Benchmarks & Client Cases
Interregional Transport Optimisation
The Challenge
Problem
- Operational costs on an upward trajectory in the transport business
- Unlevelled demand throughout operational hours: 50% of the demand within a 4h period (out of 24h)
- High percentage of inactive time for vehicles and drivers
- Pressure to reduce operational costs in order to hold market share
Root Causes
- Traditional Transport System Design: resources dedicated to different groups with fixed capacity that does not contribute to an improvement in resource occupation
- Lack of resource planning standards: daily reactive management
- Excessive loading and unloading times: high percentage of non-value-added tasks
- Increasing fuel and resource cost
The Solution
• Separating trailer planning from driver and truck planning: intermediate terminals to break routes and reduce empty trailer trips
• Resources dedicated to geographical regions instead of groups allows for improved occupation
• Implementation of Planning Tools in loading area, delivery area and capacity scaling. 80% completion of routes planned days in advance, with daily optimisation for the remaining 20%
• Productivity improvement of load/delivery operations supported by Daily KAIZEN™ Tools
The Results
The project had a Payback period of 7 months with annual savings surpassing £2.5 million.
Cost per load
Cost per load reduced by 23%
Load/Unload Productivity
Number of loading and unloading activities increased by 65%
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