Transport is, in general, the most representative logistics operation in terms of costs for a company (it represents around 54% of logistics costs, according to studies carried out by ILOS in 2016). Henrique Alvarenga's post addressed in an enlightening way the adequacy of the transport strategy to the reality of each company. However, in addition to this strategy at a more macro level, there are initiatives at the operational tactical level that help support transport management and further reduce operating costs.
One of these initiatives is the implementation of routing software and TMS (Transportation Management System). With the growth in the volume of operations, a lot of important information ends up being managed in a disorganized way, generating several inefficiencies. The TMS appears in this context as a centralized transportation management system, with modules for managing its own fleet, managing carriers, tracking, shipping, among others. Furthermore, specifically the routing module can bring substantial gains, since many distribution operations are manually scripted or not scripted at all. A gain of one more delivery per vehicle per day can translate into savings of millions at the end of the year.
Another initiative that is even easier to implement is vehicle profile adjustment. With constant changes in the demand profile, an area that previously would have to be served by a large vehicle, today can be easily served by a smaller vehicle. This profile suitability can generate a considerable reduction in total costs given that fixed costs of depreciation, insurance and taxes vary greatly according to the size of the vehicle. In addition, fuel consumption also tends to be lower with the reduction in vehicle size.
And does your company have a TMS software with a scripter implemented and being fully used? Do you regularly monitor vehicle occupancy for profile adequacy? What is certain is that great cost reduction opportunities are present in the transport operations of many companies.
References
<https://ilos.com.br/web/qual-e-a-estrategia-de-transportes-mais-adequada/>
