Optimize your Network. In the Courier, Express and Parcel market ADDING CREDIBILITY

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1 Optimize your Network I the Courier, Express ad Parcel market ADDING CREDIBILITY

2 Meetig today s challeges ad tomorrow s demads Aswers to your key etwork challeges ORTEC kows the highly competitive Courier, Express & Parcel (CEP) busiess iside out. We re experieced i helpig etwork maagers address today s daily challeges ad equip your etwork to meet tomorrow s upredictable demads. To achieve the optimal cost-service balace for your busiess, we remove the guesswork to reveal the aswers to the crucial etwork maagemet questios: How ca my liehauls meet service levels i How ca I better utilize my vehicles? a cost-efficiet way? Which tours should I offer my subcotractors so I How ca I keep costs uder cotrol despite get the best possible price? volume fluctuatios? How do I grab the opportuities offered by expirig Do I eed separate etworks for special/faster subcotractor cotracts? services? How do I restructure the etwork whe we close a Ca I meet the service levels better by bypassig depot/hub? hubs? Ca our curret ifrastructure support our optimal Am I usig the best routig for each flow-ad- etwork? service combiatio? Smarter solutios for smarter decisios At ORTEC we have the expertise ad tools you eed to tackle these challeges i a structured way. We provide fact-based isights ito your etwork s curret performace ad cocrete improvemets to your etwork processes. Our wide rage of support ad solutios ca meet your etwork challeges, whatever the scale ad complexity of your busiess, from a global multi-modal cocer to a small local service. Beefits iclude: Isight ito your etworks curret performace Advice o which chages will deliver the biggest beefits Help creatig your optimal etwork, balacig cost ad service Quatitatively substatiated advice o the best sceario to implemet

3 Network Guard First idetify your weak spots How is your etwork curretly performig? Do you kow the extet of your etwork s volume imbalace? What is your cost-per-kg for differet product-service combiatios ad differet volumes per period? Network Guard is a maagemet iformatio tool that gives a clear, logical overview of how your etwork is operatig, providig isights ito your curret stregths ad weakesses. So you kow the areas where you ca achieve improvemets that will give you that competitive edge. Chart 1: Balace of i- ad outgoig flows per locatio Istat isight, log-term added value Chart 1 shows igoig ad outgoig flows from differet locatios i the etwork. Tellig the etwork maager that operatios i his depots have differet peak times ad eed differet mapower set-ups. It also highlights that with the curret etwork it will remai a challege for him to costruct efficiet roudtrips. Outgoig Icomig ,0 13,0 Chart 2: Evaluatio of cost-per-kg over the year 60 8,0 Chart 2 shows how i the summer, with a decrease i 40 3, ,0 Ja Feb Mar Apr May Ju Jul Aug Sep Oct Nov Dec volume ad icrease i cost-per-kg, this etwork maager did t dowsize sufficietly to reduce his costs eough to compesate for volume decrease. Volume Cost per KG Bechmark Cost Kow how your etwork is performig Network Guard gives you the KPIs you eed to moitor your etwork s performace: Service requiremets per product type Total kilometers Volume flows per product type Total cost, cost per to, cost per to per km Number of tours Differeces i performace agaist KPIs over differet time periods Number of movemets So you kow exactly where the improvemet opportuities are: your first step towards a better etwork.

4 Network Simulator the take a big step forward with your improved etwork Network Simulator assigs volume flows to movemets. Lettig you see your curret etwork i graular detail ad calculate your optimal routig of volumes. Ad revealig the opportuities you have to reduce costs, improve service, better utilize liehauls, ad geerally make your etwork resiliet eough to accommodate sigificat volume fluctuatios. Here are just some of the potetial improvemets Network Simulator ca trigger: Combie two uder-utilized movemets Itroduce routes with multiple depot-visits before coectig to a hub Chage vehicle types/modalities Chage route via a hub to a direct depot-to-depot route or vise versa The figures show two differet etwork setups: The left figure is a Hub-&-Spoke etwork: very efficiet for example with LTL (less-tha-truckload) operatios, where depot-to-depot volume is too low for full truckloads. But also more time-cosumig, due to additioal hadlig time at hubs ad potetial detours coectig to hubs. The secod is a Express etwork: because it uses several movemets where hubs are bypassed, the etwork costs are higher but service capabilities icrease sigificatly. Average utilizatio of liehauls Average utilizatio of liehauls Average cost per kilo Average cost per kilo Average umber of service days Average umber of service days Figure 1: Hub-&-Spoke etwork Figure 2: Express etwork What-if? Network Simulator lets you carry out what-if sceario aalyses. So you ca quatify the effects of particular evets ad adjust your etwork to deliver your optimal solutio. For example: What would be the impact of volume chages withi your etwork? What should I do whe a subcotractor s cotract expires? How should I reroute volume if a particular depot has to close? Where ca I reduce my air volume ad switch more volume to road?

5 Network Optimizer before completely optimizig your ifrastructure The Network Optimizer will use existig movemets to create your best routig of volumes, or geerate ew movemets if that will deliver a eve better etwork. Esurig you get the optimal etwork withi the ifrastructure available. Figure 3: a combiatio of a Hub-&-Spoke ad a Express etwork Average utilizatio of liehauls I figure 3 the optimal etwork has aspects of Average cost per kilo both the LTL ad Express etworks: a costefficiet hub-&-spoke basis, with depot-to-depot movemets to solve service bottleecks. As a result, this etwork costs less tha the Express etwork, but still maages to miimize ay Average umber of service days adverse service impact. Network Simulator versus Network Optimizer Network What-if scearios possible? Improvemets Level Implemetatio timescale Simulator Curret Operatioal & Tactical Immediate Optimizer Curret & New Operatioal & Strategic Medium- to logterm About ORTEC Cosultig Group ORTEC Cosultig Group is a divisio of ORTEC, the world s leadig provider of advaced plaig ad optimizatio solutios ad services. ORTEC has over 1,650 customers worldwide, over 700 employees ad offices i Europe, North America, South America ad the Pacific Regio.

6 Improvig the flow so your busiess ca grow Optimizig your etwork i the Courier, Express & Parcel (CEP) market A efficiet etwork is vital if you wat to give your customers the level of service they expect agaist the lowest possible operatioal costs. Ehacemets to your etwork s cost- ad service efficiecy. Makig it robust eough to hadle chage, ad thereby future-proof: To help you achieve this delicate balace, ORTEC offers a uique portfolio of products ad services that address the specific challeges facig your compay Isights ito how your etwork is curretly performig: Calculatig the routig of volumes. Assigig volumes to movemets i order to idetify depot-to-depot movemets, combie uder-utilized movemets, chage vehicle types/modalities, ad routes via multiple depots. Aalyze differet what-if scearios, such as volume Utilizatio of liehauls chages or the closure of a depot. Imbalaces of volumes Develop the optimal etwork withi your available The bottleecks for achievig your agreed service levels ifrastructure. Number of days eeded for each origi-destiatio flow Curious what ORTEC ca do for your etwork? Sed us your cotact ifo at ad we will cotact you. Rated the best by our peers I 2012 ORTEC wo the prestigious Fraz Edelma Award together with TNT Express ad Tilburg Uiversity for helpig TNT Express optimize its supply chai. The price is awarded by the Istitute for Operatios Research ad Maagemet Scieces (INFORMS ), a iteratioal society with 10,000 members, icludig Nobel Prize laureates, focused o applyig scietific methods to support decisio-makig, maagemet ad The wiig Operatios Research tool aalyzes ad operatioal processes. improves TNT Express trasportatio etworks. Deliverig major cost savigs, service ad maagemet improvemets, ad CO 2 emissio reductios. The Netherlads North America

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