Authored by: Ashish Malik & Hariharan Subramanian
In the Part-1 of this blog post, we dived deep into various aspects & methods employed to optimize resource & route in the FMCG Industry. For any business, having a great product is very important to be successful. But to be sustainable & rise up to the next level of success, keep up to increasing competition, meet the consumers’ changing behavior & demands, it is equally important to choose a competent technology partner, capable of scaling up your business requirements!
Krypt, as a preferred SAP partner has successfully implemented SAP TM for major industries across the globe. Following are the means through which Krypt can help the FMCG industry optimize resource & route for its supply chain using SAP TM:
1. Using VSR Optimizer (Vehicle Schedule and Routing Optimizer) in SAP Transportation Management to optimize the Vehicle scheduling and Routing:
- Combine Shipments where possible
- Consider scheduling contains such as customer/vendor/warehouses operating time, loading/unloading time etc.
- Consider incompatibilities such as which product can be loaded on which vehicle, which product can go with which product etc.
- Customer preferences on vehicle types
- Use the right mode. For example; will it cost less if I deliver this package as Less Than Truckload (LTL) or ship along with other packages as Full Truck Load (FTL)
- Use the right route which will optimize the cost. For example; will it cost less if I deliver to Customer A separately or will it cost less if I combine Customer B with Customer A in the same Trip
2. Optimizing the Load Planning using SAP Transportation Management
- Optimizing the loading capacity of your truck
- Take into consideration loading sequence based on your trip stop sequence
- Consider loading constrains such as stickability, loading pattern, orientation etc.
3. Optimizing the Carrier selection
- Using the stimulated transportation cost from actual contract to determine the carrier ranking
- Using VSR optimizer to select the right carrier on your trip based on cost/priority rules
- Tendering for capacity confirmation or Spot rates
4. Optimizing the Contract/Agreement management using Strategic Freight Procurement
- Simplifies the carrier selection process from start to finish
- Helps you to compare and select the best carriers and rates, as well as to facilitate contract creation with your chosen carriers.
- SPF enables you to analyse the historical data, request quotations for rates, evaluate the responses from carriers, and award transportation business to the carriers
- Automated comparison of responses via optimizer helps better Value (Cost, Service, and Risk) assessment.
- Insights into Projected Spend
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