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Transport Planning

Networking in the supply chain

For awarding transport contracts to logistics service providers – as well as for outsourcing complete logistics services – LogistikPlan develops tailored transport concepts for shippers and service providers.

However, a professional and cost-efficient logistics solution does not rely solely on outsourcing. First and foremost, transparency regarding processes, interfaces, transport volumes and costs must be established within the company itself.

Objectives of transport planning

The objective of transport planning is to achieve an optimum balance between time, quality and cost, in particular by:

  • Ensuring security of supply
  • Optimising transport costs
  • Optimising inventory levels
  • Establishing transparent processes
  • Reducing environmental impact

Modern transport planning is based on a data model with defined actual and target values. In reality, however, the ideal logistics scenario exists only “on paper”, as transport logistics are subject to daily changes – just like the transport market itself.

Demand-oriented planning of distribution networks

LogistikPlan principles for transport planning and optimisation

Based on a logistics concept or a transport concept, LogistikPlan consolidates all design requirements into a holistic planning approach – from inbound logistics and warehousing to distribution.

  • Integration of all transport requirements into a single transport structure, including full and empty load transports
  • Periodic, proactive transport planning to identify future volume changes and optimal order and delivery quantities within the transport network
  • Consideration of the entire supply chain and use of synergies, e.g. by integrating inbound and outbound logistics into in-house transport management
  • Coordination of route planning with upstream processes (production, assembly, dispatch scheduling)
  • Consolidation of transport orders into routes and tours, and evaluation of vehicle utilisation
  • Cost reduction through technical optimisation of load units and vehicle space utilisation

Tasks in transport planning

  • Analysis of existing shipment data, transport costs (benchmarking) and service provider contracts (freight rates, SLAs)
  • Detailed planning of the transport network, including organisational, geographical and technical design of the defined transport concept for different business units or markets
  • Tender management for awarding logistics services
    • Specification and tendering of logistics services
    • Evaluation of offers and support during contract award (bid negotiations)
    • Support during transition to new service providers

Tools for transport planning

By introducing IT tools, LogistikPlan supports customers on their path towards professional transport planning. We define requirements and assist with system selection, for example:

  • Route planning and transport management systems
  • Yard management and vehicle weighing systems
  • Time slot and dock scheduling systems
  • Monitoring and reporting systems for quality measurement and statistics

► Implementation of a route planning system

In small and medium-sized logistics operations, a route planning system serves as a fundamental IT tool for:

  • Optimising travel distances
  • Reducing the number of vehicles required
  • Optimising deployment time
  • Minimising freight costs

► Implementation of a transport management system

In larger logistics operations, a transport management system provides an end-to-end IT solution for quotation calculation, order management, transport planning, freight settlement and reporting. It enables:

  • Early planning of transport requirements
  • Cost-efficient procurement and implementation of transport services
  • Transparent processing and monitoring of transport orders

► Implementation of a truck guidance system

For companies with high traffic volumes on site, LogistikPlan recommends a vehicle management system to monitor all inbound and outbound deliveries – from truck arrival and loading to departure.

  • Coordination of truck arrivals, call-offs and dock assignment at the plant entrance
  • Monitoring of vehicle movements on the site
  • Paperless IT support for handling and weighing processes
  • Process optimisation through interfaces with forklift control systems and warehouse management systems

LogistikPlan project example:

     Transport planning for a building materials group

► LogistikPlan task:

  • Europe-wide optimisation and re-tendering of transport logistics for an internationally operating building materials group

► Key solution elements:

  • Distribution via hub-and-spoke systems
  • Use of regional carriers in milk-run concepts
  • Control rules for optimal dispatch via forwarding agents and CEP service providers
  • Design of drop-shipping processes (direct deliveries)
  • Standardisation of freight rates across the entire group

► Results:

  • End-to-end cost transparency by transport mode and cost driver
  • Increase in on-time delivery performance by 20%
  • Improvement in pick-up accuracy by 15%
  • Reduction of annual transport costs by more than 15%