Modelling & Optimising Transport Network

Logistics Provider

Background & Brief

This client offers a wide range of developing services in the parcels, packets and mail sectors. SCALA were previously engaged to review the site capabilities and current capacities, the purpose of this project was to produce a model replicating the current transport activity and then compare against a number of modelled scenarios to aid the decision on future network strategy.

Project Approach

The project approach combined;
  • A detailed review of all existing transport activity at all 6 depots
  • Full replication of all existing transport activity on an “average volume” day using DiPS software with detailed comparison to the actual performance against key metrics including driver hours, total miles, fleet requirement and utilisation
  • As above for low and peak volume days to check model sensitivity
  • SCALA devised scenarios for potential network structure changes accompanied by Centre of Gravity analysis and re-running the transport model
  • Optimisation of depot boundaries and associated volume activities
  • Detailed feedback and comparison of each model including inbound volume analysis, route details and statement of key metrics
  • Benefits & Results

    The benefits & results of the project included the following key outputs;
  • SCALA recommendation to reduce the number of depots by combining 2 operations in the North to a single location and doing the same with 2 operations in the South
  • Model enabled the company to test scenarios according to volume change or location preference
  • Improved understanding of volume sensitivity and key drivers and improved vehicle utilisation on customer activity and internal trunking
  • Reallocation of activity to best suited depot, reducing empty running and stem mileages
  • Enabled introduction of “state of art” Automation into the two consolidated sites
  • Final Outcome

    The client has successfully completed the Northern consolidation, and is currently implementing the southern rationalisation.
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