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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%