A Route-to-market (RTM) review is the process of combining transport optimisation software with operational insights to identify opportunities within the current way of working. Adding what-if scenarios allows for the evaluation of cost-to-serve impacts from different operating alternatives (e.g. delivery frequency, time windows, fleet network scope, etc.)

1. Property
Logistics
Project Management
Route-to-Market Strategy
The hidden gem in your transport operation?
By Tim Charlton

2. About me.
TIM CHARLTON – Senior Consultant
Focused on delivering logistics transformation & bottom line uplift for organisations across Asia!
Tim Charlton is a senior consultant at XAct Solutions who partners with leading organisations in Asia. Tim has
worked across a broad range of industries, such as Medical, Airport Logistics, Food & Beverage, Government,
Industrial, Agriculture, 3PL Logistics, Food Services, FMCG, Retail and Fast Fashion.
His natural curiosity to reengineer processes that transform logistics networks, has allowed him to craft a
unique career. Over the course of 10 years he has held multiple roles across the supply chain including as a
shipper, logistics service provider, receiver and now as a supply chain consultant.
Tim focuses in the following areas of logistics transformation:
Tim's background is supported by a Master of Strategic Supply Chain Management from the University of
Technology Sydney (UTS), where he graduated top of class and was placed on the Dean’s Merit List for
academic excellence. He also holds a bachelor in Logistics and Supply Chain Management from the Royal
Melbourne Institute of Technology (RMIT).
MBA (SCM), BBus (Log. & SCM)

3. What is it?
A Route-to-market (RTM) review is the process of combining
transport optimisation software with operational insights to
identify opportunities within the current way of working.
Adding what-if scenarios allows for the evaluation of cost-to-
serve impacts from different operating alternatives (e.g.
delivery frequency, time windows, fleet network scope, etc.)
There are typically three phases:
1. Diagnostic Analysis
2. Route Optimisation
3. Operating Model Design

4. Transport Optimisation Software
• Software selection
➢ ideally one that provides the capabilities for strategic,
tactical and executional analysis and modelling
• Initialise modelling setup and configuration
Operational Diagnostic
• Data collection (e.g. geo-codes, orders, etc.)
• Assessment of the current operations
• Confirmation of constraints (e.g. time windows)
• Finalise what-if scenarios (e.g. reduced delivery frequency)
Phase 1 - Diagnostic Analysis
“I prefer the use of a visual software, as it allows you to
take everyone from logistics and commercial managers
through to truck drivers on the route-to-market journey.”

5. Phase 2 - Route Optimisation
Models
• Baseline calibration modelling
➢ shows price opportunity vs. industry benchmarks
• Baseline optimisation modelling
➢ shows the performance benefit via better delivery sequence
• Adjust baseline input parameters and data for scenarios
• Conduct scenario what-if modelling
➢ shows changes in cost-to-serve through various alternatives
For each model:
• Design the optimal captive and subcontractor fleet mix
• Develop bottom-up cost models (inc. supervisors, drivers,
fleet, etc.)
“This phase is the most time consuming, however
it is the most powerful in generating insights that
managers need to share with their broader business”

6. Operating Model
• Analyse alternative operating models (e.g. in-house,
outsourced, etc.)
• Assess alternative operating models from a qualitative,
quantitative and risk perspective
• Outline key operating model enablers
➢ the people, process and systems required to effectively
operating the future transport network and deliver benefits
Transformation Plan
• Develop transformation timeline/ next steps
➢ including future workstreams/ projects
Phase 3 - Operating Model
“I endeavour to assist my clients in optimising their transport
network through a transparent and bottom-up approach.”

7. Is it right for me?
A route-to-market study might suit your business if:
• You have dedicated captive fleet in your operation
(regardless if in-house or outsourced)
• You’re preparing to undertake a procurement process
• You’d like to understand the change in cost-to-serve
through various delivery scenarios (e.g. changed service
levels, consolidated business unit deliveries, etc.)

8. If you’re thinking about undertaking a route-to-market review,
it is imperative that you:
• Clearly outline your requirements and calibrate the
baseline correctly
• Have a clear understanding of the benefits and risks of
the what-if alternatives (e.g. is cost-to-serve more sensitive to
expanding time windows or smoothing deliveries of your freight
profile?)
• Identify the realistic price and performance opportunity
that can be unlocked through a competitive market
process or business improvement program
Things to consider
“Feel free to reach out, I’d be more than happy to discuss how
you can unlock the hidden gem in your transport operation.”

9. Read more here…

10. …or watch more here

11. Property
Logistics
Project Management
Thank You.
Reach Tim Charlton via Click here for
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