Challenges - Shippers - Operational Network Optimization
Yard & Gate Management
Decisions are based on incomplete, partial information. Inability to efficiently respond to events. Loads are not optimized for profitability. Deliveries lack integration with customer facility requirements and production needs.
Gate capacity in frequently-used loading or off-loading facilities can present a significant challenge for many companies. Failing to manage these capacities appropriately can lead to high cost for waiting trucks and losses in valuable driving time, resulting in delays and additional costs. More than that, suboptimal gate management can impact HR planning for hubs, cross-docks, and warehouses, to say nothing of causing unused capacity and shortages.
Companies are also facing challenges when it comes to determining the correct production order for their goods such that stock levels remains low but production keeps running. Companies strive to generate constant levels of occupation in goods entrance and finished goods departments, but the reality is that a number of factors stand in the way of optimizing these factors. Complex interrelations between warehouse levels, warehouse cost functions, production schedules, transport orders, and goods in transit have significant impacts on potential optimization and must be considered accordingly.
Despite the inherent difficulty, companies that can successfully manage these streams in a harmonized way will have more stable internal logistics processes and cost optimized structures. They stand to benefit from lower cost of stock, lower cost of production re-planning, lower waiting cost for truck, and higher utilization of internal logistics staff.