Strategic network design Benelux and tactical depot optimization.

Several projects are done for DPD Netherlands as well as DPD Belux. Different business questions have been worked out, related to capacity planning, depot optimization, tool development and rate calculations. This long-term project concerned tactical depot optimization and strategic network design.

 

For DPD Benelux the current network was evaluated and a new network was designed in which the capacity planning for the next 15 years was taken into account, depending on various growth scenarios. The network capacity model is based on information of individual parcels and shipments. On a strategic level operating expenditures (Opex) and capital expenditures (Capex) are considered and the optimal investments in depots over the years are calculated. This complex network structure is modeled in the software LogicNet XE and later in Llamasoft’s Supply Chain Guru. The network design is evaluated regularly by Argusi, based on recent data and latest growth expectations.

 

DPD Netherlands wanted to improve its routing table optimization procedure to professionalize towards a standardized forecast-based optimization procedure. The continuous growth of DPD causes changes in for example: the proportion of B2B to B2C deliveries, the geographic division of demand and tour specific characteristics. The network has been analyzed on a tactical level, using powerful optimization techniques and models. This has resulted in a transparent standardized approach for route optimization, which can be repeated whenever necessary. Also, a software tool has been developed, together with Charta Software, that helped in standardizing optimization procedures. Within DPD, analysts are trained in using this approach and the models, which made them capable of doing the optimizations independently of Argusi.

Used tools and techniques:

Several projects of the last years. An overview:

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