Economic Management of Distribution
In today’s business world, transportation costs typically constitute more than half of the total logistics costs. Future transportation and distribution will increasingly become dependent on technology, to redress the cost base.
Smaller – Faster – More frequent – More on time shipments
are required as a result of trends such as
Increased variability in consumer’s demands – Quest for total quality management – Near-zero inventory production and distribution systems – Sharp global-size competition – Tolling – New entry of disruptive technologies – Platooning / Driverless vehicles
For logistics and distribution companies the rising cost of fuel has meant that they need to become efficient in the way that they plan their transportation routes and schedules. The traditional methods of route planning do not address real-time events that affect businesses every day.
To accommodate customers short-notice requirements, route availability, and vehicle issues, route planning has to be able to quickly respond to any event to ensure the lowest cost of transportation. This process is a real-time management problem, which MBS can help resolve.