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Distribution

In this section of our blog you will find all the articles related to logistics applied to medium and long distance transport, and last mile distribution.

How is last mile distribution applied in rural areas?

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Caja de transporte de hombre de tiro medio - retos de la última milla en zonas rurales foto

Last mile distribution is known to consist of the entire delivery process to the end consumer, i.e. the routes from a distribution center to the customer's home or business. In many cases, special emphasis is placed on distribution within large cities and other densely populated towns because of the challenges of traffic and delivery by assigned zones.

However, what about last-mile distribution in rural areas? Despite being places with low population density and less traffic, distribution of goods has its own challenges due to the long distances and lack of facilities that urban areas often have. In this case, how does last-mile distribution in rural towns differ from urban areas?

If you want to learn about the challenges of the last mile in rural areas and how it is distributed in such environments, read on.

Partnership with local companies

Nowadays, it is already common to see logistics operators and other companies having partnerships with small businesses and other local companies to use their physical spaces as urban hubs or delivery points. In rural towns, such partnerships are more frequent and essential to optimize the rural last mile.

This is because local businesses located in agricultural areas have a better understanding of distribution areas, such as logistics social services that facilitate the delivery of products to families. Therefore, they have the potential to offer better logistical support, such as temporary storage areas or delivery points for delivery routes that are very extensive or difficult to access.

Use of specialized vehicles

Due to the uneven topography and road conditions, transport vehicles must be adapted to the usual rural road conditions. Sometimes it is even necessary to have an off-road or four-wheel drive vehicle.

However, there are a number of trucking companies and other organizations with a fleet of vehicles adapted for rough terrain. Either having your own fleet of adapted vehicles or relying on the services of another company that offers them are suitable options for adapting last-mile distribution to the rural environment.

Ilustración de concepto de camión vintage - retos de la última milla en zonas rurales vector

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What are the differences between Dropshipping and Crossdocking?

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Concepto de ilustración de negocio de dropshipping - Diferencias entre Dropshipping y Crossdocking vector

Nowadays e-commerce is one of the fastest growing sectors in Spain in recent years and this is due to changes in consumer habits at a time when they were not allowed to visit physical stores. That is why many companies and businesses have decided to take the leap and start selling online.

When deciding to sell online, it is important to choose the distribution model that best suits the characteristics and needs of your business or company. Dropshipping and Crossdocking are commonly discussed. But how do we know which is the right option for our online store?

Here are the definitions of both types of logistic distribution to understand the differences between Dropshipping and Crossdocking:

Dropshipping

Dropshipping consists of a type of distribution in which all the distribution and transportation of the products is carried out by the supplier or manufacturer instead of the business that sells on its own behalf. It should be noted that it is a very popular distribution model among small e-commerce because of its accessibility, since it dispenses with warehouses and all the management and expenses involved.

Crossdocking

Crossdocking is a type of distribution where the supplier or manufacturer sends the orders to the same seller or to a distribution center to be delivered to customers. It is certainly a distribution model recommended for stores with small warehouses where they can prepare orders.

Once the types of distribution are known, you should take a look at the following points that mark the differences between Dropshipping and Crossdocking:

Logistics costs

Undoubtedly, the most economical model for the distribution of orders to end customers is Dropshipping because it is not necessary to have available space to store all the merchandise. And this is because orders are shipped directly from the supplier's warehouses to the end user, without the need to go through so many intermediaries, which means that they also take care of the logistics costs except for reverse logistics.

However, Crossdocking is also a relatively inexpensive system because of the short time shipments spend in your inventory. That is, once the order is received from the supplier, you go to a carrier to pick it up and ship it to the end customer. Although it takes an additional day for the package to arrive, the inventory holding costs are less than the cost of a warehouse to store the merchandise.

Agreement with suppliers

It is worth mentioning that each supplier has its own preferences in terms of the type of distribution it offers to merchants and businesses. In general, Crossdocking is the most accepted system by suppliers and the most compatible with a relatively high volume of orders and more variety in the e-commerce catalog.

However, this does not mean that there are several suppliers that ship using the Dropshipping model, which is especially focused on small online stores, but they are limited. In this regard, choosing one type of distribution or another depends entirely on the products themselves and the volume of orders received by the online store. 

Mujer joven asiática vende ropa empresaria que trabaja en casa. sta - Diferencias entre Dropshipping y Crossdocking foto

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What are the challenges for the Supply Chain at Christmas?

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Logistics, Supply Chain and Delivery Concept - Retos de la Supply Chain en Navidades

Se conoce que las épocas del año en el que la cadena de suministro se enfrenta a muchos desafíos son, sin duda, los picos de demanda acompañados con festividades como el Black Friday y Navidad. Estos últimos años, a causa de los cambios en la economía provocados por la pandemia, la cadena de suministro ha … Read more

Why reverse logistics is key to Black Friday

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Mujer angustiada hablando por teléfono mientras prepara paquetes - Logística inversa en el Black Friday

It's getting earlier and earlier when you start hearing offers weeks and even months in advance of Black Friday, a key date for Christmas pre-shopping. And that's because more and more large retail companies are deciding to extend these dates of consumption, launching offers before Black Friday and after Cyber Monday.

This translates into a supply chain that is less pressured by the bottleneck generated by a peak demand originally focused on a single day. However, there is a key element in peak demand strategies: reverse logistics due to the nature of the purchases and their expected high volume of sales, of which another large number of returns are expected after the holidays.

If you want to know the important points of reverse logistics on Black Friday and other demand peaks, take a look!

Packaging damage

According to this DS Smithstudy, it was estimated in 2021 that e-commerce shoppers would receive more than 14 million damaged and spoiled products and 64% of online shoppers had already claimed to receive their purchase in poor condition before. This results in a high volume of merchandise returns, especially if the price is more than 25 euros, and high consumer dissatisfaction.

This problem can be avoided without much mystery by applying the right packaging for each product or order. Either choosing the right package size without being unnecessarily bulky, applying suitable protectors for them and closing the box properly avoiding spaces that can be opened. Besides it is necessary to avoid overpacking because, sometimes, it turns out to be more counterproductive for the protection of the article and generate more waste of materials.

It should be noted that staff must follow instructions on how to handle packages, as quick but careless handling could cause knocks and damage the item. In addition, not all products are eligible for return because, if the shipping costs turn out to be higher than the price, it is decided not to take the package back to the warehouse and, instead, alternatives and compensation are offered to the affected customer.

Servicio de entrega urgente ilustración vectorial plana - Logística inversa en el Black Friday

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4 advantages of Click and Collect in logistics operations

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vehículo de transporte furgoneta de reparto dibujos animados. Ventajas del Click and Collect

The importance of implementing sustainability in supply chain processes is often discussed from the point of view of the logistics and transportation industry. In this case, in terms of sustainability, users demand both commitment and convenience in the delivery of their orders. However, these desires are not compatible with a genuine commitment to the environment, at least not with the technology currently employed.

One of the rising trends in the retail sector is Click & Collect, an option that has gained prominence in recent years and offers several advantages for both the store and the consumer, including reducing carbon emissions.

If you want to know the advantages of Click and Collect in logistics operations, take a look!

Accorciare l'ultimo miglio

The last mile often has a number of challenges that have arisen in recent times, which are difficult to circumvent and employ good capillarity in delivery. For example, restrictions on the entry of large vehicles into urban centers and difficult access to certain addresses with very narrow streets along with the common challenge of facing the usual traffic congestion of large cities.

With Click & Collect , the final destination is shortened, being its ultimate transport objective that it arrives at the establishment meeting the established objectives. However, it still depends on the location of the premises, which will be easier if it is located in a shopping center on the outskirts with a good platform for unloading goods or just as difficult if it is in a pedestrian area in the heart of the city. Nevertheless, it is still a very economical option for both the logistics operator and the company.

Avoid missed deliveries

One of the biggest inconveniences faced by deliveries to the end customer is that they are not completed successfully. Among its main causes are the absence of the end customer at the home or office, generating more inconvenience for redelivery, which results in more reverse logistics costs. In addition, not all logistics operators can guarantee that the order will arrive in a very specific time slot requested by the customer.

El Click & Collect gives the guarantee of successful delivery of the package and the freedom to pick it up at the store or post office when the customer is available. This is as long as it does not exceed the order booking period (usually about 15 days) and within the business hours of that establishment. Although time restrictions can be eliminated with the option to store them in automatic lockers accessible 24 hours a day.

Empresaria preparando el envío de paquetes. Ventajas del Click & Collect

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Differences between Push and Pull distribution

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Ilustración isométrica de un almacén. diferencias entre distribución push y pull vector

It is known that inventory management is based on the structure and objectives of the company's distribution network according to the sector in which it operates. This is done by deciding on the distribution channels through which to deliver products to customers and seeing which are the most optimal in terms of customer service and cost and resource savings.

To this end, there are two ways to fill inventory in a distribution channel: Push and Pull. Knowing their definitions and their advantages and disadvantages is crucial to choose the right strategy according to the industry you work in and your needs.

If you want to know the differences between Push and Pull distribution, their benefits and drawbacks and for which cases one strategy or the other is intended, read on.

Push Distribution

In a Push distribution system, it is the manufacturer or supplier that decides how many units of product are manufactured and distributed. First, they aggregate all the lower level storage points to historical demand and then perform demand forecasting to determine quantities. Next, replenishment inventory is shipped through the warehouses from the originating supply facilities.

This method makes the first nodes of the supply chain responsible for replenishing the stock, manufacturing the efficient amount of goods to be able to ship them to their distributors and avoid excess inventory.

Push Advantages

One of the advantages of this method is that high inventory levels can be maintained by predicting demand to generate a safe stock level. This is a producer-centric strategy. Therefore, for products that have peaks in demand at specific times of the year or are in high demand throughout the year, such as the food sector, such an approach is effective.

Push Disadvantages

However, one of the most notable drawbacks of Push distribution is that, as this decision is made by the lowest nodes in the supply chain, it is far removed from the actual demand being demanded by current customers. For this reason, it suffers from a notable lack of transparency and visibility into the needs of those customers.

That is why it is difficult to adjust to peaks in demand that are difficult to predict and provide good service, usually causing stock-outs. In addition, it requires good management to maintain a good product flow.

foto-media-hombre-usando-auriculares. diferencias entre distribución Push y Pull foto

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Which route will get you to your customer first?

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Tiro medio hombre hablando por teléfono. cómo llegar antes a tu cliente foto

One of the most important and, at the same time, tedious tasks to perform in a company with logistics and transportation is the calculation and planning of routes for a specific day or week. With the increasing number of challenges in the industry such as low-emission zones, high fuel prices and higher demands for satisfactory customer service, it is necessary to re-manage routes to adapt and become more efficient.

Para encontrar la ruta definitiva que hará llegar antes a tus clientes se deben de tener en cuenta varias características de las paradas, vehículos y restricciones, entre otras. Además de mantener una comunicación sólida ante cualquier incidente que pueda ocurrir, ya sea un factor interno o externo.

If you want to know the key factors for optimizing delivery routes and how to reach your customer faster, take a look!

Distances between delivery points

Entre los principales factores que se piensan primero cuando se habla de optimizar rutas de reparto son las distancias entre el centro logístico y los puntos de entrega. Además de que es más sencillo calcular una ruta concreta en cuanto echamos un vistazo a la proximidad entre varios puntos de entrega.

Generally, if other factors and constraints are not taken into account, one of the best routes is the one that starts with the stop closest to the warehouse. And then follows the second stop close to the first, and so on until you have finished with all orders and return to the logistics center.

However, a simple glance at delivery points can hide narrow and difficult to navigate last-mile streets that can significantly delay deliveries. Consequently, this factor is one of the first to be considered when creating a "sketch" route and then assigning drivers, vehicles and other constraints.

Delivery and staffing schedules

It is known that, with a number of batches or individual orders for a specific day, a delivery time zone is agreed with the users when calculating routes. However, these customers are increasingly requesting more precise time zones, according to their needs. Therefore, such orders must be assigned to the carrier with shifts and agreements that are compatible with the assigned time slot.

It should be noted that special attention must be paid to labor restrictions for carriers. For example, drivers are not allowed to work more than 6 hours at a time without a break in a day, so they must rest for a minimum of 30 minutes. If it is a very long route, the appropriate time slot would be assigned in accordance with the regulations and, if necessary, another carrier would be assigned to cover the shift. Not to be forgotten are the hours when loading and unloading is allowed in the cities or at the logistics center receiving the delivery.

Punto de entrega concepto abstracto ilustración vectorial. cómo llegar antes a tu cliente vector

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How to plan the management of light electric vehicles?

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Hombre de entrega montando bicicleta con paquete - gestión de vehículos ligeros eléctricos foto

When people often talk about a fleet of vehicles, their most familiar image is usually that of trucks, trailers and even vans, given their relevance in the logistics industry. However, we should not forget the latest protagonists in terms of alternative vehicles to the usual ones: motorcycles and bicycles.

More and more companies have already implemented electric light vehicle management, promoting sustainability and last mile capillarity. However, how can you have control over a fleet of motorcycles and bicycles? Does it differ much from a conventional fleet of trucks and vans?

If you are curious about the following points to keep in mind when controlling a fleet of light vehicles, take a look!

Define a fleet management strategy

Like any logistics fleet, such a fleet requires a good strategy in its respective document in order to be in line with the needs and other business strategies. In particular, if one takes into account objectives such as the sustainability of the activities for which an electric light vehicle management can grant.

It should be noted that a fleet strategy must be connected to the fleet policy, which establishes everything that can be covered by the strategy, both its objectives and the rules to be followed by both the personnel involved and the drivers. Consequently, it is essential that all the organization involved in the fleet participates in the realization of the strategy so that the strategy is defined in a realistic and well realized way.

Automate routine tasks

Fleet management (and, for that matter, electric light vehicle management) is known to have very tedious tasks and optimizing time and cost savings is paramount to improving the efficiency of the process. These include paperwork, MOT, fines, regulatory compliance and supplier cost invoices, and so on.

Therefore, the automation of manual processes is an almost essential step because of the numerous benefits it provides. Among its advantages are reducing the number of unnecessary tasks, going paperless, creating the possibility of analyzing data collected from operations and improving the use of human resources.

Mensajero profesional que entrega el pedido en la ilustración plana de scooter - gestión de vehículos ligeros eléctricos vector

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5 ways to optimize your logistics nodes

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ordenación-de-cajas-en-el-centro-logístico-nodos-logísticos

Logistics nodes are known to be a fundamental part of all the processes involved in logistics. They range from factories to last mile distribution centers in charge of receiving, storing and managing the entire distribution of goods.

However, these operations are often not optimized. Therefore, the quality of service to customers deteriorates considerably due to delays, reduced shelf life of perishable products, having a product out of stock for a prolonged period of time, among others.

For ways to get the most out of your logistics infrastructure, take a look at the following points:

Design distribution strategies

The company may already have its own distribution strategies for its own network of logistics nodes. However, given the constant changes that can affect all logistics, it may be necessary to update them according to current demands.

Para ello, recopilar la mayor cantidad de datos posibles es esencial para conocer los siguientes pasos que se tienen que dar. De esta manera, se pueden diseñar estrategias eficientes para cubrir las necesidades de la mercancía y la distribución.

Define management indicators

As it is often mentioned, the performance of an activity cannot be evaluated if we do not have key indicators assigned. In the management of a logistics infrastructure, this is no exception and KPIs must also be assigned in all operations to have their monitoring at hand.

It not only serves to measure the performance of merchandise management. It is also very useful for keeping logistics node costs and customer satisfaction in check, especially in the event of complaints and problems with products.

Perform inspection of the infrastructure

The inspection and maintenance of the infrastructure of the logistics nodes is essential both for the safety of the personnel and for the guarantee of the goods. Otherwise it can cause serious accidents in both situations.

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7 benefits of a TMS that will help your business

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Ilustración de vector de concepto abstracto de gestión de cadena de suministro - beneficios del tms

You've probably already heard about why it's so important for your company to implement transportation management software because of all the benefits a TMS provides. Thanks to the growth that the TMS industry has experienced, there are now more affordable options for small and medium sized companies along with that of large enterprises.

However, it may seem complicated to install a TMS and that it will take time to understand its interface and manage it. But the opposite is true: it saves time and money in your logistics operations.

If you want to know in detail the benefits of a TMS, take a look at the following tips:

Unify all data in one place

Imagine a TMS as a control tower that also unifies all types of data on a single platform, from the manufacturer to the last mile. In this way, you can visualize it from a single platform and always keep the information up to date.

Thanks to this unification, managers and staff can make changes easily and with all the updated information. From route adjustments to implementing new processes, this is one of the key benefits of a TMS for your company.

Increases warehouse efficiency

Being up to date on the life cycle of orders throughout the supply chain gives a clear view of future needs and anticipates when inventory needs to be replenished.

Having full control over the loads entering and leaving the warehouse helps to better calculate the amount of stock needed to meet demand without delays and also to avoid stock-outs.

Let's not forget either that all the time saved on more automated tasks can be invested in this very important aspect of the entire logistics process.

Save transportation costs

It is known that one of the most costly activities in the entire logistics process is transportation, due to the fact of handling fuel, distances traveled, personnel, among others. It is estimated that it accounts for more than 50% of the total logistic cost of all companies.

However, one of the benefits of a TMS is that it assists in the planning of all loads so that each trip is worthwhile and no more money is wasted than could be saved. In addition, if we optimize our routes for those loads, we will be able to reduce further costs.

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5 solutions for carriers to make their job easier

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Ilustración de concepto abstracto de centro logístico vector gratuito - soluciones para transportistas

One of the most critical moments in logistics is the transport of goods in which we try to operate with the least possible inconveniences to achieve the objectives successfully. Also carriers are a key part of this process with many setbacks, therefore, it is important to find solutions for carriers.

The most common problems drivers encounter are often beyond their control and their main causes are overwork and lack of proper management. If you want to know the keys to help carriers in their delivery and driving management, take note!

Optimize routes

Carriers often work against the clock to get deliveries to loading and unloading centers on time, especially those over long distances. It usually takes a lot of work to organize all the destination points to save time. In addition, both freight managers and carriers have strict work schedules and limits on their vehicles, making organization even more difficult.

Therefore, a route optimizer plays an important role in finding the most efficient route possible taking into account the various constraints and characteristics of the load, the vehicle and the driver himself. That is why it is one of the most useful solutions for carriers.

Communicate in real time

On the road and in cities, many types of mishaps can occur despite a well-defined route and optimized loading. All this work would be in vain if good real-time communication is not maintained.

Thanks to the digitization of the industry, more carrier solutions have been developed that keep staff in touch and can instantly send messages about the status of the delivery. From supply chain delays to traffic restrictions and outages, everyone involved in the process must be informed of any unforeseen events and create strategies to avoid them as much as possible.

Upgrade vehicles

Given the increasing restrictions in cities and on highways regarding the circulation of a certain number and type of vehicles, it is time to consider such solutions for carriers as alternatives that meet the requirements of the environmental label.

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4 Smart City initiatives that drive sustainable mobility

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Ilustración vectorial del concepto de mensajero autónomo. movilidad sostenible Smart City

Currently, one of the issues we are most aware of and concerned about is global warming and measures to reduce its impact. Whether it is minimizing carbon emissions, eliminating plastic and opting for renewable energies, and among them is to achieve sustainable mobility.

One of the most important initiatives is to promote smart cities in cities. It consists of managing all the usual things that are taken into account in a city but adding the plus of sustainability.

Here are some examples of how to promote sustainable mobility applied to logistics:

Electric vehicles

Given the increasing traffic restrictions on distribution vehicles in terms of number allowed, length, capacity, vehicle model, level of congestion and other aspects, it is becoming increasingly common for companies to renew their vehicle fleet to pursue an ideal level of sustainable mobility.

Among the most notable changes are electric or hybrid trucks that significantly reduce CO₂ emissions and minimize noise pollution.

Some last mile companies have also opted for more unusual vehicles such as scooters and electric bicycles because of their ability to access difficult urban areas that even a van could not enter, thus considerably reducing the impact of the carbon footprint.

DUM monitoring and optimization

Given the increasing difficulties faced by last-mile distribution (LMP) due to the growth of large cities, the increase in traffic restrictions and the great momentum of e-commerce, solutions to these problems are becoming increasingly complex.

Among the initiatives to reduce these inconveniences, deliveries are made during off-peak hours to avoid congestion.

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Optimizing Delivery Routes: 6 Strategies for Successful Delivery

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Last mile distribution

One of the most important and costly processes for companies is optimizing product delivery during the last mile. 

With an increasingly demanding customer and the constant advancement of technology, a simple mistake in delivery can have serious consequences for the company.

The focus of organizations is now on the end customer. A satisfied customer is a sure value. 

If we want to provide a last-mile service in line with demanding customers, we must consider the following strategies:

  • Implement the use of artificial intelligence. Both AI and machine learning son dos herramientas fundamentales en la gestión de las plataformas de logística. Con ellas la mejora de precisión en el pronóstico de envíos es de hasta un 90%. En temporada alta, ya sea Navidad o fechas señaladas como el Black Friday, las ventas pueden aumentar hasta un 300% y tanto los procesos como los equipos deben agilizarse más que nunca. Gracias a las previsiones inteligentes se puede mejorar la organización de las rutas, la optimización de los vehículos y qué repartidores hay disponibles. Invertir en Inteligencia Artificial merece la pena, ya que también su uso conlleva una reducción de los costes.

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Balancing cost and quality of service in last mile distribution

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Cost vs Quality of Service Balance in Distribution

La distribución de última milla tiene un objetivo muy simple: mover bienes desde un almacén o hub hasta su destino final. Pero, de ser tan simple, no serían necesarios ni expertos en logística ni ningún software de optimización. Los factores más relevantes a la hora de planificar la distribución son las restricciones y el entorno, la calidad … Read more

Why delivery companies need fleet optimization algorithms

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Seguimiento de rutas de reparto

¿Por qué las empresas de reparto necesitan algoritmos de optimización de flotas? Durante los últimos diez años, el comercio electrónico ha cambiado la forma en que las personas esperan recibir sus compras en línea. Actualmente, cuando un usuario compra un artículo en línea, espera que la entrega sea rápida, fiable y gratuita. De esta manera, … Read more

Beyond Distribution Planning

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Más allá del la planificación de tu flota - hedyla

Ya seas un vendedor al por mayor, una empresa logística, o tengas un pequeño negocio que necesita distribución, seguramente te hayas encontrado el problema en la planificación de tu flota, incluyendo: Qué vehículos usar. Los pedidos que entregará cada vehículo. El orden de entrega de los pedidos. La hora de comienzo de las entregas. Aunque … Read more

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Hedyla is a software company dedicated to optimize logistic processes of medium and large-sized companies through Artificial Intelligence.

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Hedyla Technologies S.L. ha sido beneficiaria de un Proyecto subvencionado por el CDTI con la colaboración del Ministerio de Ciencia e Innovación. Número de expediente SNEO-20201090
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