Benchmarks & Client Cases

Interregional Transport Optimization

The Challenge

Unleveled demand through the day

truck-occupancy

Problem


• Operational costs on an upward trajectory in the transport business

• Unlevelled demand throughout operational hours: 50% of the demand within a 4h period (out of 24h)

• High percentage of inactive time for vehicles and drivers

• Pressure to reduce operational costs in order to hold market share



Root Causes


• Traditional Transport System Design: resources dedicated to different groups with fixed capacity that does not contribute to an improvement in resource occupation

• Lack of resource planning standards: daily reactive management

• Excessive loading and unloading times: high percentage of non-value-added tasks

• Increasing fuel and resource cost

The Solution

planning-route-tool

1 trailer: n trucks

• Separating trailer planning from driver and truck planning: intermediate terminals to break routes and reduce empty trailer trips

• Resources dedicated to geographical regions instead of groups allows for improved occupation

• Implementation of Planning Tools in loading area, delivery area and capacity scaling. 80% completion of routes planned days in advance, with daily optimization for the remaining 20%

• Productivity improvement of load/delivery operations supported by Daily KAIZEN™ Tools

The Results

The project had a payback period of 7 months with annual savings surpassing $2.5 million.


Cost per load

Cost per load

Cost per load reduced by 23%

Load/Unload Productivity

Load/Unload Productivity

Number of loading and unloading activities increased by 65%

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