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Delivery delays, suboptimal utilization of the trucks, and misaligned transport capacity can cost CPG companies millions each year. Lingaro’s AI-powered Distribution Network Optimizer closes that gap by forecasting demand, balancing resources, and optimizing shipments for cost savings, reliability, and sustainability.
What CPG Companies Can’t Afford
In CPG logistics, the stakes are high: delivery delays cost sales, underutilized trucks waste money, and misaligned transport capacity can break retailer trust. A single mismatch between supply and demand can ripple through the network, from manufacturing plants to warehouses and ultimately to store shelves.
The numbers are telling — a recent report shows that transport tech upgrades can yield cost savings of 8-12% per year. And in an era of fluctuating fuel prices and volatile consumer demand, that’s a margin no CPG can afford to ignore.
With our extensive experience in developing Distribution Network Optimizer solutions, we effectively and measurably support clients in optimizing their transport processes. By blending AI forecasting, network balancing, and shipment optimization, it supports turning data into decisions — and decisions into on-time, cost-efficient deliveries.
Distribution Network Optimizer:
A Capacity to Demand (CtD) Framework
Leading CPG companies are moving beyond reactive logistics management to a new approach: artificial intelligence (AI) in distribution network optimization. And it all starts with a Capacity to Demand (CtD) analytical model — a system designed to align available transport capacity with fluctuating, often unpredictable demand patterns across a company’s distribution network.
At the heart of the CtD approach is a three-phase AI/ML-driven model. First, the Demand Forecaster accurately predicts truck requirements. Next, the Distribution Network Balancer is designed to ensure the entire distribution network is ready to meet fulfillment demands. Finally, the Delivery Optimizer aims to fine-tune shipment planning and execution to maximize efficiency and resources.
Lingaro’s Capacity to Demand model: Distribution Network Optimizer
These three modules are designed to work seamlessly together as an integrated ecosystem, where insights from one module can directly feed into the next. However, they can also bring value to supply chains when utilized separately. Whether as a full integration or just a module, the goal is to create a living, adaptive system that helps transport managers plan, respond quickly, and continuously improve their transport network.
Demand Forecaster
For many CPG companies, getting truck demand wrong can be costly. Overestimating trucks for deployment means paying for unused capacity, while underestimation leads to missed deliveries, overtime charges, and damaged customer relationships. This is a real-life struggle for most businesses, especially when sales campaigns or seasonal peaks make the demand volatile.
The Demand Forecaster is designed with the main benefit of helping transport leaders solve this by using historical order data, sales forecasts, and external market signals to predict transport needs with high accuracy. It delivers rolling forecasts, giving transport leaders enough lead time to make smart dispatch decisions and adjust as needed.
With the Demand Forecaster, supply chains can now order exactly the trucks it needs, no more and no less. This precision reduces failed or late deliveries, cuts unnecessary transport costs, and frees up managers from reactive firefighting to focus on continuous improvement.
Distribution Network Balancer
Even with accurate forecasts, a distribution network can still be delayed if resources aren’t distributed effectively. CPG companies often face situations where one distribution center is running at capacity while another has idle space and trucks. This imbalance wastes warehouse and truck capacity, labor, time, and capital assets. Even worse, it risks lost sales when products do not reach the right customers on time.
The main goal of the Distribution Network Balancer is to address the imbalance by assessing the entire network’s readiness before execution. It evaluates truck availability, inventory levels, warehouse space, and handling capacity to ensure the network is ready to cover distribution volumes. Then, it provides recommendations to align resources with demand hotspots.
With this tool, transport planners can proactively redistribute loads, balance flows across distribution centers DCs, and avoid last-minute scrambles. CPG companies are enabled to deliver more consistently to their retail partners — even during peak demand — while making the most of every square meter of warehouse space and every truck in their fleet.
Delivery Optimizer
Finally, even a balanced distribution network can lose efficiency if trucks aren’t fully utilized. Most CPG companies see half-empty vehicles heading out simply because the delivery routes or shipment plans weren’t optimized for truck fill rates. This shoots up their per-unit transport costs and increases the company’s carbon footprint, impacting them in both expenses and sustainability goals.
The Delivery Optimizer aims to address these challenges. It’s designed to create shipment plans to maximize truck utilization, whether through full truckload (FTL), less-than-truckload (LTL), milk-run, or co-loading strategies. It can also run simulation scenarios, allowing transport leaders to prepare for demand spikes, disruptions, or changes in delivery models.
As a result, distribution networks can operate with consistently higher vehicle fill rates, fewer trips, minimized total kilometers traveled — including a reduction in empty miles and lower overall transportation spend. Direct shipments from manufacturing sites to customer can also increase, speeding up delivery times while reducing handling and storage costs.
Lingaro as Your Transportation Optimization Partner
Choosing a technology partner for transport optimization goes beyond checking boxes of platform features and technologies. At Lingaro, we combine proven AI/ML capabilities with deep industry experience in CPG logistics, bringing both the technical expertise and the sector-specific insight needed for real and measurable impact.
Our modular yet integrated approach means companies can start with the components that address their most urgent pain points. Then, there is the opportunity to expand into a full end-to-end solution as their needs evolve. And with rich documentation, reusable assets, and dedicated implementation support, we make adoption smooth and sustainable.
At Lingaro, we’re not just a solutions provider but a partner committed to delivering real results in efficiency, cost savings, and customer satisfaction.
Full Trucks. Stronger Brands. Better Business.
In CPG logistics, every shipment / delivery matters. AI-powered planning has long evolved from a “nice to have” into a competitive necessity. By forecasting demand accurately, balancing network resources, and optimizing shipments, companies can deliver more reliably while controlling costs and reducing environmental impact.
Lingaro’s Distribution Network Optimizer supports CPG companies in various capacities, depending on their needs. It helps them turn complex challenges into streamlined, intelligent operations.
With trucks full, routes efficient, and delivery promises kept, transport leaders can focus on what really matters: building a stronger, more resilient supply chain. Smarter moves don’t just keep goods moving — they keep the brand moving forward.
