The route was rebuilt by a neural network

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It is well known that transportation costs account for a significant, if not large, share of costs in most supply chains. Of course, there is a lot of waste at this stage.

Despite the fact that the transport component has recently been digitalized in one way or another, in many companies logisticians still build routes for the movement of goods manually. This takes a lot of time, and the routes themselves are template-based, ineffective and very expensive.

The reason is that delivery intervals are not taken into account correctly, customers do not receive goods on time. According to statistics, 15% of transport routes are unnecessary, which leads to unnecessary gasoline consumption, load on transport, payment for inefficient work of drivers.

In total, due to inefficient content writing service logistics, Russian companies lose about 800 billion rubles a year

At the same time, this industry has changed a lot in the last 10 years. For a long time, there were two main types of logistics organizations on the market: the first ones provided high-quality service for a lot of money, the second ones allowed saving on transportation costs, but the quality of their services was also low.



Now, however, customers have become much more demanding of the level of service and its cost: high quality at low prices is needed. This means that the profitability of logistics is greatly reduced.

The fact is that today no one wants to wait for goods - neither individuals nor businesses. The pandemic has spurred the development and transformation of food delivery, and the shift has been very significant for this segment, as well as for most others.

Just a couple of years ago, we were talking about delivery the next day or even a couple of days later at best, but now every minute counts, even if the consumer has no urgent need for it. It is clear that grocery retail, as the most innovative and highly competitive industry, is moving in this direction ahead of all others, but it is obvious that other segments are already moving in the same direction.

The norm is now considered not just to deliver goods exactly on time, but to deliver them within a specific time interval, day after day

So, transport companies and logistics departments face a difficult task: to find tools and methods that will allow them to respond to this market challenge.

SOLUTION OPTIONS

One such tool is lean logistics, or Lean Logistics. This concept focuses on eliminating unnecessary processes, reducing the time spent at each stage through organizational measures, which leads to a reduction in costs throughout the supply chain.

The mechanism of this tool looks like this schematically. It is necessary to analyze all processes related to logistics. Assess whether there are those where the most critical losses occur. After that, rebuild them in such a way as to avoid these losses.

We are talking about abandoning the rare delivery of large volumes of cargo in favor of frequent delivery of small batches, joint use of transport resources, consolidation of cargo and restructuring of loading and unloading principles. In any case, each enterprise will have its own set of changes.

Another option is to use digital solutions. Incidentally, it does not contradict the principles of lean logistics at all, but can complement it. In particular, relying on artificial intelligence technologies as the most effective.