Logistics simulation improves resource utilisation level

3D Simulation software for Logistics

What does logistics optimisation really mean?

It is not unusual for a logistics function to represent up to 55% of your organisations total cost. Logistics managers are constantly under pressure to control these costs to arrive below their operating budgets and always identify further cost out opportunities. These cost out savings are typically improvements through productivity and efficiency gains plus cost outs from vendor negotiations on either products or services. As this traditional approach can deliver genuine cost out opportunities, our experience shows that by leveraging new supply chain technologies like 3D Simulation software for Logistics, further supply chain cost outs and productivity gains can be realised without impacting on your existing order fulfilment process.

3D simulation software for logistics is used to develop a mirrored flow of your entire logistics operation, from a single warehouse to a number of large scale distribution centres across the country. As optimisation is the focus, we develop a complete 3D simulation model that incorporates all processes, resources, time and costs that are representative of your existing operation.

This initial phase provides a building block for running various simulation scenarios where each of the inputs being process, resource, time or cost are modified to produce an outcome that is close to your final expectation. The level of model complexity is limited to the extent to which you wish to fully represent the entire operation or concentrate on a smaller operational function such as recieving or despatch.  

Why simulate your logistics function?

Simulation has the ability to predict outcomes by using a complex set of variables that drive the logistics simulation model to output meaningful and realistic scenarios. Each scenario is delivering your business a different value proposition that enables your logistics function to be more responsive to variability. Your logistics model changes to manage this variability more effectively as you are able to select any resource, area or equipment and see the changes in utilisation, cost of time .
Any system that can be defined using equations can effectively be simulated. In a dynamic simulation, behaviour changes are impacted by inputs over time, these changes are analysed and further improved upon by changing the simulation model. The objective is to minimise inefficiencies throughout the entire logistics function.

Benefits of logistics simulation for your business

  1. Real time operational decision making capability
  2. Ability to change your supply chain model to support variability
  3. Dynamic changes resource levels to support demand patterns
  4. Visual representation provides greater awareness of your supply chain
  5. Identifies the real cost to serve of a supply chain model
  6. Change management is improved through virtualisation

Logistics simulation improves resource utilisation level by allocating your staff to specific tasks that are required to be completed inorder to support the order fulfilment process for your customer. This is a balance of value add versus non value add with your resources