What are Optimization Capabilities?
ICT systems like ERP, WMS and TMS offer a wide range of functionalities supporting the various information flows in logistics processes, such as those needed for warehousing, transportation and route scheduling. Optimization takes a wider perspective. In order to optimize any given operation, a larger system of interdependent functions is considered. The two-fold goal of optimization is to maximize benefit while minimizing risk for each phase and stakeholder involved. Optimization Capabilities can be added to improve functionality and comply smoothly with industry specific requirements.
Why apply Optimization Capabilities?
The complexity of transportation planning is rapidly increasing and the following factors are highly influential:
- Customers are more demanding
- Legislation is stricter
- Rising fuel and labor costs add pressure
- Trends show increasing favorability towards supply chain optimization that leverages a centralized planning approach both for multiple regions and/or depots and for related processes of suppliers and customers
- Partners and sub-contractors can assist in execution to create further efficiencies
All these factors contribute to a dramatic increase in the choices that a planner has to make. Therefore, to be able to develop a cost efficient transportation schedule, a planner needs the right tools to optimize: to create a schedule for a set of orders and vehicles, but also to adapt or change the schedule as new information comes in.
While back-office systems like ERP, WMS and TMS offer a wide range of functionalities to manage information flows, they are limited in their capabilities to support the planning process, particularly when dealing with industry-specific business rules. Optimization capabilities can be added to improve functionality and comply smoothly with industry specific requirements.
How to choose and apply Optimization Capabilities?
Numerous industry analysts advise a best-of-breed solution. ORTEC’s optimization solutions integrate seamlessly with two-way, real-time functionalities, both with back office systems and with mobile devices and on-board computers.
What are the results of using Optimizing Capabilities?
The results of using ORTEC’s optimization capabilities are:
More efficient operations generally yielding cost savings of at least 2% up to 10%, through:
Why contact ORTEC to apply Optimization Capabilities?
- Better deployment of own resources and sub-contractors
- Reduced ‘empty miles’
- Improved vehicle utilization
- Reduced CO2 footprint due to the reduction of miles per stop
- Increased span of control for planners because of a centralized planning organization, leading to operational excellence
- Improved customer satisfaction from delivering quickly, and being able to respond flexibly to orders that are running late
- Higher service levels: more on-time deliveries; adherence to legislation, rules and constraints
- Efficient utilization of employees and increased employee satisfaction from scheduling in a more efficient way, taking labor constraints into account, such as hard (rules) and soft (preferences).
ORTEC has been optimizing planning capabilities in transportation for 35 years. Optimization is what we do, and we know it is the game changer in creating competitive advantage for our 2000+ customers. ORTEC software and advisory services currently provide customized solutions for business across several industries, as well as solutions that seamlessly integrate with existing administrative systems, like TMS, ERP and/or WMS.