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Nowadays, Transportation & Storage is so much more than just shipping goods from A to B. Demand, freight and volume characteristics are constantly changing. Digitization, rising labor costs, changing regulations, and an aging workforce also put the industry under stress. Data analytics and optimization algorithms are essential tools in helping your organization make the right decisions. In turn, these decisions lead to the best results for your business, your people, and the planet.

The manufacturing industry is experiencing a growing complexity in finished goods logistics, posing significant challenges to companies in reducing costs, improving efficiency, and meeting ever-changing market demands.

Key trends and challenges for the segment include a focus on sustainability, process efficiency, employee and quality engagement, and digital transformation. You can leverage your company’s data to navigate these challenges, gain a competitive edge, lower costs, and improve sustainability.

As a manufacturer, you need to deliver all types of products (SKUs) with their own delivery and demand patterns to your customers, such as retailers or other manufacturers. How do you determine the right amount of each product to deliver at a specific moment in time, maximizing load utilization and minimizing handling time, while also meeting requirements like transport restrictions, demand, inventory levels, and service agreements? Add to that the added complexity of customer requirements, warehouse picking and loading strategies.

In this article, we'll explore the opportunities to create shipments with high load fill through order optimization and the significant benefits it brings. By doing so, you can revolutionize your shipping policy to your customers. Although optimizing on demand level may not be feasible for all your customers, you can start by implementing it internally for inter-company replenishments.

An article by Goos Kant, Managing Partner at ORTEC and Professor of Logistic Optimization.