Improving dispatch operations in complex courier organizations

Efficient operations are essential for the survival of courier companies in their respective markets. In order to support efficient operations of the courier companies, a methodology for improving the dispatch process is proposed in this paper that incorporates both unitarian and pluralistic approach. In most of the actual operations research (OR), the objective is to develop efficient algorithms for the business models rather than the implementation of these algorithms into the real business environment. This work takes one step further by using pluralistic approach to validate the classic OR approach. The methodology was implemented in one dispatch center of an international courier company. The implementation of the methodology revealed the possibility of reduction of two drivers, which accounts for 80,000€ per year in savings. It is concluded that the proposed methodology not only can provide efficient operations alternatives but also can support the negotiation process with the subcontractors.