Optimization tools do not provide what they promise. Why?

Home » Optimization tools do not provide what they promise. Why?

Optimization and simulation software seems to be the best that is available in supply chain efficiency. They offer options and insights to implement logistics in the most optimum way by discovering and eliminating inefficient points that might be overlooked. It is a significant subject for companies for decreasing their costs.

However, when benefit is in question, these technologies might not be able to provide the savings they are committed to. Reasons may vary; inappropriate business model, the inability of the systems to exchange accurate information, having too many exceptions and the most common one is a large number of manual data flows.

For an accurate optimization & planning, the key is data. It is obvious that the most valuable asset and tool for us all is data. The first step in optimization and simulation is to analyze it. Unless you have some valid information in hand and automated data flow, you can optimize or simulate only according to your ideas or predictions; which means that you can’t go beyond theory.

For instance; many companies do not know how many kilometers were driven to deliver/receive a shipment. They do not have sufficient information about the success rate of deliveries, on-time deliveries, non-conformity rates or return logistics rate which is vital for the industry.

Of course, they might have some ideas about these important details; nevertheless, it is a fact that they do not have the exact numbers automatically.

At the moment, either you receive the information very late, very little or you don’t receive it at all! The result is that you don’t get the real benefit of the optimization tool, you invested and moreover you need to hire more people to get the correct data for the optimization. You will end up with more cost…

Benefiting more from optimization tools and reducing the cost really possible?

You need to focus on gathering information automatically in the most simple way possible! When the goods were picked up, how many kilometers were driven for the shipment, was it on time/late and what’s the real-time location of all the movements!

Simply Deliver offers “plug & play” solutions that you can easily add on existing solutions (ERP, TMS or back office system) within a few hours. You can use this solution independently to retrieve all the information you need for getting the best optimization and simulation.

Either it’s your truck, charter’s or you might even not know who the driver; Simply Deliver platform connects all of them for you! Once you have this, you’ll get all the movement information real-time, will be able to gather POD or non-conformities directly without any restriction and delay.

Would you like to increase your efficiency, cut-cost and have a real optimization in your supply chain? Then we’re here to assist you to realize that in the most affordable, fastest and simplest way.