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Designing and Improving Transport Operations

A key component within the Supply Chain, is of course Logistics. Transport operations are what link manufacturers to suppliers, and suppliers, to consumers. Dependent upon a strategic planning process, transport within supply chains relies heavily upon businesses taking a holistic perspective at the heart of planning their supply chain processes.

Go Supply Chain Consulting can help you to design and improve your transport operations. Some situations that might drive this requirement are:

• A recent acquisition of a company with a complementary distribution requirement/customer base
• Perhaps you want to access a new sales channel or market overseas and want to know how you can serve new customers efficiently
• It could be that your sales volume has declined, and you want to reorganise your distribution infrastructure to reduce fixed costs
• Your competitors may have a shorter order lead-time and this may be giving them a competitive advantage over you
• Your cost to serve may be too high due to a drift in your sales order profile

Our approach to designing and optimising transportation is as follows:

• Firstly, we work with you to understand your customer service requirements such as order lead times, order frequency and delivery restrictions
• We gather an understanding of how you serve your existing customers by region and sales channel
• Situational analysis is carried out; operational processes and volume flows are mapped and the cost to serve customers is analysed by channel and region
• Based on the situational analysis we make recommendations for cost savings and suggest how to bridge gaps in customer service expectations
• Recommendations include details of the potential return on investment and the ease of implementation
• We will also help you through the planning and execution of the implementation of our recommendations

Our recommendations can vary widely:

From the implementation of route scheduling software to opening/closing cross dock locations or alternative routes to market for your goods. Our logistics consultants will always provide tailored recommendations for your business that optimise transport operations without compromising the needs of your customers. We understand the balance between customer needs and optimisation!


design considerations

  • How can I reduce carrier costs?
  • How can lead time be shortened with the minimal cost impact?
  • Should I have a dedicated fleet operation or use subcontractors?
  • Could systems such as route optimisation software or vehicle tracking equipment offer a benefit?
  • What is the best route to market for a new type of customer or sales channel?
  • Should cross dock facilities be considered for serving geographies distant from the DC?
  • What should be included in a service level agreement with transport providers?

Potential risks

  • Higher cost to serve than necessary
  • Poorer customer lead times than direct competitors
  • Capital investment in vehicle assets that are not required or sub optimal
  • Lack of investment/incorrect investment in systems resulting in a lack of benefits realisation
  • Poorly managed transport service providers and bad service delivery
  • An undifferentiated approach to serving new types of customers or sales channels
  • Poor vehicle/asset utilisation
  • Higher than necessary fuel costs