Ten Principles Of Logistics Operation Optimization

1, goals must be quantified and measured.

If you want to succeed, you must have a clear goal. In order to optimize, you must know how to be optimized.

Quantitative objectives make it possible to use computers to decide whether a logistics plan is superior to another. Managers can measure whether there is a return on investment in the optimization plan.

For example, a courier company may target the daily minimum maintenance cost, fuel cost and labor cost, which are easy to quantify and measure.

2, the model must truly represent the logistics process.

The model pforms the optimization requirements and constraints into a language acceptable to the computer.

For example, we need

If a weight and volume model is used to represent the shipment of another new type of vehicle, the model is distorted because it does not really represent the actual shipment.

If the model can not represent the real situation, the whole optimization measures will be impractical and inefficient.

3, data must be accurate, timeliness and easy to understand.

Data guide the whole optimization process, if

4, integration - must support all data conversion.

Data reconciliation is very important, because a lot of data should be collected around logistics optimization.

For example, optimizing the pportation process from warehouse to store requires data such as orders, customers, vehicles, drivers and road information. Some of these large amounts of feedback data are useless data, some are wrong data, and need to be integrated to filter out effective data related to optimization.

5, communication - the optimization plan must be conveyed to executives and managers in a certain form.

Only providing logistics optimization solutions without specific implementation can not be successful. Only providing management to the implementation of the plan without specific implementation is not a success. Only providing management to the implementation of the plan and finally achieving the desired return on investment is a success.

Therefore, the optimization plan must be communicated to managers and executors in the simplest and clearer way. Managers need more comprehensive information to carry out the refurbishment plan, in which the network is an important medium for information pmission.

6, algorithm -- we must solve individual problems independently.

The biggest difference between logistics optimization technology lies in the algorithm of computer seeking logistics optimization.

There is no doubt that every type of logistics problem has its own characteristics. We must develop relevant computer algorithms for each of the different problems to provide the best optimization plan.

However, it should be noted that: (1) the algorithm structure must be recognized and understood by each logistics optimization system; (2) the optimized algorithm should be flexible and be able to coordinate with other systems when used.

There are many possible solutions to logistics optimization problems. For example, there are 100000000000 possible ways to reduce freight capacity.

The use of unsuitable algorithm structure means that the computer selection scheme may be based on some unreliable data that violate the optimization principle, or the operation time of the whole scheme is too long, and even the scheme can not be obtained.

7, computing operation platform must calculate the optimization plan in effective time.

Since every practical logistics problem has thousands of optimization schemes, powerful computers are needed to support operations. It can ensure that the best logistics optimization scheme can be calculated in a reasonable time.

Obviously, due to the rapid implementation of optimization technology in the actual environment, it is necessary to get the best solution in a short time.

Compared with a single computer operation, a powerful computer network platform can provide better and faster solutions.

8, talents - professional talents must dominate, technical experts need a large number of models, data and optimization tools.

Optimization technology is rapid, but if there is no professional technical personnel to master it, it will not achieve the desired results.

These technicians can ensure the correctness of data and models, and the technology can be put into practice and run according to the design.

It is unrealistic to hope that only through data collection, model analysis and software analysis without the support of technical personnel, they lead knowledge and experience.

9, process - the operation of business processes must support optimization and ensure room for improvement {page_break}

Logistics optimization is a process of continuous accumulation and change, because the objectives, rules and processes of logistics are not invariable.

When changes come, not only data, models and algorithms need to be changed, but also potential business processes need to consider how to change new ones.

If business processes can not support optimization or guarantee the upgrading space of logistics optimization, the optimization technology can not be effectively utilized or even useless.

10, investment return - investment return must take into account the whole technology, talents and implementation.

There is no free lunch in the world. Logistics optimization requires a lot of capital, technology and talents.

(1) evaluation of the overall optimization value;

(2) optimize the comparison of schemes and optimize the choice of technology.

In terms of cost estimation, when the company has a ready web platform and application software, it is generally too low to estimate the cost of logistics optimization technology, which requires professionals to complete.

There are few successful cases in which the cost of logistics optimization technology is lower than the initial cost of technology.

If the total cost of the initial logistics optimization can be controlled, the cost of the whole scheme will generally be reduced.

In budgetary return on investment, there must be a good way to decide a baseline, measure the value of technology and the role of talents, measure the effect of improvement, and then consider further optimization.

Because of the timeliness of data, the implementation process needs constant attention. No company can predict exactly what effect their logistics optimization can achieve.