Improving operational efficiency in transportation: the Transcoop case study

Proof of Concept (POC)

The objective of the study was to quantify the optimization and savings potential, both in economic and organizational terms, for several hypothetical scenarios. This allowed the identification of two main levers for action:

1. Fixed-round optimization: analyzing and improving fixed rounds while leaving existing constraints unchanged (i.e., not changing, for example, the delivery windows historically used with the customer).

2. Changing constraints: Evaluate the impact of strategic and dynamic planning by changing delivery windows or production mix to increase operational efficiency.

Cargoful software implementation

Following the POC, which identified the potential for improvement by extending delivery windows and replacing fixed rounds with dynamic rounds, the Cargoful software solution was implemented. Today, the system is used to manage deliveries to the supermarkets of one of Transcoop's major customers, a large retailer in central and northern Italy. 

Before:

• The GDO customer gave instructions to the warehouse, which then assigned fixed rounds to Transcoop, resulting in a rigid schedule with little room for optimization.

Now:

• GDO customer sends transport orders directly to Transcoop.

• Transcoop schedules the orders using Cargoful's software.

• The warehouse prepares the order load based on the delivery planning done by Transcoop.

Implementation, the main challenges

The implementation of the Cargoful software across Transcoop's planning required a number of targeted adaptations to the customer's needs and complex transportation management network. The main challenges faced and the solutions adopted are described below:

1. Transition from static to dynamic planning: The transition from rigid to more flexible planning required a significant change in operational management. In particular, the modus operandi of the drivers and employees involved had to be changed. In fact, the increased flexibility and collaboration required were the levers behind a change management path that allowed for a more flexible setup for both the warehouse and the drivers.

2. Bulk scheduling with "automations": With Cargoful's "automations" tool, it was possible to differentiate scheduling needs, for example, distinguishing between morning and afternoon rounds, scheduling rounds with special needs or limited to certain days of the week. An approach that provides greater operational flexibility and faster planning.

3. Access restrictions and intermodal deliveries: It was critical to define what types of vehicles could serve certain destinations. This involved both evaluating access restrictions at delivery points and modeling special windows for deliveries involving a ferry (such as in the Venice area).

Today, Transcoop uses the Cargoful scheduling system on a daily basis. In addition to simplifying and speeding up transportation management, this implementation has resulted in a significant reduction in mileage, between 15% and 20%. The transition from rigid to more dynamic scheduling has not only resulted in significant cost savings, but has also improved the service provided and the speed of scheduling activities.

Conclusion

Using a quantitative approach and based on actual historical data, Cargoful can accurately assess the impact of a change, even a significant one, to the current operating model. The results are refined, shared and iterated with the client, with a co-design strategy to meet the client's needs and generate targeted results based on the specific case data.

In the Transcoop project, the analysis of the results first led to a report that evaluated and estimated the economic impact of the different alternatives proposed.  The sharing of the various results then provided management with the tools to make informed decisions and decide to implement structural changes to their processes, including the introduction of the use of Cargoful on a daily basis. Importantly, the result, driven by the introduction of a new technology, was also achieved thanks to the great cooperation of all the actors in the supply chain: warehouse, carrier and supermarket.