Transportation flows represent an essential aspect of logistics. This involves not only the distribution of finished products to customers, but also the supply of goods and movements during the production cycle. Therefore, it is essential to optimize this supply chain activity. Many factors and techniques are used to optimize logistics . The primary goal is to reduce costs and increase customer satisfaction. However, environmental issues and employee well-being are just as important as the first two factors. Here are four solutions that can improve the transportation flows of your logistics.
Optimization of the transport and rotation plan
A transportation plan concerns the delivery of finished products to customers as well as the procurement of raw materials and the movement of resources from one warehouse to another.
With the democratization of e-commerce, it has become essential to optimize transportation plans. The goal? To reduce delivery times and the risk of errors to satisfy customers, but also to reduce transportation costs. Furthermore, optimizing transportation plans lowers fuel consumption, which translates into lower carbon emissions.
Powerful software today allows for the collection and analysis of countless amounts of data. This allows for improved and better-anticipated delivery methods to a given location, within a specified timeframe, and at the best price. The TMS ( Transport Management System ) management and automation system is a perfect example. Such a software tool allows for the optimization of delivery vehicle utilization, with, for example, a significant reduction in empty trips. Furthermore, it standardizes decision-making, which facilitates human work.
How to optimize your logistics strategy?
Logistics massification involves establishing a platform at a regional level in order to optimize the volume of product loading. This method has all the advantages expected from logistics optimization.
Reduced logistics transport costs: Transport plans allow for a significantly larger load volume. This ensures vehicle occupancy rates always reach 100%, allowing for a more diversified range of transport options.
Reduced carbon footprint: A larger cargo volume provides the opportunity to use more environmentally friendly means of transport such as trains or boats.
Furthermore, mass production leads to improved service quality, as staff at a regional platform are specifically trained to prepare orders.
Outsourcing of goods distribution. The company delegates the order preparation and delivery phases to a specialized company, which results in a reduction in logistics costs.
However, the principle of massification comes up against a location constraint. To benefit from real logistics optimization, the warehouse or platform must ideally be located, in order to limit back and forths . Note that massification can concern a single company (such as a large retailer), or contribute to the pooling of transport costs. For example, several car manufacturers can pool the transport of their vehicles to a platform, the latter being responsible for supplying all the dealerships in a region.