Planning Roundtrip Multi-Stop Delivery Routes in OTM
Improving logistics performance still remains a challenge for many firms, even those that have achieved better planning and optimization from implementing well structured TMS applications available in the market.
In present economic situation, most organizations focus on transportation as a key area to reduce operational costs as it directly affects their bottom line. Realizing the importance of this rationale, better planning of transportation routes using advanced network design and optimization logic can result in significant savings for the planners. A round trip Multistop opportunity is one of the key areas in that direction which typically results in 5 to 15% reduction in transportation cost.
Planning Roundtrip Multi-Stop Delivery Routes
In instances where different shipments are scheduled to be delivered to different locations that are at close proximity to each other, it may make sense to build multi-stop shipments so that orders can be consolidated on one piece of equipment. Even better synergies can be achieved through optimization of Reverse logistics operations i.e. planning for customer returns on existing linehaul movements
Infosys Oracle Transportation Management Center of Excellence (CoE) has unlocked OTM configurations that enable automated Round-trip Multistop shipment planning, which would provide end to end visibility for reverse logistics operations using truckload services.
One of the most important requirement for any transportation planner in a manufacturing/retail organization is to consolidate the delivery orders from the warehouse with the customer returns to the warehouse in a single truckload shipment i.e. the same truck starts from the warehouse, delivering goods to customer and picking up the returns, if any and finally returning back to the warehouse. Thus instead of many direct shipments, a single consolidated roundtrip shipment should be created.
In OTM terminology, planning engine should create the route sequence of a shipment where the same location is the first pickup stop and the final destination stop thereby forming a roundtrip. Additionally OTM must handle both the delivery & pickup activity at the same stop. To elaborate further
Application of advanced planning features like depot profile, modifications in planning parameters and changes to the OTM properties result to the desired outcome.
Such stop sequence can be achieved manually also, but consolidating such order releases via OTM provides transportation planner with better route & cost optimization opportunities.
Acknowledgements: Nipun Lakhotia
