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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 Paragon 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, with the load planner made
the final decision on order selection and routing. This system
has now been implemented and is resulting in significant
savings.
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