Procurement Logistics

Optimal delivery profiles reduce freight costs

ORCONOMY reduces freight costs by optimizing delivery profiles. It does this by consolidating deliveries. Delivery profiles are easy to handle and control. Many ERP systems already support delivery profiles, frequencies and schedules, but they don’t help you to select the correct delivery profiles. This is precisely what ORCONOMY’s mathematical optimization technology does. Schedulers and those in charge of freight use it to adjust their ERP system correctly. As a result, the existing software is put to optimum use.

When a delivery profile is used, the articles coming from a supplier are no longer delivered daily. A fixed schedule is used instead, so that factories are for example supplied every second day or every Tuesday. For the delivery schedule, net requirements are moved forward to the next possible delivery deadline. The careful choice of delivery profiles allows deliveries to be consolidated and the loading of trucks to be optimized.

The challenge when selecting delivery profiles is the fact that it is often necessary to evaluate in detail the material movements of many hundreds of articles. To synchronize the deliveries in pre-transport and main transport, this has to be done for several suppliers at the same time. In addition, delivery profiles affect the quantities stored and the strain on the incoming goods department. This must not be ignored if a well-founded decision is to be made.

ORCONOMY uses mathematical optimization methods to optimize delivery profiles for you. This allows you to achieve the maximum utilization of the trucks in pre-transport, main transport and post-transport and cut daily transport costs. Why not consult us for ways of reducing your freight costs?

Supply Chain
The use of optimum delivery profiles cuts logistics costs.

Benefits

The optimization of delivery profiles provides the following benefits:

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The reduction of partial loads increases the utilization of the vehicle capacity

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The utilization of scale effects in freight forwarding rates reduces transport costs

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The improved utilization of the truck capacity reduces CO2 emissions

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The use of fewer trucks with better utilization of capacity reduces the strain on the incoming goods department

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The availability increases as delivery profiles create a dynamic safety buffer

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The processes are stabilized as delivery profiles are resistant to changing requirements and generate stable delivery schedules

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The results are uncomplicated: Delivery profiles can be set directly in ERP systems and are easy for schedulers, suppliers and forwarding agents to follow

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The use of mathematical optimization methods achieves an optimum balance between transport and inventory/warehouse costs

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Potential savings: 10%-15%

Functions

Delivery profile optimization offers the following functions:

Lieferkette Spedition
End-to-end analysis of the entire supply chain in the forwarding business

  • Minimization of the overall costs resulting from freight and storage costs
  • Consolidation of the material flows across several suppliers and factories
  • Simulation of the effects on quantities delivered, transport costs and inventories
  • End-to-end optimization of the entire supply chain: pre-transport, main transport, post-transport, complete loads and overhang transports
  • Exact provision for complex transport rates with various stages as well as weight and volume restrictions
  • Detailed examination of truck loading: weight incl. load carriers, volume, stackability of loading units incl. permissible stacking height and extra load
  • Integration with SAP 
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