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This paper outlines findings of the case study on the courier company which distributes parcels on the territory of the Republic of Croatia. The work performance indicators which are analysed show inconsistency of the workload in the last mile delivery, as the result of the existing model of regionalization. The improvement proposal refers to introducing a model of dynamic regionalization and respective vehicle routing. It enables optimal logistic resources allocation, in order to increase the service level and to rationalize operating costs.

In order for business organizations to meet the increasing expectations of users, a quality transport organization is one of the most important factors in the overall process chain and cost optimization. The service user wants a quality, favorable and fast service and therefore it is extremely important to rationalize the transportation. One of the ways to make the service faster, cheaper and better in implementing the technological process is by using mathematical models and software routing tools. The purpose of this paper is to analyse the different ways of determining the route and how they affect the overall delivery process of delivery to the ultimate recipient in the urban area. Concrete comparisons, along with certain route parameters, will also show the delivery results