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Case Study:

Process Optimization / Global Equipment Manufacturer

Productivity-bottleneck-due-to-complex-demand-fulfillment-process-teranalytics

Optimizing cargo loading to reduce distances travelled through a network

National distributor uses AI to optimize transportation logistics while keeping a lean operation

Challenge:

Productivity bottleneck due to complex demand fulfillment process

When SKUs come in geometric boxes, cargos are easy to fill: no brainer, no analytics. The majority of products, however, do not come in boxes and have transportation constraints that make them incompatible with simple stacking: irregular shapes, transportation constraints, incompatibilities with other products, and more. When hundreds of SKUs are involved, mixing fast and slow movers, mixing requirements and timeline, an optimum organization is almost impossible to achieve by sole human intuition and productivity suffers as well as customer relationship.

Solution:

Constrained-based optimized loading algorithm generates repeated cost savings while always fulfilling orders

Teranalytics listened and learned about all the customer constraints, then tailored its optimization algorithms to the specific problem at hand. The result is an interface whose back end runs in 15 seconds, always provides an optimum solution, has its inputs/outputs personalized to the customer process, and replaces an 8-hour weekly manual process.

  1. 3-month project with Teranalytics
  2. Matching input and output processes so the solution seamlessly inserts itself into existing operation
  3. Advanced optimization back up, accessible to any user via a simple and intuitive front end

Results:

Algorithm slashed load mixing from 8 hours to several seconds, with 100% optimality – improving productivity 93% 

Teranalytics created and deployed a personalized tool that allows the company to optimally load its trucks as function of order sizes, date constraints, as well as exclusion between similar SKU. The optimization engine has also been customized to fit in the company’s existing process, taking inputs as provided by the customers and producing outputs that can be directly passed on to downstream processes. The time spent on processing a customer was reduced by 95% and the company can focus on growth rather than on fulfilling existing customers.

1. Shipping solution always optimally satisfies customer constraints

2. Risk Mitigation: process is now internalized to company operation and can be run by anybody, instead of the risk with a single expert

3. Replacing manual work with automated optimization saved time, prevented errors, and reduced costs associated with sub-optimal loading.

Client Feedback:

“Teranalytics eliminated the time and complexity associated with determining the best load for our trucks, delivering significant, measurable benefits.”

— Logistics Director