Cargo Flow Optimization

See this post "Inside Glovo’s deliveries optimization" from Glovo. Efficiency is the key to success in the instant-delivery business. The Matching Team from Glovo has developed innovative methods to optimize order assignments for couriers. Here’s how they do it: → Assignment Problem: Glovo tackles the challenge of assigning the best courier for each order by using algorithms like the Hungarian Algorithm and Minimum Cost Flow. They aim to reduce courier waiting times and improve delivery speed without violating business constraints. → Bundling Strategy: Combining multiple orders into a single delivery, or bundling, allows them to increase efficiency, but it’s not simple! They consider real-time factors like preparation time, travel distance, and traffic conditions. → Multibundling & Scaling: They extended bundling to multiple orders across different locations, but handling such complexity required solving the Vehicle Routing Problem (VRP) efficiently, especially when considering millions of orders and couriers. → Architecture: To manage ~20 million assignments monthly (that's back in 2023, they rely on an advanced system architecture using relational databases, Redis for geo-indexing, and scalable instances. All decisions are processed in under 10 seconds per city. → Continuous Optimization: Real-time data and predictions help them adapt to changing circumstances, ensuring we always make the most efficient choices. With technology and algorithms, they're pushing the boundaries of what’s possible in delivery optimization. 🚴♂️📦

How SMED Can Revolutionize Logistics Efficiency In manufacturing, Single-Minute Exchange of Die (SMED) is a well-known Lean methodology used to reduce changeover times and improve flexibility. But what if we applied the same principles to logistics and supply chain operations? The results could be transformative. What is SMED? SMED is a systematic approach to minimizing downtime during process changes. Originally developed for manufacturing, it focuses on: Separating internal and external setup tasks Converting internal tasks to external (where possible) Streamlining all remaining activities The goal? Reduce non-value-added time and increase operational agility. Applying SMED in Logistics Logistics involves frequent changes—switching between shipments, adjusting routes, loading/unloading, and handling different cargo types. Here’s how SMED can optimize these processes: 1. Faster Truck/Trailer Changeovers Internal (time-consuming) tasks: Adjusting cargo straps, repositioning loads, securing pallets. External (pre-prepared) tasks: Pre-staging loading equipment, pre-labeling shipments, using standardized containers. ✅ Result: Reduced dock time, faster turnaround for carriers.** 2. Warehouse Picking & Packing Efficiency Batch similar orders to minimize tool/equipment changes. Pre-position packing materials near packing stations. Use modular carts/containers to speed up transitions between different product types. ✅ Result: Higher throughput with fewer delays. 3. Cross-Docking Optimization Pre-sort inbound shipments before arrival. Use automated scanning to eliminate manual checks. Implement parallel unloading/loading to cut idle time. ✅ Result: Faster transfers, reduced holding costs. 4. Last-Mile Delivery Adjustments Pre-load delivery vehicles in reverse delivery sequence. Standardize packaging sizes for quicker handling. Dynamic routing software to minimize rework. ✅ Result: More deliveries per shift, lower fuel costs. Real-World Impact Companies like Amazon, DHL, and FedEx already use SMED-inspired techniques to streamline operations. By treating logistics changeovers like manufacturing setups, businesses can: ✔ Cut idle time by 30-50% ✔ Improve asset utilization ✔ Enhance responsiveness to demand fluctuations Final Thought SMED isn’t just for factories—it’s a powerful tool for logistics efficiency. By analyzing and optimizing changeover processes, supply chains can become faster, leaner, and more competitive. Are you using SMED or similar Lean methods in logistics? Share your experiences below! 👇 #Logistics #SupplyChain #LeanLogistics #SMED #OperationalExcellence #ContinuousImprovement #WarehouseEfficiency #Transportation #SupplyChainOptimization #LeanManufacturing

Not all shipments are created equal. Some deliveries are urgent, with customers counting the minutes until they arrive (... me with Amazon deliveries). Others have more flexibility. So, how do you decide what gets priority? Well, the final piece of the route planning and optimization puzzle this week are customer requirements and prioritization. It's about balancing what's urgent with what's efficient, ensuring that every shipment gets where it needs to be, exactly when it needs to be there. But here's the catch: prioritization doesn't work in isolation. It only works when paired with data-driven decision-making, dynamic routing, and optimized loads & vehicle utilization. Here's how it all connects: 📦 Customer requirements are the starting point. By understanding delivery windows and shipment urgency, planners can categorize shipments into priorities. Critical shipments can then be routed through the most time efficient paths while less-urgent shipments can balance time and cost. 📦 Data-driven decision making backs these priorities by insights. Real-time data helps planners adapt to disruptions that can impact high priority shipments, while historical data informs strategies to prevent delays in the first place. 📦 Dynamic routing allows flexibility when things don't go as planned. Need to reroute a time-sensitive shipment? No problem! Dynamic plans help keep high-priority deliveries on track without throwing hte rest of the schedule into chaos. 📦 Load optimization & vehicle utilization make sure that every truck is working efficiently, even when prioritization shifts the focus to critical shipments. Grouping similar loads and assigning the right vehicles create the flexibility to adjust without wasting resources. By aligning customer needs with operational strategies, companies can do more than just meet delivery windows. At its core, prioritization is about creating value by aligning customer needs with broader supply chain goals. Think about how meeting delivery windows impacts production, warehousing, inventory, other shipments... Every shipment is another step toward an interconnected, responsive, and resilient supply chain. #supplychain #logistics #transportation #routeplanning