1 Factors constraining vehicle utilization 2 Reasons for declining density and stack ability road freight 3 Strategies to improve vehicle utilization 4 Summary... 1 Factors constraining
Trang 1GLOBAL LOGISTIC
MANAGEMENT
LECTURE 5: DECISION STRATEGIES
IN TRANSPORTATION
Trang 21 Factors constraining vehicle utilization
2 Reasons for declining density and stack ability road freight
3 Strategies to improve vehicle utilization
4 Summary
Trang 31 Factors constraining
vehicle utilization
Demand fluctuation: variability of
demand over time is one the main
causes of underutilization of vehicle
Just in time delivery: the
replenishment of supplies in smaller quantities more often within a short time tend to depress vehicle load
factor
Unreliability of time schedule: where schedules are unreliable, it is hard to arrange backhaul or more complex
collection and delivery routes
Trang 41 Factors constraining
vehicle utilization
Vehicle size and weight restrictions: for example, some vehicles still have
space but already reached maximum
weight.
Handling requirements: many company sacrifice vehicle utilization for handling efficiency.
Incompatibility of vehicles and
products: some products needs special handling to be transported by vehicle E.g petrol, gaz
Trang 51 Factors constraining
vehicle utilization
Health and safety regulations
Capacity constraints at company premises: often the size of load is constrained by the available storage
Lack of knowledge of back-loading and load consolidation opportunities: many of these opportunities are missed because carriers are simply unaware of them
Poor coordination of the purchasing, sales and logistics functions: opportunities for
back-loading are hardly discussed in trade negotiation between two companies
Trang 62 Reasons for declining
density and stack ability
road freightChange in nature of the product e.g product becomes lighter because of new material
Increase in packaging
Greater use of unitized handling
equipment
Declining rigidity
Order picking of palletized loads
Tightening health and safety
regulations
Trang 73 Strategies to improve
vehicle utilization
Increase return loading
Logistical initiatives
Use of freight procurement services: some agents are more efficient at freight
procurement service
Installation of vehicle tracking systems:
advances in IT and telecommunication
support the back-loading of truck
Reverse logistics: an increasing proportion of products is travelling back along the supply chain for repair, reuse, recycling or
manufacture
Trang 83 Strategies to improve
vehicle utilization
capacity
as much as possible, eliminate waste
of space in delivery.
design must allow maximum carry
capacity Some special products
must have specific design vehicle e.g petrol, gas, chemicals
Trang 93 Strategies to improve
vehicle utilization
Use more space-efficient handling systems and packaging
loading method for specific product.
modules of varying height
packaging: food cans in square can save more space in round shape
Trang 104 Summary
Transport optimization is now being used to describe efforts to maximize vehicle
utilization
Efficient transport optimization can save
fuel cost, driver shortages, traffic
congestion and environmental impacts
Many factors constraint the vehicle
utilization in daily practices
Efficient transport strategies can improve
transport utilization by maximizing the
available carrying capacity and use of space efficient handling system