Identifying and eliminating operational inefficiencies within your network is essential if you hope to thrive in today’s Parcel, Express & Postal industry. Service demands are high and rising, and it’s getting harder and harder to keep costs to a minimum. If you’re dozing, operational inefficiency can quickly become your Achilles heel.
Key to discovering a network’s shortcomings is to have a tactical plan, follow it, and get feedback from operations so you can make corrections and improvements to it.
This is especially true of the largest logistics network component, the linehaul network, as sudden changes in linehaul planning have a major negative impact on total costs, which you can avoid with an effective tactical plan that enhances network design decisions – routing choices, resources allocation, repositioning of vehicles – and can be adjusted to broad data variations, including seasonal demand.
Rising above the daily pressures
Creating and implementing a tactical plan isn’t easy. In the real world of daily business, the distinction between tactical and operational planning is often not so clear, and sometimes non-existent.
With planners caught up in the daily juggling act of maintaining service levels, coping with unexpected orders, employees calling in sick, delayed truck arrivals and other pressing issues, planning tends to be managed more operationally. So a sudden resource gap gets filled by deploying expensive ad-hoc resources. What’s more any overview is lost, so tracing back unnecessary costs or pinpointing inefficiencies later on becomes almost impossible.
Any of this sound uncomfortably familiar? Love to equip your network for daily fluctuations in orders and resources, while still having optimized planning? Sometimes wish you had a little more overview on operations so you could address inefficiencies better? At ORTEC we specialize in helping businesses like yours create and implement an optimized planning. Visit our website and see what you think.