How Tigaraksa Cut Fleet Costs with Route Optimization

In today’s competitive market, operational efficiency and on-time delivery are essential for staying ahead. PT Tigaraksa Satria Tbk (Tigaraksa) is one company that has benefited significantly from MileApp, using AI-powered route optimization to streamline its logistics and improve overall operational efficiency.

Tigaraksa also invests in several other companies and owns trademarks such as Crystal Dentist, Blue Gaz, Always Ahead, and Tira S&D System. The company operates across three segments: products, food, and consumer.

In this case study, we look at how MileApp helped Tigaraksa optimize its logistics system and improve operational efficiency across the business.

Challenges

As businesses grow, efficient logistics management becomes a key driver of success, and effective delivery route planning is one of its most important elements. Yet many companies still rely on manual methods to plan their delivery routes.

Tigaraksa faced the same situation. Below are the three main challenges the company encountered with manual delivery planning.

1. Manual delivery route planning

A major problem with manual route planning is the risk of human error. Factors such as distance, traffic, and delivery time all have to be weighed carefully, and miscalculations can lead to late deliveries and unnecessary extra costs.

2. Manual vehicle capacity planning

When vehicle capacity is planned manually, it is hard to make the most of every vehicle. The result is often inefficient deliveries, with trucks leaving partially loaded or running suboptimal routes.

Manual capacity planning also costs companies the visibility they need across their entire fleet. Weak oversight of vehicles can lead to issues such as unscheduled maintenance.

3. An internal system without route optimization

Many companies have invested in building internal logistics management systems, but these systems often lack advanced route planning features. As a result, companies may have plenty of data yet be unable to use it to plan better routes.

Solution: AI-Powered Route Optimization from MileApp

To solve these problems, Tigaraksa chose MileApp as its field operations management platform. MileApp automates and digitizes field operations to improve visibility, efficiency, and security, and one of its core solutions is delivery route optimization.

Using AI, MileApp analyzes parameters such as distance, time, and vehicle capacity to create the most efficient delivery routes. It processes both historical and real-time data to identify patterns and determine the best routes based on these factors. This helped Tigaraksa cut daily planning time from hours to just a few minutes.

With more efficient routes, Tigaraksa can save on transportation costs and improve delivery performance. MileApp also uses AI to let teams customize the field app without any programming knowledge, so Tigaraksa can tailor it to its specific needs without depending on developers or a technical team.

This customization gives Tigaraksa full control over its app, so it can adapt workflows to match how its teams actually work.

Results

After implementing MileApp in its logistics operations, Tigaraksa saw significant improvements. Route optimization helped the company lower transportation costs and improve delivery efficiency. By planning routes better, minimizing distance traveled, and making better use of its vehicles, Tigaraksa achieved the following:

Vehicle utilization increased by up to 25%, as each vehicle could be used for more trips
11 vehicles removed from the fleet, saving more than IDR 2.5 billion per year in operating costs
2 vehicles downsized, saving more than IDR 79 million per year in operating costs

With capabilities such as delivery route optimization, field app customization, and AI in the supply chain, MileApp has helped Tigaraksa lower operating costs and make better use of vehicle capacity.

Conclusion

MileApp has proven to be an effective platform for tackling logistics challenges: it speeds up planning, increases visibility, and improves overall efficiency. By continuing to adopt the latest technology, including AI, MileApp helps companies like Tigaraksa stay competitive in an increasingly demanding market.

Want similar results for your fleet? Talk to our sales team and book a free demo.

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