Improving Delivery Eco-Efficiency Through Multi-Drop Route Optimization to Reduce the Delivery Budget Ratio and Carbon Emissions: A Study at a Confectionery Manufacturing Company

Abstract

Rising transportation costs and increasing pressure to reduce Scope 3 emissions require FMCG manufacturers to improve distribution eco-efficiency without compromising service performance. This study aimed to redesign multimodal road and sea distribution through multi-drop consolidation, heterogeneous fleet selection, and LCL–FCL evaluation to control the Delivery Budget Ratio (DBR) while reducing transportation-related emissions. A mixed-methods, applied research design was used, combining qualitative operational assessment with quantitative route and cost simulation. Data comprised 3,285 valid shipment records from January–June 2026, 3PL tariffs, destination access constraints, interviews, and GIS-based distance data. Candidate clusters were evaluated using capacity, access, service, cost, and GO/NO-GO criteria, while emissions were estimated using a distance-based activity approach. The simulation consolidated 852 shipments into 301 multi-drop routes, reducing estimated shipments from 2,843 to 2,292. Delivery cost decreased from IDR 14.793 billion to IDR 14.218 billion, generating savings of IDR 574.772 million (3.89%), while DBR improved from 4.84% to 4.65%. Estimated emissions fell from 126.16 to 82.93 tCO2e, a 34.27% reduction. Of 301 clusters, 148 generated savings, 147 were cost-neutral, and six increased costs, confirming need for selective implementation. The findings indicate that selective multi-drop consolidation improves distribution eco-efficiency, although complementary measures remain necessary to achieve the 4.50% DBR target.