Ten basic principles of optimizing traditional enterprise logistics storage system

Ten basic principles of optimizing traditional enterprise logistics storage system

For most enterprises, logistics system optimization is the most important business opportunity to reduce the total cost of supply chain operation. However, the optimization process of logistics system not only requires a lot of resources, but also requires great efforts to overcome difficulties and careful management. Below, I will share with you the ten basic principles of optimizing the traditional enterprise logistics and warehousing system, hoping to help you!

Data? Data must be accurate, timely and comprehensive.

Optimization process of data-driven logistics system. If the data is not accurate, or the relevant data can not be input into the system optimization model in time, then the resulting logistics scheme is doubtful. For the logistics optimization process that must produce an operable logistics scheme, the data must also be comprehensive and sufficient. For example, if the size of the truck limits the loading, it is not enough to use the weight data of each shipment.

Integration? System integration must fully support the automatic transmission of data.

Because for the optimization of logistics system, a large number of data should be considered at the same time, so the integration of the system is very important. For example, to optimize the daily delivery process from the warehouse to the store, we need to consider data such as orders, customers, trucks, drivers and road conditions. The method of manual data input, even if only a small amount of data is input, will be too time-consuming and error-prone to support system optimization.

Expression (delivery)? System optimization scheme must be expressed in a form that is easy to implement, manage and control.

The solution given by logistics optimization technology is unsuccessful, unless the field operators can implement it, and the managers can confirm that the expected return on investment has been realized. Field operation needs simple and clear instructions, which should be easy to understand and execute. Managers demand that the key benchmark information of the optimization scheme and its implementation effect in terms of time and asset utilization be more comprehensive and centralized.

Target? The set goals must be quantitative and measurable.

Setting goals is a way to determine our expected wishes. To optimize something or process, we must determine how to know that the target object has been optimized. Using quantitative objectives, the computer can judge whether one logistics plan is better than another. Enterprise management can know whether the optimization process can provide an acceptable return on investment. For example, what might be the goal of the delivery work? What is the minimum sum of daily shared asset use cost, fuel and maintenance cost and labor cost? . These cost targets are both quantitative and easy to measure.

Models? The model must faithfully reflect the actual logistics process.

Modeling is a method to transform logistics operation requirements and constraints into something that computers can understand and process. For example, we need a model to reflect how goods are loaded onto trucks by combination. A very simple model, such as the total weight or volume delivered, can truly reflect the loading requirements of some goods, such as bulk liquid goods. However, if a new car is loaded on the trailer with the total weight or total volume model, the model will be invalid because it cannot fully reflect the actual logistics situation. For example, with? A car that can carry 45,000 pounds. Not suitable for describing the cargo capacity of trailers.

Because the number of cars a trailer can carry depends on the shape of the car, the structure of the trailer and other factors. In this case, if a simple weight or volume model is used, many computers will not be able to actually load the car, but in fact, a better loading scheme will be abandoned because the computer thinks it is not suitable. Therefore, if the model can't truly reflect the loading process, then the loading scheme given by the optimization system can't be actually implemented or economically uneconomical.

Return (ROI)? The return on investment must be verifiable, and the total cost of technology, personnel and operation must be considered.

The optimization of logistics system is never a free lunch. This requires a lot of technical and human resources investment. To confirm the investment return of logistics system optimization, we must grasp two points: first, honestly estimate all optimization costs; The second is to compare the solutions given by optimization technology with benchmarking alternatives one by one.

When calculating the cost, enterprises strongly underestimate the operating cost of using logistics optimization technology, especially the purchase of enterprises? For amateurs to develop and use themselves? In the case of PC-based software packages. At this time, the enterprise is required to have a well-trained user team and development support personnel to debug the technical system in the actual operation process. In this case, the actual annual operating cost of effectively using logistics optimization technology is rarely lower than the initial cost of technology procurement (such as software license fee and tool fee). ). If the total cost of the logistics optimization solution drops in the second year, it is likely that the quality of the solution will also drop proportionally.

When calculating the return, to determine the use effect of the logistics optimization technology system, three things must be done: First, before implementing the optimization scheme, determine the benchmark state according to the key performance indicators. The second is to compare the results of the implementation of the logistics optimization technical scheme with the benchmark state. Third, evaluate the performance of logistics optimization technology system regularly.

To accurately calculate the return on investment, we must adopt good methods to determine the benchmark state, have a thorough understanding of the input technology and labor costs, evaluate the actual improvement degree, and continuously monitor the performance of the system. However, because the performance data are rarely directly available, the monitoring process needs to be continuously implemented, and almost no company can really understand the actual effect of its logistics optimization solution.

Algorithm? The algorithm must use the unique problem structure flexibly.

The biggest difference between different logistics optimization technologies lies in the different algorithms (usually the best logistics scheme can be found with the help of computer process processing methods). An irrefutable fact about logistics is that every logistics optimization technology has certain characteristics. In order to give a logistics optimization scheme in a reasonable time, it is necessary to further develop optimization technology with the help of optimization algorithm. Therefore, the key question is:

(1) The specific problem structures of these different logistics optimization technologies must be known and understood by every analyst who designs a logistics optimization system.

(2) The optimization algorithm used should be flexible, so that it can be used? Adjust? To a state where these specific problem structures can be used. There are many possible solutions to the logistics optimization problem (for example, there are 1 trillion possible loading combinations for delivering 40 tickets of LTL freight). If we can't make full use of the specific problem structure to calculate, it means that either the algorithm will give a plan according to some unreliable approximate calculations, or the calculation time will be extremely long (perhaps infinitely long).

Calculation? The computing platform must have sufficient capacity to give an optimization plan within an acceptable time.

Because there are many possible solutions to any real logistics problem, any problem with a certain scale requires considerable computing power. Such computing power should enable optimization technology to find the best logistics scheme and give the best scheme within a reasonable time. Obviously, for the optimization technology running in the daily execution environment, it must give the logistics optimization scheme within a few minutes or hours (instead of spending a few days of calculation time). Using powerful cluster service and parallel structure optimization algorithm using multiple computers at the same time can give a better logistics optimization solution faster than using a single PC or an algorithm based on workstation technology.

People? The person in charge of logistics system optimization must have the leadership and technical expertise needed to support modeling, data collection and optimization scheme.

What is optimization technology? Rocket science? Do you hope the rocket will run well after launch? Rocket scientist? It is impossible to maintain its state. These experts must ensure that the data and models are correct and that the technical system works according to the designed state. The reality is that without the organization and management of people with appropriate technical expertise and leadership experience, complex data models and software systems cannot operate normally and get the necessary support. Without a lot of their work, it is difficult for the logistics optimization system to achieve the expected goal.

Process? Business processes must support optimization and have the ability of continuous improvement.

Logistics optimization needs to deal with a large number of problems in the operation process. The change of logistics objectives, rules and processes is the normal state of the system. Therefore, not only the data monitoring method, model structure and algorithm of the system are required to adapt to changes, but also they are required to seize opportunities and promote system changes. If we can't monitor, support and continuously improve the logistics optimization technology in the actual business operation process, it will inevitably lead to the failure to give full play to the potential of the optimization technology, or it will only become? Decoration? .

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