Logistical managers and engineers often hear that they have to reduce transport costs.
This is easier said than done.
Looking beyond tariffs and load space utilization
Most of the time the first reaction is to have another look at the tariffs of the logistical service providers. Next to that there is often looked at optimizing the load space utilization to minimize the number of transport units.
At one of our recent project, a supplier of luggage handling systems, it turned out that creating predictability in the logistical flow was the key to reducing transport costs. Knowing in time which volume, how many transport units and weight has to be transported can heavily impact transport costs:
“I planned my transport based on order size and historical orders. During loading our warehouse employees often discovered less space was needed than originally thought. To make sure, 8 trucks were booked when only 7 were needed.
This is a waste. I would already like to know how much boxes, pallets or containers are needed to make the shipment ready when planning the transport. In that way I can book the correct amount of loading space and I can inform the customer on how much transport costs are being passed on. I am able to do this now and this saves me both stress and cost.”
Preventing transport under- and overcapacity
At this project StackAssist was used to support on 2 points:
1. Overcapacity: you no longer book too much trucks which have to be cancelled last minute. This prevents overbooking of transport and the costs linked to that.
2. Undercapacity: you no longer book too less trucks which causes that an urgent transport has to be arranged. This not only saves you extra costs but also last minute stress.
This is an issue that we see occuring regularly at industrial companies transporting and installing big machinery.