Shipment Cost Simulation
Evaluate your Network Design with realistic transportation costs.
What it is
- The Shipment Cost Simulation App is a great tool to calculate standard and generic rate model for validating scenarios on a transactional basis.
- Generic cost rate engine works in all pan-European countries.
What it delivers
- The base rate contains more than 250 distance classes and more than 500 fill rate classes.
- Every shipment can be adjusted according to your today’s level of costs.
What are the benefits
- Validate every future scenario based on generic pan-European overland rates.
- Simulate costs changes for different scenarios and make best decisions regarding your network design.
Shipment Cost Simulation Case Study
Evaluate your Network Design with realistic transportation costs.
Without any knowledge of transportation costs in new markets, the company needs to decide whether to use a centralized or decentralized warehousing system.
A step-by-step way from potential shops’ locations in new markets to an ideal warehousing system.
By simulating transportation costs of different scenarios in Shipment Cost Simulation App, company chose ideal warehousing system.
Reduced transportation costs by avoiding international cross-docking shipments, stronger consolidation of the flow, increased service level.
Supply Chain Apps Case Study: Shipment Cost Simulation
The Challenge
Supply Chain Apps Case Study: Shipment Cost Simulation
The Journey
Supply Chain Apps Case Study: Shipment Cost Simulation
The Solution
Your Title Goes Here
Based on the shops’ locations in new markets and warehouse locations, we created a couple of scenarios. First, we calculated shipment costs from a centralized warehouse in Lille to all shops’ locations. These costs are used as a base and compared with different decentralized warehouse options.
We simulate scenarios with distribution centers in Lille and Lyon, then in Lille, Lyon and Bordeaux, and in Turin, Duisburg and Barcelona. When compared with a base, scenario 03 generates the most savings (22,37%).
Based on this, the company decided on using a decentralized warehousing system with distribution centers in Turin, Duisburg and Barcelona.
Supply Chain Apps Case Study: Shipment Cost Simulation
Benefits
Your Title Goes Here
- Reduced transportation costs by avoiding international cross-docking shipments.
- Stronger consolidation of the flow to the final cross-dock points where the shipments will be distributed.
- Increased service level.
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