Getting your product to the customer is only half of the problem solved. Making sure that this can be done in the most effective manner can provide additional opportunities for cost saving and service improvement. In these tough times, that can make a huge difference.
Transport managers face myriad problems on a daily basis. Whilst vehicles may be fully loaded on outbound journeys, they often run empty returning to base. Additionally, increasing environmental requirements place more and more pressure on organisations to reduce emissions such as exhaust and noise so alternate modes of transport such as rail can be viable options. But dealing with daily problems and the challenges of `the last mile’ often distract managers from dealing strategically with this challenge.
Reviewing how an organisation structures and manages its operational transportation requirements can reveal significant opportunities for improvement. Today’s generation of tools and approaches can quickly process massive amounts of information to deliver real insight and rapidly pinpoint opportunities for improvement such as:
GRA takes a bottom-up, fact based approach in analysing routing and optimisation options to ensure a defensible, realistic and achievable set of options can be achieved. Transportation route optimisation can be done alone or in conjunction with either optimisation or simulation. Using our advanced modelling technology, transportation routes are defined to minimise cost of inbound or outbound shipments, while considering realistic cost and constraint structures. This helps answer the question, “what happens to transportation routes when the network design is changed?” Other factors we consider include:
Through this approach, GRA can help articulate:
The benefits of this approach include:
With a focus on both cost reduction and service improvement, we engaged GRA to design and lead a company-wide Procurement Transformation. GRA worked closely with us to design and implement a new operating model and deliver significant improvements in procurement governance, processes and systems, whilst also managing a program delivering multi-million dollar savings.
– David White, Manager Enterprise Procurement, Aurizon