Part-2: Optimize Resource and Route in the FMCG Industry using SAP TM

By: Krypt Team - August 16th, 2019

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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