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

If you wish to know more about our products/services, please request a DEMO or do contact us.

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Ashish Malik   |  Hariharan Subramanian

Image Credit: Freepik

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