead” miles; traveling by trucks and buses without cargo or passengers.
In addition, the spreadsheet macros were often difficult to use and did not allow easy integration of new rules and constraints. This has been a significant inconvenience during the COVID-19 pandemic, as protocols around sanitizing vehicles and physical distancing between groups of employees have frequently changed the number of routes required.
Optimizing transport logistics at Traxión was a complex undertaking. An accurate and efficient schedule was necessary to fairly distribute the workload of the drivers and respect collective agreements regarding the length of shifts and the days worked per week. The solution also needed to address specific customer requirements, such as driver experience, vehicle features such as air conditioning, and the ability to put the customer’s logo or brand on the bus.
The optimization also had to take into account unpredictable complications, such as vehicle breakdowns and traffic delays, which impact the route and need to be resolved quickly. At the heart of all these factors is the “Rubik’s Cube” of the routes themselves.
“In the initial phase of integrating the FICO solution, Traxión deployed 700 buses from two depots in a municipality to cover 3,300 service routes,” said Garcia. “The second phase was more complex, extending to 21 municipalities.”
It is important to note that with regard to the implementation in Traxión, the route changes were to be gradual. Just because an optimization solution can be modeled doesn’t mean it can be 100% deployed overnight.
“Drivers take passengers, not packages, so passengers need to know the driver and they need to know where to go each week,” Garcia added. “To account for this very real human aspect, we created a threshold setting that business users applied to avoid dramatic schedule changes. Schedules were optimized by, say, 5% per week, up to they reached a point where the solution was 100% optimal.
So far, Traxión has deployed eleven percent of the optimization solution in 16 out of 19 units. This includes 5,953 buses and 176,109 services in total. The largest unit has 19,000 services. At this level of optimisation, the Traxión team has already saved 2.9 million kilometres.
Advances in optimization also contribute significantly to Traxión’s emissions reductions, with 458 metric tons of emissions saved after implementing only 11% of the optimal solution and 1,580 metric tons of emissions expected once its operations are fully optimized. Every mile a bus travels puts 30 cars out of service, so with a fleet of 6,200 efficiently routed buses, 186,000 cars are kept off the roads, saving 1.6 million metric tons of emissions.
“In less than a year, Traxión improved analytical efficiency and speed of insight by 80 percent.” said Nikhil Behl, Chief Marketing Officer of FICO. “It has allowed them to make remarkable improvements while meeting the conditions of the pandemic, which is quite an achievement. Their optimization work shows the potential of FICO’s prescriptive analytics to help companies achieve ESG goals and make the world a healthier place. »
For its achievements, Traxión won a 2022 FICO® Decisions Award for ESG Champion.
“The problem Traxión was trying to solve was very complex,” said Sheila Leverone, director of marketing at eDriving and one of the judges for the FICO Decisions Awards. “A multitude of factors go into a transmission network optimization like this. It was evident that Traxión had done a lot of thinking about the operational considerations and incremental approach needed to move towards the optimal solution.
Traxión is the leading mobility and logistics company in Mexico. Traxión incorporates highly recognized brands: Muebles y Mudanzas (MYM); Transportadora Egoba; SID group; Auto Express Frontera Norte (AFN); LIPU, Redpack and Autotransportes El Bisonte, Traxión Logitics and Traxporta. It has the widest portfolio through which it offers a unique and integral solution for freight and logistics, and transport of personnel and students, consolidating into a single solution.
Traxión is the first land transport company listed on the Mexican Stock Exchange, consolidating itself as a link between the financial sector and the logistics industry in the country.
About the FICO® Decisions Awards
The FICO Decisions Awards recognize organizations that achieve outstanding success using FICO solutions. A panel of independent judges with deep industry expertise evaluates nominations based on measurable improvement in key metrics; demonstrated use of best practices; the scale, depth and scope of the project; and innovative uses of technology. The 2022 judges are:
- Sidhartha Dash, research director at Chartis
- Paul Deal, Head of Risk, Mortgages at Westpac (previous winner)
- Senthil Erulappan, Director, Merchant Product Engineering, Risk and Collections at FIS
- Armand Junior, Managing Director, Risk and Compliance at Dock (previous winner)
- Sheila Leverone, head of marketing at eDriving (previous winner)
- Sibulelo Ncamani, head of operational risk and governance at Absa Bank (former winner)
- Graham Rand, operational researcher and publisher of Impact
- Dinesh Suresh, Manager, Digital Constructs for Consumer Secured Loans at OCBC Bank (former winner)
Winners of the FICO Decisions Awards will be spotlighted and will win tickets to FICO® World 2022 Decisions Conference May 2022 in Orlando, Florida.
FICO (NYSE: FICO) powers the decisions that help people and businesses around the world thrive. Founded in 1956, the company pioneers the use of predictive analytics and data science to improve operational decisions. FICO holds more than 200 U.S. and foreign patents on technologies that increase profitability, customer satisfaction, and business growth in financial services, manufacturing, telecommunications, healthcare, retail, and many other industries. . With FICO solutions, businesses in more than 120 countries are doing everything from protecting 2.6 billion payment cards from fraud, to helping people get credit, to ensuring that millions of planes and rental cars are in the right place at the right time.
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