Logistic Route Rationalization and Optimization discusses rationalizing logistic routes through: 1) Surveying existing routes to collect distance, road, and timing data. 2) Scheduling routes based on average speed limits, branch times, and rest periods for drivers. 3) Planning routing between hubs while considering transshipment possibilities. 4) Determining vehicle needs based on loading patterns along routes. It also introduces a visual decision support system to analyze and optimize 3PL operations through trade lane analysis, load consolidation, route optimization, and exception handling.

1. Logistic Route Rationalization and Optimization
30th March, 2012
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2. Routes Types & Transportation
Branches
Origin Destination Branches
Branches
Origin
Destination Branches
Consignor
Hub Consignee
Origin Destination Branches
Branches
Pickup Delivery
Hub & Spoke – Method of Transportation
National Routes – Operated between hub center to hub center and controlled by one
of the hub
Feeder Routes – are between branch to hub and controlled by branch
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3. Route Designing & Planning
Route Planning Key Activities
•Route Survey – Outcome of this activity is to find out exact distance, existing route
contour, road conditions, timings of RTO/ Check Posts, Railway Crossing Information and
branch information
•Route Schedule- After knowing the route, scheduling is done as per
•Average speed is 35 km per hour
•Intermediate branch touching/check post/ traffic jam timings
•Rest to the driver at the destination site is 8 hours
•The gap between incoming and outgoing should be 6 hours
•Calculation of Idle time
•Routing Plan- As per originating and destination hub along with transshipment hub
possibilities are considered.
•Vehicle Planning- How many vehicles are needed to be deployed ona route and their
type as per loading pattern at different hubs along the route.
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4. Visual 3PL Decision Support System
“Analyze & Optimize
3PL Operations with
enhanced visibility”
 Consignee Site
 Origin Site
 Receipt Site
 Hub Site
 Cross Docking Site
 Load Site
 Discharge Site
 Delivery Site
 Consignor Site
•Trade Lane Analysis •Network Optimization •Vendor Analysis
•Load Consolidation •Freight Optimization •Exception handling
•Sales Force Planning •Route Optimization
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5. Indicative Application of Visual 3PL DSS
• Shippers rationalization: vendor analysis - ABC Analysis, contract
renegotiations, route allocation
• Hub service utilization: CFS vs. CY analysis
• Distribution network cost analysis: optimization, restructuring of cost centres
• Freight optimization: optimal Selection of vendors trade-lane wise to have
minimum freight cost
• Geographical territory wise analysis
• Sales force planning & optimization: in a particular territory, in what
sequence should pick up happens to have min cost and service levels are met
• Cubic meter monitoring, tracking and planning in a territory
• Container wise profiling of corridors and profitability analysis - Container
type and size
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6. Logistic Route Rationalization and Optimization
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