Improving Productivity – A three-pronged attack on freight inefficiency

By Kim Hassall

Rethinking Network Design

As mentioned in a previous newsletter the actual shape and design of your operational network can deliver efficiencies or significant inefficiencies. Freight network design is a least examined area of freight analysis. Networks, especially depot placements and hub locations for transferring, especially in urban areas can save significant resources.

Poor networks are star networks. For longer distance networks bi-modal hub transfers can save massively.

The figures above can demonstrate an efficiency benefit using two not necessarily large hubs, to do cross city transfers. And If higher capacity vehicles can be used between the hubs considerable kilometre savings could be achieved. Dual hub operations can generate big operational savings for cities whose populations are over 3 million.

Augmenting and restructuring your truck fleet – construction does well

As has been the case with the introduction of the Performance Based Standards framework, that has allowed higher productivity vehicles to be used on approved networks, the construction industry has benefited greatly. The truck and dog trailer combination with either 4,5, or 6 axle trailers represent some 41% of the Australian PBS population. In general PBS productivity benefits have achieved:

  • Urban benefits of 16% – 25%, and
  • Regional & Remote operational benefits of 33% – 42%
Considering using optimisation and simulation resources

Optimisation and simulation software packages are used more often by larger companies. This requires a specialist desk or dedicated resources to learn and run the simulations and optimisation packages.

To maintain the continuity of the expertise required to operate these specialist programs this will often become problematic. Optimisation specialists often get promoted and/or resign to take positions with other business areas in the company or move to a new company. This leaves specialist vacancies in the simulation and optimisation analytic areas. Recruiting and training new staff to operate these programs can be an ongoing resource problem. Many companies do not realise the potential benefits gained by having a permanent operational analytic resource. Even quite basic optimisation packages can deliver 20% resource savings. Actual case studies examined by CILTA reflected savings that ranged, on average, between 15% to 39%. It should be noted that one of the commodity networks that is quite difficult to optimise are the dynamic concrete agitator networks.

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