Challenges - Shippers - Tactical Network Optimization

Capacity Planning

Market and Customer demands are not properly converted into logistics capacity requirements. Asset utilization is not maximized.

Companies know exactly what they want to build or sell in future. What they often do not know, however, is what future changes will mean for their logistics capacity. Companies must ask themselves:

  • How many people do we need in our cross docks in order to master the challenges we will face tomorrow, next week, or next month?
  • What will it mean for truck capacity? How many trucks in what sizes will I need for what jobs?

As plans are changing, tactical planning does not cover the exact scenario that will show up in operations, but it can help give a good indication of how stakeholders can make decisions in a qualified way. This, too, requires companies to address certain questions:

  • How many additional resources will we need to keep the business running without having spare capacity, decreasing our profit margins?
  • How can we give our process partners (truck companies, forwarders, HR leasing companies, etc.) reliable forecast data that helps them run their businesses efficiently, giving them the potential to decrease cost in a joint approach?

In an ideal world, these challenges would not be insurmountable for the average business. But where the uncertainties of the modern world and the modern workplace intervene, companies can find themselves grappling with unpredictable project timelines, vacation time, and other factors that make forecasting the future in a reliable ways a deceptively difficult task.