Mind Map Strategic Transport Optimization

Companies are increasingly realising that transport can have a major influence, not only on customer satisfaction but also on cost patterns, flexibility and sustainability. And transport optimisation offers unique opportunities for innovation in these areas. Together with Ortec, international provider of advanced planning software, Supply Chain Movement has created a mindmap to outline the route, including road signs indicating potential hazards along the way.

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Mind map manual

Not only do certain key market trends have a direct link to transport, such as fuel prices and increasing customer demands, but the greying population and tighter legislation are also having an impact. The first step on the mindmap determines the external triggers for transport optimisation and provides insight into the strategic importance of transport. The trends force companies to take action:

Plan.

The second step on the map indicates the impact of the market trends on a company’s transport characteristics. The company’s plan should take account of these trends. The sector, type of product and the characteristics of demand and of the supply chain all result in specific transport requirements, preferences and criteria from the company’s own perspective. Once these requirements have been ascertained, a company can move on to actually planning the transport:

Do.

In step 3, a company selects transport optimisation concepts based on the first two steps. Transport planning software can handle calculations for several concepts (such as cross-docking and direct store delivery) as well as several rounds of optimisation (such as planning of routes, labour, materials and loads) at once, including what-if analysis. This results in unique insights which often reveal new opportunities for considerable cost savings, unexpected yet effective combinations or chances to do things differently. These calculations can also be fine-tuned, which can reduce transport costs by more than 30 percent without affecting service levels. Once the concept has been decided, the company can move on to implementation:

Check.

Step 4 sees the actual implementation of the transport optimization activities based on all the decisions made in the previous steps. This can be optimisation at strategic, tactical, operational or even real-time level. The most common outcomes are higher profits, lower costs, better management decisions, higher customer and employee satisfaction and a more sustainable society. With the right planning tools, a company can serve the market better:

Act.

Download: Mindmap Strategic Transport Optimization

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