Route Optimization API: How NextBillion.ai Helped Leading TMS Provider Address Complex Routing Constraints and Cuts API Costs by 40%

About the Company

Our client is a prominent Europe-based Transportation Management System (TMS) provider offering efficient order management, route planning and optimization solutions. The company helps transport companies in various industries, including last-mile delivery, general cargo and tank transport, move faster and better through its innovative cloud-based TMS platform.

The Challenge

Prior to switching to NextBillion.ai, the client faced several significant challenges with its previous service provider. The issues included:

• High API costs, resulting in increased operational expenses
• Inability to effectively handle complex routing constraints, such as the number of stops, start and end time, load capacity and service time, for route optimization
• Limitations in managing large matrix sizes, hindering scalability as their customer base grew

Our Solution

The client turned to NextBillion.ai for a superior solution that could address their challenges comprehensively.

NextBillion.ai’s Route Optimization API and Distance Matrix API provided the company with the ideal tools to optimize its TMS platform.

• By integrating NextBillion.ai’s Route Optimization API into its TMS, the client could offer its customers efficient route-planning capabilities. With the API, they optimized the sequence of stops in each route, considering factors such as start time, distance, delivery time windows, vehicle type, and loading time. This enabled drivers to follow the most efficient and cost-effective routes.
• With NextBillion.ai’s Distance Matrix API, the company gained access to a large matrix capacity of up to 5000 x 5000 origins and destinations, a significant upgrade from the standard 25×25 matrix. This expanded capacity allowed the TMS platform to accurately predict travel and arrival times (ETAs) at scale.
• They leveraged the real-time traffic data powering NextBillion.ai’s APIs to dynamically update arrival and departure time calculations based on changing road and traffic conditions. This ensured more accurate and reliable delivery estimates for their customers.
• NextBillion.ai’s dedicated customer support team provided timely technical assistance and onboarding support that facilitated a smooth transition to the new solution. NextBillion.ai customer portal’s built-in budget alert system enabled them to closely monitor API spends, which led to better financial planning and resource management.

The Outcome 

The seamless switch to NextBillion.ai resulted in significant advantages for the client and its customers, including:

• Improved customer satisfaction with enhanced route planning, reduced transportation costs and timely deliveries
• An impressive 30% improvement in ETA and ETD accuracy
• Up to 40% savings on API expenses compared to their previous service provider
• Increased ability to efficiently accommodate more complex route optimization constraints
• Scalability to accommodate the growing demands of the expanding customer base