Savings of up to 20% in transportation costs can be achieved with the right methods. Moreover, performance can be increased simultaneously!
For years, we have been keeping track of current logistics processes and technologies, ensuring that our customers have the most efficient transportation operations possible with our engineering and software capabilities. For us, transportation management is not just about managing trucks. By translating your vision and business strategy into tangible logistics language, we design a transportation infrastructure that meets your needs with maximum efficiency and minimum cost. We optimize your processes in line with your vision and strategy and support you in selecting the right service providers to support them.
End-to-End Cost Optimization
Determining the service level that will provide a competitive advantage and optimizing supply chain costs end-to-end to align with it means increased profitability for all companies.
Regardless of the sector, supply chain costs constitute a significant portion of the total cost. Moreover, this cost component is mostly composed of variable elements, making rapid, tangible savings potential available. Dijitalis evaluates all activities across the value chain and identifies cost optimization opportunities. By closely examining your processes and conducting big data analyses on your historical data, it is possible to identify improvements that will save costs on both macro and micro scales. Dijitalis has typically provided the following benefits in its projects:
- Reducing total supply chain costs,
- Reducing procurement and inventory costs with supplier optimization,
- Reducing supply chain management and planning costs,
- Reducing transportation costs by improving working conditions with logistics service providers,
- Improving transportation cost and delivery performance by right-sizing the vehicle fleet.
Making Decisions on Transportation Strategy
As transportation costs rise, logistics issues come to the management board's table more often. Permanent benefits can be achieved with the implementation of correct solutions.
The first solutions that come to mind may be to work with a new 3PL or to purchase IT software to improve the visibility and management of operations. However, taking these steps without reviewing the overall structure may prevent the full potential savings. The general logistics policy may be a continuation of long-standing habits, and the automation of a logistics infrastructure that no longer adapts to current conditions may not provide the expected benefits. A comprehensive logistics engineering perspective should be adopted. Dijitalis has a methodology for determining your transportation strategy correctly. This methodology includes detailed analyses under the following headings:
- Transparent and detailed analysis of current transportation costs and resources,
- Mapping the current situation of the existing transportation strategy and management rules,
- Comparing the current situation with industrial benchmarks and identifying differences,
- Designing a future state map for a more efficient logistics management,
- Identifying actions for quick implementable potential improvements,
The application of this methodology provides the following benefits in the short term:
- Consolidation and optimization of different transportation structures and redundant processes,
- Evaluation and adaptation of new distribution modes,
- Renegotiation of logistics tenders and ensuring appropriate supplier matching,
- Optimal selection of loading vehicles and transportation methods
For longer-term and sustainable gains, Dijitalis continues to provide continuous and dynamic support:
- Commissioning of necessary systems for strategic, tactical, and operational transportation planning,
- Redesigning logistics management processes,
- Writing the requirements document for an integrated transportation management system (TMS) and identifying the appropriate solution
E-commerce Distribution
Designing the entire distribution system as a whole without compromising service levels is the key to minimizing distribution costs.
Traditional product distribution networks do not provide the flexibility and speed required for e-commerce. If the existing structure is strained to provide this, costs escalate rapidly. Shortening delivery times, increasing product variety, and constantly changing customer habits have made e-commerce distribution increasingly complex.
The first condition for conducting e-commerce distribution sustainably with high performance and lower costs is to address the entire distribution system comprehensively and optimize it as a whole with handling, inventory, and transportation components. Through end-to-end e-commerce planning, Dijitalis has provided the following benefits to its customers:
- Reducing transportation costs,
- Shortening delivery times for customers,
- Acquiring omnichannel distribution capability,
- Increasing distribution network flexibility and ensuring quick response,
- Increasing product availability and reducing inventory costs through inventory optimization across the entire distribution network,
Dijitalis, which provides complex e-commerce network design and optimization services, also supports the implementation and commissioning process.
3PL Selection
Planning and managing tender and contract processes meticulously are necessary to work with a service provider that offers high reliability at the right cost.
Companies evaluate logistics service providers through tenders conducted at regular intervals. However, most companies cannot structure this tender process to meet current conditions and future expectations. Before selecting a logistics service provider and accepting their work proposal, the company must question how optimal its own logistics network is.
The selected logistics service provider should offer quality service that is compatible with current needs at competitive prices. Selecting the right service provider requires detailed industrial knowledge, accurate comparisons, bargaining, and contract experience. Dijitalis' senior consultants have worked in key industries and logistics companies in different sectors and support you with this experience. Experienced senior consultants in transportation, storage, and value-added logistics services provide the following benefits:
- Close to 20% cost savings,
- Improvement in overall performance with delivery reliability, information sharing, and increased service levels,
- Providing performance incentives for logistics service providers with contracts that pay proportionally to success,
- Comparing all cost items transparently with each supplier's cost model,
- Preparation of the correct and secure contract scope,
- Efficient management and completion of the tender process
During supplier negotiations, Dijitalis simulates different logistics business models and tender scenarios with analytical models it establishes, allowing for comparisons of all cost items that will arise. With these methods and tools, Dijitalis can support you in all your logistics service procurements.
Vehicle Loading and Routing Optimization
Inbound and outbound transportation account for almost half of the total supply chain cost. Dijitalis provides logistics planning software that reduces transportation costs.
Today's conditions put great pressure on prices and quality, while simultaneously requiring transportation planners to deliver products to their destinations as quickly as possible. Planners must make decisions much faster and more accurately than in the past. For example:
- They should reduce logistics costs (in terms of kilometers, time, and assets) through better vehicle loading and routing,
- They must respond instantly and accurately to events that may occur (order changes, traffic congestion, vehicle breakdowns, etc.),
- They must continuously and accurately meet the varying needs of each customer (goods acceptance times, ramp and equipment types, etc.),
- They must provide reliable delivery times to customers and be able to keep their promises,
- They must consider the working and rest hours of drivers and select the right type of vehicle for each customer and route,
- They must be able to predict the workload for today and the future accurately.
As the number of customers and orders increases, and as warehouses and fleets grow, meeting all these conditions successfully becomes increasingly difficult for companies. In such cases, the following questions are often asked:
- How do I ensure timely delivery to the right place for high customer satisfaction?
- And at the same time, how do I achieve high vehicle occupancy and fuel savings?
Thanks to the software offered under the "Advanced Logistics Planning" umbrella by Dijitalis, strategic-level decisions, such as distribution strategy, warehouse and distribution center locations, fleet size, and vehicle types, can be made most accurately with the support of data-based analytical methods.
At the tactical level, which involves shorter-term planning, handling, storage, and transportation capacities are balanced in line with strategic plans determined against seasonality, customer, and industry trends.
At the operational and real-time level, daily operations are planned under the dynamic conditions of the business world (traffic, weather, absent employees, vehicle breakdowns, last-minute order changes, etc.) to achieve the highest compliance with tactical objectives. Dijitalis supports the successful implementation of vehicle loading and routing optimization software required for daily transportation planning.
