A Phased Approach To Dynamic Routing

Through this process, Kuna was able to eliminate 15 percent of its routes and generate a $4,000 savings per month while still meeting customer expectations.

MULTIPLE SCENARIOS

Once Kuna became comfortable with the dynamic routing process, it began to run multiple scenarios before releasing the routes to dispatch. Direct Route quickly creates optimal routes using various dispatch parameters and allows users to review total hours, miles, etc., for each scenario. This flexibility allows companies to review results under multiple sets of parameters and select the routes they would like to use.

“Each day we run multiple routing scenarios with Direct Route and choose the solution we want to send to the warehouse for that particular day,” says Schuler. With hundreds of customer delivery points, truck capacities and other business rules incorporated into the routing, this analysis would be extremely difficult using manual methods.

Multiple scenarios can be calculated and saved using this capability and clients are not locked into a particular routing scenario using a static set of parameters. Kuna uploads the finalized fleet routing from Direct Route to the back-office system for warehouse operations and daily dispatch. Truck loads and sequences are accessed for order picking and loading functions. Delivery volumes and unloading times are used to provide accurate schedules and order information.

Eight years after installation, Kuna continues to expand the use of Appian’s system. The company also uses Direct Route’s modeling and route-costing tools to bid new business, model future scenarios, and review fleet changes before decisions are made. Using order volume projections, incorporating drop-and-hook locations and evaluating different truck types are a few examples of this.

Kuna uses the system to calculate total delivery costs for the various scenarios and make financial decisions regarding the fleet operations. “Before we make an operational change, we use Direct Route to review the impact on fleet requirements and transportation costs,” says Schuler.