TransportaTion
OPTIMIZATION
How we do it?
Supply chain execution mostly rely on decisions related to transportation of raw materials and finished goods. Shark Optimization helps you by improving your trucks utilization, evaluating different route configurations and delivery frequencies, reducing CO2 emissions, and identifying solutions that balance shipments over time.
Owned trucks vs outsourcing
We define of the most convenient option between owning trucks or outsourcing transportation by modeling shipments and service restrictions for your business. Our projects consider service level, costs and capacities in the modeling.
Balance shipments
If the company aims to balance shipments over time, we create optimized routes with this objective. We consider the demand, capacity restrictions, transit restrictions and delivery windows to balance shipments and avoid demand peaks.
Determine fleet size
We define the optimal route configuration for your demand, with the objective of maximizing vehicle utilization. Our projects define the optimal fleet size and the right mix of vehicles by capacity
Optimize returns
We design strategies to collect returns, obsolete products or packing materials while minimizing transportation costs
Business case
Evaluation of transportation options for temperature-controlled cargo
challenge
A 3PL provider of temperature-controlled warehousing was relying on a network of LTL carriers for the last mile of its supply chain. In order to lower operating costs in a challenging market, the 3PL company needed to test the impact of replacing the LTL network by a dedicated fleet. The analysis involved modeling complex service conditions for end customers and defining the cost-to-serve for each location.
PROJECT
The company turned to the consulting team to tackle the transportation project. The project included network modeling, simulation and transportation optimization. The team was able to model the whole delivery network including user-defined service constraints. As a result, potential itineraries for over 1,800 delivery locations were generated. The scenarios made it easy to evaluate the differences between LTL and dedicated fleet in a route-by-route basis.
The project helped in the definition of transportation assets needed for each scenario and allowed the company to simulate routing strategies that predict costs and service levels. By using models, the 3PL company was able to make decisions about the future of its delivery network
RESULTS
The models showed that in most cases the dedicated fleet provides a more economical solution than LTL carriers. With the analysis of the consulting team, the company created a hybrid solution using a dedicated fleet for most of the deliveries while maintaining a limited network of LTL deliveries. Potential savings account for 10% of transportation annual costs. In addition, there are potential additional savings as the company expands geographically
SERVICES
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Supply Chain Digitalization
CONTACT US
Tel: + (507) 304 8280
Email: contacto@shark-optimization.com
Ave. Omar Torrijos Herrera, Ancón, Corozal Este, Edificio #201, Ciudad de Panamá, al lado de la estación del tren de pasajeros.