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Achieving optimal efficiency while minimizing costs is a constant pursuit in logistics and supply chain management. And if you run a business that requires frequent last-mile deliveries, you are undoubtedly aware of the financial stress it causes your company. The last-mile delivery component accounts for 53% of overall shipping expenses, according to InsiderIntelligence. With the number of global online shoppers standing at 2.64 billion in 2023, making your logistics processes cost-effective is something you cannot ignore now. This is where fill rate optimization and vehicle mix modeling become essential.
Fill rate optimization refers to the process of maximizing the capacity utilization of vehicles during deliveries or shipments. It ensures that each transportation trip carries the highest possible quantity of goods, minimizing empty vehicle spaces. But fill rate optimization is not just about filling the delivery vehicles. It also deals with filling them with the proper SKUs. Businesses should carefully determine the SKUs depending on the sales patterns. This will allow the distributor to push sales or, at the very least, to ensure that filler SKUs are sold before the arrival of the subsequent shipment.
This involves determining the appropriate combination of vehicles with varying capacities and specifications to meet transportation demands efficiently. It aims to find the optimal mix of vehicle types that can handle diverse orders while minimizing operational costs.
Mojro offers businesses many innovative solutions to tackle the challenge of fill rate optimization. PlanWyse, Mojro's AI-powered logistics planning platform, enables businesses to optimize fill rates. This solution can also make intelligent suggestions for extra SKUs to fill up the vacant spots in a delivery truck. Planwyse can analyze all the available historical sales data and decide the SHKUs that should be shipped to a distributor first. This empowers businesses to manage inventories better and utilize their vehicles to their fullest potential. Planwyse also considers numerous constraints other than previous data to make relevant and intelligent choices depending on the delivery situation.
Mojro's "Secondary Distribution" solution has "Load Builder" capabilities that can seamlessly match vehicles' type and capacity to SKUs. The fill rate optimization and recommendation feature ensure that vehicles are used more effectively for stock movements.
Mojro offers businesses dynamic route planning features that can improve the speed and efficiency of operations while maintaining fill rate optimization.
Fill rate optimization and vehicle mix modeling are critical strategies for efficient logistics operations. By using AI-powered solutions like Mojro, businesses can focus on maximizing capacity utilization, reducing empty spaces, and strategically selecting vehicle combinations. This can help them save costs, enhance customer satisfaction, and contribute to sustainable and effective supply chain management.
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