– PT. XYZ is a logistics company engaged in the distribution of products throughout the Greater Jakarta area. In carrying out the distribution process activities, the company is faced with the requirements of the problem about the company required to provide information and serve consumers with locations scattered in the Greater Jakarta area with due regard to capacity of vehicle and route. Therefore, it is necessary to determine the right route so that companies can meet timely deliveries to consumers. Given these problems, this study aims to optimize vehicle routes with the nearest neighbor method so as to minimize the time and cost of distribution which will then be analyzed to analyze the actual data and the nearest neighbors. In this study using the nearest neighbor method. The results obtained from this study are: (1) Able to reduce the average percentage of vehicle mileage in October 2018 by 27% or 44,09 km per shipment. (2) reduce total travel time of 157 minute from actual data, (3) Able to increase total costs by 15% or Rp. 53,458. Thus,the method of taking the nearest neighbor can reduce the distribution costs incurred by the company each month.Keywords – Distribution cost, Nearest neighbor, Route determination