Transportation Routes Planning
Challenges
Optimizing transportation routes is a crucial aspect of supply chain management, regardless of whether a company has its own fleet or relies on third-party carriers.
For companies with a fleet:
- Determining the costs associated with the transport fleet, including standing costs, driver costs, fuel, and maintenance
- Deciding on the right mix of assets within the fleet
- Optimizing pick-up and drop-off routes to maximize asset utilization
For companies without a fleet:
- Minimizing empty movements through the efficient assignment of outsourced full truck load movements to carriers
- Considering the use of hubs/cross docks to consolidate shipments and lower costs through increased utilization
Sophus Solution
Utilizing routes optimization to determine the right fleet size and asset mix.
Balancing the costs of multi-stop routes against the fixed costs of new assets
Optimizing multi-stop pick-up or drop-off routes
Studying how routes would operate in real-life situations after completing a network design study.
Benefits
Transportation cost reduction of up to
10-15%
Improved service levels
Increased asset utilization
More about the next generation of transportation routes planning?