Enhancing Supply Chain Efficiency: The Synergy of Integrated Loading and Routing
Addressing Logistics Challenges in a Dynamic Market
As a producer, manufacturer, or distributor, you face a range of challenges in managing your supply chain effectively. From sourcing raw materials to meeting increasing service level expectations, the logistics of finished goods have become increasingly complex. These challenges have led to inefficiencies in transportation, as indicated by alarming figures such as empty truck percentages and under-utilized pallets.
However, within these challenges lies a number of opportunities for improvement. By integrating our loading and routing processes, you can unlock significant value and create a more sustainable and cost-effective supply chain. This E-Guide explores the potential of this integrated approach, focusing on how it leads to enhanced customer satisfaction, reduced carbon emissions, and substantial cost savings.
↪ Get the E-Guide to learn how integrating the routing & loading processes creates extra value for producers, manufacturers, and distributors to deliver to their customers.
E-Guide by Goos Kant, ORTEC Managing Partner, Professor of Logistic Optimization
Combining Loading & Routing: A Two-Step Approach to Optimal Utilization
Step 1: Calculating the Size of an Order
An order typically comprises multiple items that need to be efficiently grouped and stacked on load carriers, like pallets. By leveraging detailed logistics data, such as item sizes, stacking orientations, and stability rules, an optimization engine can create loading-friendly, transport-friendly, and unloading-friendly pallet configurations. This optimization not only improves efficiency during the loading process but also positively impacts transportation and unloading stages.
Step 2: Combining Orders into Loads to Maximize Capacity Utilization
Integrating 3-dimensional loading optimizers with routing optimizers allows for the creation of more efficient loads. By considering additional details and constraints, such as warehouse preferences, driver requirements, and receiver wishes, empty space can be minimized, resulting in reduced mileage and improved overall capacity utilization.
Additional Opportunities for Increased Load Utilization
- Product Design: Strategic product design can lead to better space utilization, with the potential to accommodate more items on a layer or pallet.
- Splitting Orders: By intelligently splitting large orders for different delivery destinations, multiple routes can be optimized, minimizing costs and improving efficiency.
- Fillers: Utilizing available space in trailers or pallets for fast-moving products destined for regular delivery at specific locations.
- Optimization on Demand Level: Forecasting product demand and leveraging optimization algorithms allows manufacturers to create loading plans that ensure sufficient inventory and meet customer demand effectively.
“Integrating routing and loading optimization presents a transformative opportunity for manufacturers and distributors in the increasingly complex logistics landscape.”
Goos Kant, Managing Partner at ORTEC and Professor of Logistic Optimization
Integrating Process and IT: Streamlining the Supply Chain
To fully benefit from the integrated approach, it is crucial to have seamless integration of the optimization platform within the overall supply chain. By integrating with ERP systems (such as SAP), and automating order creation, companies minimize integration costs and streamline the transportation process.
Customer Case Study
Molson Coors (beverage): Molson Coors Brewing Company implemented an integrated solution within SAP to optimize delivery planning for over 17,000 customers in Quebec. By leveraging routing and dispatching alongside pallet and load building, the company achieved significant improvements in load utilization and route efficiency.
Conclusion: A Path to Enhanced Supply Chain Efficiency
In the ever-evolving logistics landscape, the integration of loading and routing processes offers producers, manufacturers, and distributors a powerful solution to optimize supply chain efficiency. Leveraging advanced technologies, vast data insights, and collaboration between key stakeholders unlocks significant value, reduces carbon emissions, and ultimately delivers exceptional customer experiences. Embracing this integrated approach with ORTEC empowers companies to stay competitive in the global market and meet their sustainability goals.
Read the E-Guide.
Discover how to optimize your transportation of goods to improve efficiency, reduce costs, elevate customer service, and meet green initiatives.
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