The value of planning and optimisation in logistics

31 Oct 24

In the realm of transport management, enhanced planning and optimisation allows businesses to minimise costs whilst providing a high level of service.

The idea of lowering costs while improving service may appear somewhat contradictory – however, with a modern digital solution, firms can optimise every area of their operation and ensure they’re delivering peak performance. In this week’s blog, we’re exploring the true value of planning and optimisation, whilst exploring the potential for enrichment offered by a transport management system (TMS).

Enhanced planning

Gone are the days of relying on paper maps and outdated directions. In today’s digital age, supply chains are optimised by computer algorithms that can identify issues or problems – thereby giving operations the ability to react faster and more accurately.

With reliable data on hand, rerouting becomes easier – as does monitoring other key factors, such as fuel consumption, delivery windows, traffic patterns and environmental impacts. The advanced planning within a TMS helps logistics managers design optimal delivery routes, reducing miles travelled and cutting down on fuel costs. Ultimately, this saves money, reduces vehicle deterioration and ensures operational efficiency.

Vehicle and resource utilisation

The challenge of empty miles is currently plaguing the logistics sector – with fuel costs fluctuating, it’s more important than ever to ensure that businesses are maximising vehicle and resource utilisation. This highlights the importance of impeccable planning and optimisation.

A best-in-class transport management system manage vehicles, drivers, routes and much more within a centralised system with various functionalities that help to reduce empty miles. Using this technology, logistics managers can ensure vehicles are assigned to the right jobs, fully loaded and dispatched according to an optimised schedule.

Reducing admin

Another area where planning and optimisation deliver immense value is in reducing the administrative load on logistics companies. Manual processes, paperwork and reactive decision-making not only drain time but also increase the likelihood of errors.

Streamlining and automating your transport operations using a modern TMS will help you significantly reduce the inefficiencies of manual processes and all but eliminate errors resulting from lost paperwork. With less time spent on admin, your operations team is free to focus on the things that really matter – like growing your business!

Meeting sustainability goals

With the UK committed to bringing all greenhouse gas emissions to net zero by 2050, sustainability is a top priority for many companies. For logistics firms that rely heavily on fossil fuels for transportation, it’s clear that the route to a lower carbon footprint is a more streamlined and efficient the operation.

A comprehensive TMS can help logistics companies reduce their environmental impact by optimising routes, cutting down on unnecessary miles and promoting fuel efficiency. This not only improves a company’s green credentials but also aligns with the growing demands for more sustainable practices across the logistics industry.

Stay streets ahead of the competition

It goes without saying that the pressure on today’s supply chain networks is higher than it has ever been. Everybody wants to do “more with less” by increasing volume and speed, while stepping up environmental initiatives.

Businesses are seeking to gain a competitive edge by expanding the services they offer. To accommodate these evolving strategies, cloud-based supply chain solutions have been an integral part of many operations. By investing in smart systems, businesses can improve their decision-making, react faster to changing circumstances and deliver exceptional service – ensuring they remain a trusted partner in the supply chain.

TrackTrans

Efficient planning and optimisation are essential for success in logistics. They play a crucial role in lowering fuel costs, maximising vehicle use and boosting sustainability efforts – impacting every part of a logistics operation. By adopting the right tools and technologies, companies can achieve greater efficiency, improve profitability and enhance the quality of their services.

With TrackTrans TMS, warehouse management system (WMS) and electronic proof of delivery (ePOD) at your side, you’re not just planning better route – you’re planning a better future for your business.

Try our free demo and get started today.

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