Strategic transportation planning using 4flow vista

 The module Strategic Transportation Planning of 4flow vista® facilitates the optimization of transportation structures and processes. Transportation costs can be reduced significantly.

The 4flow vista® module Strategic Transportation Planning aims to:

• improve the transparency of the transportation network in order to identify and eliminate inefficiencies,
• plan or reschedule transports strategically in order to create an efficient and flexible transportation structure.

The key benefit of the 4flow vista® module Strategic Transportation Planning is the significant reduction of transportation costs by better planning and by continuous optimization.

A continuous transparency of your transportation network helps you to identify and avoid inefficiencies. Using 4flow vista reduces costs and increases flexibility and efficiency within your transportation network.

Identifying an efficient and flexible transportation structure, which has minumum costs, is the aim of strategic transportation planning.

Modeling the status quo

The basis for the planning is the status quo modeled in 4flow vista® . For that purpose the planner defines the number of network tiers and models, the number of sites per tier, and the relations between them. The networks can contain any number of sites and relations. If necessary, the transportation networks in 4flow vista® can also be built up automatically from imported data.

There are various views to visualize the planning: alongside the geographical view the planner can use the schematic view or plan the network based on process chains. You can switch between the views at any time. The schematic view is especially beneficial  for multi-tier networks, since at each level the amount of value-added can be visualized.

When modeling transportation relations, the means of transportation, their frequency, and the underlying tariff, according to the freight tariffs of commercial carriers, are defined. When calculating the use of freight space, transportation volume, dimensions and the stackability of the transported container are considered. This allows the exact calculation of not only the transportation weight and volume but also of the volume weight and the number of meters loaded. When computing transportation costs based on these results and the entered freight tariffs complex tariff matrices, average weights and Incoterms can be considered. The resulting transportation costs can also include in-transit inventory.

Creating transparency

Alongside the gain created by visualizing the transportation network, 4flow vista® facilitates planning by offering various analyses for the network. These range from cost analyses, throughput analyses to analyses of the duration of the transport and other key numbers like the utilization of the deployed resources.

Optimization of transportation structures

On the basis of this assistance, the planner can develop various scenarios. Starting from the as-is scenario the planner generates scenarios for direct shipment, consolidation, the dedicated logistics center concept or milk runs. These scenarios represent either individual actions or a complete to-be concept. Moreover, 4flow vista® optimizes transportation relationships automatically deploying state-of-the-art mathematical optimization algorithms. Taking frequency dependant inventory costs into account, optimal means of transportation, freight tariffs and frequencies are defined. By combining inbound and outbound shipments, integrated transportation concepts are generated. At the same time the flow of empties, which 4flow vista® derives from the flow of goods, is taken into consideration.

Benefits from the module Strategic Transportation Planning of 4flow vista

Applying the module Strategic Transportation Planning of 4flow vista® reduces costs and increases the efficiency of the transportation network. The disadvantages of conventional planning can be avoided.

• 4flow vista® standardizes transportation planning.  All Planners utilize the same methods and algorithms.
• 4flow vista® facilitates the modeling, visualization and evaluation of transportation networks. Planners can assess a high number of scenarios.
• 4flow vista® supports the transportation planner by offering multiple optimization functions.

For further information please read the White Paper 4flow vista® - module transportation planning.

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