Supply chain modelling using world leading software

A distributor of fuel to domestic and industrial premises nationwide asked us to review their vehicle routing and scheduling methods. As their service offer was to prevent customers running out of fuel, they were in the unusual position of being able to determine the frequency and day of delivery. However, delivering too frequently would lead to high transport costs, but delivering too infrequently would increase the risk of customers running out of fuel.

We reviewed their current methods and analysed sample data using the Paragon route planning software and our delivery costing model. We assessed the benefits and pitfalls of both computerised vehicle scheduling and manual methods. The recommended method was computer assisted scheduling, where a computer system displayed the potential customers and used special graphics to provide information about them. This allowed customers to be combined into routes, while the load planner made the final decision on order selection and routing. The method was implemented and resulted in significant savings.