Transport Modelling

A manufacturer of industrial maintenance products, delivering nationally on their own fleet, looking to assess the balance between cost and service level.

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​Obejctive

• To review the current transport operation and assess potential options for cost saving / improving distribution efficiency

Method

• Replicate an actual week of activity by utilising DiPS modelling software and a week of actual delivery data to create a “base case”

• Corroborate the results of the base case to ensure it is representative

• Model 3 additional weeks of data for a wider snapshot of the activity

• Explore scenarios to increase efficiency and apply them across the 4 modelled weeks to chart the results

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Results

• The in-house solution was running very efficiently given the existing constraints

• Implementation of a fixed-route schedule and adherence to it would provide significant transport savings owing to improved vehicle utilisation  

• The new schedule would permit a reduction in fleet and mileage equating to circa 25% of the current annual transport spend