Taking historical order and site data as the basis, planners and analysts can simulate strategic scenarios across time periods to review delivery patterns, existing fixed routes and fleet mix to find solutions that offer up to 40% saving on current operations.
IMPROVING YOUR DISTRIBUTION
Is it cost-efficient to be delivering to customers in this pattern? What if I moved weekly drops from Tuesday to Thursday? What if I was able to top up ‘keep-fill’ units at 30% remaining capacity instead of 60%?
Optrak4 lets planners simulate changes to their delivery patterns for recurring customers to evaluate consolidation of the number of long-distance/out-of-region delivery drops that occur across the week and the value of renegotiating with the customer for a different schedule.
For industries that use top-up or keep-fill containers for delivery (oil or gas), or volume-limit containers for collection (waste), Optrak4 could be used to determine the monetary value of later deliveries and the potential benefits of adding forecasting.
Cost to Serve Analysis
How much will a new customer cost to take on? Which of my customers are a net cost on my distribution network? What should I quote for a piece of work?
Optrak4 can provide an invaluable tool for your analysts in determining the cost of serving either new or existing customers. By entering historical data and assigning either known or estimated costs and profits to the customer, Optrak4 will calculate and report on the expense of servicing that customer. New customers can also be assessed against historical routes to see what impact they would have had.
Are my depots in the right place? Can I re-optimise existing orders to a different depot? Am I using more vehicles than I should be? Can I change delivery patterns to reduce the number of vehicles I need on the road?
Optrak4 gives analysts and planners the ability to simulate multiple scenario variables on their own data; adding dummy elements like depots and outbases, or moving order affiliation between existing ones, to model alternate operational set-ups and provide actions for reconciliation and consolidation.
Can I add another 20 customers in that particular region? Do I have the vehicular and delivery capacity to meet SLAs? As a 3PL, can I afford to take on these new customers?
Optrak4 provides quick and easy processes to add new vehicles with different capabilities, turn on and off sets of vehicles, reassign them to different depots or change driver working hours, giving planners the ability to assess the impact on taking on new work from an internal operations standpoint. Paired with a cost-to-serve analysis, this lets organisations de-risk their expansion strategy from a distribution perspective.
What orders should I regularly assign to 3rd party carriers? Are there regions we deliver to that could be better outsourced? Should I bring more business in-house, and what opportunities should I pursue to make that more cost-efficient?
Optrak4 allows analysts to assess the carrier policy of their organisation; putting indicative costs down to determine either the rates it should set, or the price it should be seeking to negotiate. Historical data and patterns can be assessed to identify regions that could be outsourced or brought in house, depending on the profitability.
How do I integrate a newly acquired business into my operations? How do we reconcile two fleets to deliver to one consolidated customer base? Which areas are over serviced by depots and vehicles?
Optrak4 offers incredible modelling potential for these activities; the most successful Optrak Consultancy projects have focused on these very activities, including the consolidation of a 400 vehicle fleet to an 180 vehicle one, with a similar reduction in necessary depots. Working with Optrak specialists, analysts can drive significant savings from Day 1 of an acquisition.
“The punctuality and efficiency of our deliveries demonstrates our commitment to quality and customer service excellence. At Reynolds, we have always used proven technology to support our business. Central to this has been the long term partnership with Optrak4, to integrate its leading vehicle routing solution into our overall supply chain.”
Joe Reynolds, Managing Director at Reynolds
“Optrak gives us more delivery flexibility and is a great system to use. It has actually revitalised our planning operation at Fuchs. The investment in a world class vehicle routing system demonstrates our commitment in ensuring that we deliver the best possible service to our customers whilst keeping costs down. I firmly believe no other routing package can deliver the same benefits as Optrak.”
Darren Bourne, Distribution Manager at Fuchs UK
Kuehne and Nagel
“Optrak4 offered a more cost effective and personalised system that catered for our particular requirements and the decision to use an advanced routing and scheduling system has been fully justified by the benefits that Kuehne + Nagel has achieved. We have greatly improved the time we spend on planning and Optrak generates very efficient transport runs for a very complex daily transport operation.
Furthermore, thanks to Optrak4, we can meet the requirement to deliver next day to any location throughout the UK. We generally achieve 97-98% of this target on a daily basis. Optrak4 can plan effectively for consignments of any shape and size as long as we have the right information such as vehicle types, driver working times and product details for example.”
Chris Donaghue, Senior Transport Supervisor at Kuehne + Nagel
Find out how Optrak4 can improve your daily planning and save up to 15% of your direct transport costs.
Find out how Optrak’s route planning software can be tailored to your specific logistics challenges and requirements.