For many supply chains, transportation costs are one of, if not the largest, of all operational costs. Transportation networks have often developed over time instead of through intentional design. This lack of intelligent design costs organizations millions of dollars annually. Planners struggle with making transportation decisions related to balancing the size of a private fleet with common carriers, determining a robust strategy for mode selection and designing optimal routes that minimize transportation costs and empty miles. With shrinking capacity, rising costs and rapidly changing customer demands, making these decisions is becoming even more complex.
The LLamasoft Digital Design and Decision Center provides a wide range of tools to analyze and improve your transportation decision-making process and establish optimal policies. Continuously improve your end-to-end transportation network and quickly adapt to business changes to stay ahead of the competitive curve.
- Test and understand trade-offs of methods of transportation to choose the most efficient mode given your global supply chain network flows and costs
- Identify shipment consolidation opportunities to reduce transportation costs within multi-stop routes
- Determine optimal footprint for new or existing sourcing, production and distribution sites, as well as optimal DC-to-customer locations to achieve the lowest cost solution that meets service level targets
- Determine optimal shipment schedules for multi-stop vehicle routes to minimize costs while adhering to shipment frequency requirements and load balancing objectives
- Identify the most efficient use of your vehicles, containers or warehouse capacity by modeling and optimizing the transportation network as it relates to customer service
- Determine optimal private fleet size and asset mix
- Simulate lead-time variabilities for each mode in the decision-making process to ensure service levels can be achieved and true inventory levels and investments are considered
- Determine the best sourcing assignments for both inbound and outbound locations