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Logistics

In this section of our blog you will find all the articles related to the logistics, operations and supply chain sector.

How to manage the logistics of an omnichannel industry

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feliz trabajadora negra revisando lista verificacion hablando su companero trabajo que lleva caja carton almacen distribucion - Cómo gestionar la logística omnicanal foto

Las estrategias de gestión omnicanal están a la orden del día, ya que ofrecen una experiencia de compra más completa a través de los canales como las tiendas físicas, tienda online, apps, entre otros. Además de que, según la Confederación Española del Comercio (CEC), más del 50% de los consumidores han visitado tanto canales físicos … Read more

4 ways to deal with stock-outs

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Mujer de tiro medio con tableta. Cómo afrontar una rotura de stock foto

There is no doubt that one of the most difficult and essential processes in all logistics is to maintain "perfect" inventory levels so that the entire distribution and, therefore, supply chain runs smoothly. Among the various factors that can cause stock-outs are external factors that often come unexpectedly, such as transportation strikes.

So, once it happens... What can you do about it? If you want to know the ways in which you can maintain an optimal availability rate and cope with a stock out, take a look!

Assess breakpoints

Once a stockout has occurred, it is advisable to analyze the points that have led to the depletion of safety stock. The main causes are poor sales forecasts and lack of internal and external communication, but external factors such as delayed shipments from suppliers or difficult-to-prevent changes in market trends also play a part.

To do this, you need to communicate with the rest of the staff to understand what happened. In this way, you will get a clearer picture about the causes of the stockout and can start taking action as soon as possible to avoid being out of stock for a longer period of time. 

Establishing a good replenishment policy

If it has been shown that the current replenishment policy is not sufficient to ensure optimal availability rates, it is best to employ the necessary improvements to start stocking the inventory as soon as possible. The measures to be reviewed to avoid stock-outs are as follows:

Inventory forecast

Undoubtedly, not making a good demand forecast is one of the most common causes that leads to stock-outs, especially if there are sudden peaks in demand, even if they are not seasonal. For this, you should study the inventory distribution data to detect its growth and adjust the stock to it with reliable suppliers.

Define rotation type

Along with demand forecasting, it is necessary to analyze how much time the goods spend in the warehouse until they are shipped, particularly if the product needs to be shipped well in advance. It is classified as high, medium and low.

Calcular plazos de entrega

Los plazos de entrega deben de ser los más cortos posibles para poder cubrir la demanda. Para conseguirlo, se debe mantener una comunicación eficaz con los proveedores, informando cualquier incidente presente y asegurando de que los pedidos lleguen a su destino.

Ilustración vectorial del concepto de escaneado de códigos de barras. Cómo afrontar una rotura de stock vector.

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Why is the cold chain so challenging?

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Página de aterrizaje isométrica de transporte refrigerado- retos de la cadena de frío vector

Cada tipo de producto acorde con el sector y las necesidades que posee tiene sus desafíos específicos en el momento de planificar sus rutas y transportarlos.  Uno de los más prominentes son los retos de la cadena de frío, de la cual es necesaria para abastecer y distribuir productos que suelen ser imprescindibles como alimentos … Read more

Logistics KPIs and the importance of analyzing them

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Cerrar la mano del hombre de negocios ocupado en el escritorio de oficina en el cuaderno y documentos de trabajo - KPIs de logística foto

In many professional fields, especially in business, it is of utmost importance to collect data and organize it into performance measures, better known as KPIs. Because you can analyze performance with numbers, either a quantitative or qualitative value, you have clearer information about the progress of your objectives.

It is very important to establish logistics KPIs because they have one of the highest costs along with manufacturing and marketing expenses. This would result in huge losses if they are not properly monitored. This is when we ask ourselves, what are the essential KPIs to accurately measure your logistics objectives?

If you want to learn more about the different areas of logistics where the logistics KPIs cannot be missing in the dashboard, take a look!

Storage

It should be noted that warehousing should not be confused with inventory or stock because these indicators do not indicate the stock itself. KPIs are about analyzing the internal processes that take place in warehouses, such as picking and order preparation.

An example of logistics KPIs used in warehousing is the unit cost of warehousing which calculates their respective expenses. Apart from that, to analyze warehouse performance and productivity there are the KPIs of on-time complete delivery rate and internal cycle time that serve to calculate the time elapsed between the order request and the dispatch of the order itself.

Inventory

This is, of course, one of the most important sections of logistics because it deals with the products themselves and the stock that circulates through the supply chain. In addition to the fact that classifying and sorting the different types of stock is paramount to its proper functioning, so is assigning objectives and their respective logistics KPIs.

For that, the KPIs to be commonly taken into account are the following: Stock Breakage to analyze how many times the inventory has been emptied and what can be improved, Stock Turnover to estimate how many times the inventory needs to be renewed and, of course, inventory costs. It is worth mentioning that a high Inventory Turnover means that profits are being made on sales.

Ilustración de concepto abstracto de kpi - KPIs de logística vector

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Do you know how to manage your fleet and get the most out of it with a TMS?

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Mujer joven preparando paquetes para su entrega y escaneando el código de barras - administrar tu flota con un TMS foto

Fleet management is an arduous and tedious task in which it is easier than we would like to admit to make mistakes and pay for it with poor performance and loss of time and money. For this, there is the option of managing your fleet with a TMS to assist, optimize and automate operations.

However, TMSs are thought to be a product exclusively for large companies with huge fleets because of their sophistication and complexity. But, nothing could be further from the truth, any company that manages its supply chain and operates with a transportation fleet has the need to install a digital control tower for cargo operations.

If you want to know the advantages of managing your fleet with a TMS, take note!

Allows you to organize the company and grow with it

Thanks to the ability of a TMS to collect all the necessary information about your fleet, your customers and your orders, it is now possible to unify all the data in one place. This eliminates the need to go through calls, messages, e-mails and paper documents to check the accuracy of accounts, which wastes too much time and resources.

Therefore, apart from the ease of successful operations, it is also much easier to collect the KPIs applied to your monthly, quarterly and even annual targets and act on them. In addition, thanks to better communication and customer satisfaction, it allows the company to grow and adapt to the volume of demand, because it takes just a few steps to add new vehicles and new hires to the TMS database.

Avoid unnecessary calls

Usually, to carry out the transportation of an order, either to get it to the distribution center or to the end customer, a team member is needed to make the calls to the shipper and the broker to check the availability of the freight and agree on a rate. With this action, too many time and financial resources have already been invested that may result in the freight not being available or not being dealt with by the people involved.

However, the TMS automates this entire process, as the system collects information about the available fleet and sends this data to customers in very few steps and time invested. In this way, time is spent on other tasks and relationships with shippers and intermediaries are improved, and they are eager to return to your services because of their effectiveness.

It is worth noting that shippers are looking for their automated processes to adapt to the automated processes of third parties, as they want to leverage their investment in a TMS and would be burdened by doing business with a logistics operator that does not have one.

Ilustración vectorial del concepto de solicitud de presupuesto de flete - administrar tu flota con un TMS vector

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How vacations affect logistics and distribution

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Worker loading a box onto a truck-vacation in the logistics vector

El verano ya está aquí y sin duda, es la época del año en la que la mayoría de la gente tiene y/o decide coger sus vacaciones. Se conocía que tiempo atrás gran parte de las empresas, incluidas con logística, cerraba por descanso del personal durante el mes de agosto, con la excepción de sectores … Read more

Hedyla at SIL 2022 Barcelona | Hedyla

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Hedyla en SIL 2022

El SIL, feria líder de Logística, Transporte, Intralogística y Supply Chain del sur de Europa, ha vuelto con fuerza a Barcelona. Como eje principal, la feria ha contado con la digitalización e innovación 4.0, la sostenibilidad y el talento. Desde Hedyla no hemos querido dejar pasar la oportunidad para presentar nuestras soluciones para la optimización … Read more

4 warehouse location strategies

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Foto de parque industrial creado por 4045 - ubicación de los almacenes foto

Since the onset of the pandemic, it is clear that there has been considerable growth in the e-commerce sector. As a result, both online retailers and logistics operators have been working to improve and implement all the necessary changes in both warehouse management and last mile distribution. However, large retailers and distribution centers have gone a step further in the location of warehouses.

It is known that 82 logistics parks have been opened in Spain in the last 2 years, which is a remarkable number considering the impact of the e-commerce boom. However, what strategies are companies taking into account to locate their activities in certain logistics centers? If you want to know them, take a look!

Product features

This is one of the most important factors in warehouse location, as the product to be sold or distributed is at the heart of the business model, whether B2B or B2C. However, several components of the goods such as durability, intrinsic stability and manageability must also be taken into account.

Durability is a fundamental aspect when it comes to fresh goods where they are to be consumed soon after purchase such as foodstuffs. While intrinsic stability is a relevant factor for chemical products where mishandling can cause health problems, so they are safer, being stored only at their production plant and points of use. Handling is also an important point for bulk liquids and aggregates because it is not convenient to store them in many places and transfer them until they are already packaged. 

Production capacity

Another aspect to be taken into account in the location of warehouses is the storage capacity, which is in proportion to the amount of manufacturing and/or imports by suppliers. But it is not only a question of focusing on volume, but also of paying attention to other factors such as the degrees of transformation.

The degrees of transformation classify goods on the amount of processing required to become the manufactured product they distribute (which may not necessarily be destined to the final consumer depending on the business model). A product with a low degree of conversion is usually one that needs only to be packaged and/or processed such as fresh goods. While an item with a medium or high degree of modification are those that go through many or many developments and changes to make them suitable for sale such as industrial materials, so it might need several warehouses for the raw materials involved in manufacturing.

Finally, it is known that a distribution network is mainly composed of the following three characteristics of the warehouses: the number, location and types of warehouses. Keeping these aspects in balance in order to be as profitable as possible is not at all simple because of the tedious planning involved, apart from the fact that there are two important factors to take into account: the composition and the distribution in the marketing network.

Vector de cadena de suministro - ubicación de los almacenes vector

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3 logistics solutions for the wine sector

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Manos de personas recibiendo una botella de vino tinto. soluciones logisticas para el sector vitivinícola foto

Two years after the beginning of the pandemic, we can confirm that the wine sector is gradually recovering. That is because its consumption is growing to pre-pandemic levels after the presence of really important stock problems derived from the lack of sales and reduction of production due to the pandemic.

On the other hand, we should not overlook the current threats to post-pandemic recovery that also affect the other sectors. From the increase in the price of supplies and their shortage to the political and economic tension caused by the invasion of Ukraine, which have left a difficult panorama for the restoration.

One solution for logistics in the wine sector to cope with the growing demand and cost savings has been digitization and with it, the use of digital tools to improve internal processes. In this case, the planning of e-commerce and in-store distribution routes and the tracking of deliveries through a mobile application have improved the quality of service. The customer is the most important thing and a mistake in delivery can be catastrophic for their confidence and satisfaction.

But let's go a step further and discover the ways in which logistics solutions for the wine industry can help in the supply chain. Here are some of them:

Transportation Management

An essential part of logistics in the wine sector is transportation. We are talking about a product that is sensitive not only to sudden temperature changes but also to the duration of the journey. To this must be added the weight of glass, which in some cases can exceed the maximum authorized weight and the consequent penalty that this entails.

With a transport management system we will be able to optimize not only the specific loads needed but also the routes. All this taking into account the necessary conditions to load wines safely without losing quality. This is undoubtedly one of the most important logistics solutions for the wine industry.

Traceability

Another problem faced by logistics in the wine sector is fraud caused by the lack of traceability of the origin of the products. To validate the quality of the wine, especially if it is a high-priced product distributed in bulk, it is very important to have the location of the components in hand. In this way, apart from fraud, we can avoid excessive costs for the recall of products in the market that are out of our control.

Among the logistics solutions for the wine sector, it is important to implement a warehouse management system or WMS, which has a good identification and coding system. That is because its correct labeling can unequivocally guarantee the origin of the products, particularly if they are high quality wines. Besides that a blockchain system is perfect in traceability. That is because such processes become more transparent for the consumer and more secure for producers thanks to its encrypted blockchain system.

Ilustración isométrica de la fabricación de vino. soluciones logísticas para el sector vitivinícola vector. soluciones logísticas para el sector vitivinícola

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What are the most sought-after professional profiles in logistics?

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perfiles-profesionales-de-logistica-1

Currently, the logistics and transportation sector is becoming quite relevant due to the growth of e-commerce. In addition to the fact that in Spain it is one of the most important sectors of the economy for having a GDP of 10% and managing more than 500 thousand shipments per year.

Looking at this panorama, it can be stated that it is an industry that employs more than 950,000 people, a very attractive figure for people who wish to start or change their professional career. But, specifically, what are the professional profiles in logistics, and is any specific training required to be able to exercise these professions?

If you are interested in knowing the details of the most in-demand logistics professional profiles, take a look!

Warehouse handler

Undoubtedly, this is the most sought-after profile in the logistics sector. Their tasks are based on assisting in the loading and unloading of trucks, checking and ordering merchandise, controlling the stock of products, preparing them and keeping the warehouse register up to date.

These professional logistics profiles require a minimum of compulsory secondary education. However, there are specialized training courses such as forklift or warehouse handler that help to have a solid foundation for the job performance and improve the curriculum. Not to mention the physical ability to move heavy objects from one place to another. cursos de formación especializados como la de carretillero o la de mozo de almacén que ayuda a tener una base sólida para el desempeño del trabajo y mejoran el currículum. Sin olvidar que se debe poseer la capacidad física para mover objetos pesados de un lugar a otro.

Forklift operator

The second most sought-after profile in the sector is the warehouse foreman. These are people who handle forklifts and are responsible for receiving, placing heavy packages on pallets and preparing orders and packaging.

Despite what the name suggests, the professional is not only focused on a specific task. In the case of forklift operators, they perform other complementary tasks such as reviewing delivery notes. In order to access this position, it is required to have passed the ESO and to undergo forklift training to be able to handle the machinery.

Delivery person

This is probably one of the professional logistics profiles that has gained much relevance in recent years due to the considerable growth of e-commerce. The delivery driver is in charge of getting the goods to their destination, as well as planning the most efficient schedules and routes. This task can be much easier if a route optimizer is used.

In addition to that, he also organizes the merchandise in his van and communicates directly with customers, having a certain profile of a salesman. To be able to work as such, you need a type B driver's license, own your own van and have all the documentation in order to be self-employed.

perfiles-profesionales-de-logistica-2

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Keys to understand the rise in fuel prices

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conductor-de-camión-sentado-en-su-cabina-de-camión-sintiéndose-preocupado-y-molesto-subida-del-precio-del-combustible

La gran subida del precio del combustible es un hecho, ya que está presente en nuestro día a día, además de preocupante. La mayoría de las personas están comentando por su gran impacto tanto a particulares como a empresas. Pero, ¿cuáles son las causas principales que nos ha llevado a este punto? ¿Qué consecuencias va … Read more

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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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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How Santa carries out his logistics for Christmas

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Retrato de hombre en Traje de Santa Claus - logística para Navidad

It is one of the most important times of the year and Santa Claus along with the heads of each department's help prepare well in advance their logistics for Christmas so that all the gifts arrive on time to their homes.

Looking at how demand has grown in recent years, it is no longer enough to manufacture and distribute toys with his sleigh alone. The logistical processes have become increasingly complex and demanding, so Santa Claus has an army of elves and reindeer ready to facilitate such complex logistics management for Christmas.

From raw materials

When Santa Claus has an idea in mind for a new toy, he works with the development department to get the product into production. He makes sure that the elves get the raw materials they need for manufacturing thanks to his good relationships with suppliers.

To fullfill this, the materials travel through a complicated network of logistics from the time they are mined for processing in a factory and so on until they reach the hands of the elves, who make the final product. In addition, their magical staff has a warehouse for all those goods used for the manufacture of toys.

Inventory storage

From raw materials to toys ready to be shipped, all this inventory must be stored in their respective warehouses. There all the items are packed, sorted and well ordered so that they can be easily located in a warehouse as big as Santa's.

Thanks to the latest technological advances, Santa Claus has not hesitated to automate the ordering systems and to optimize the stock databases in order to have total control over the inventory and avoid stock-outs.

Warehouse operating processes

When one of the thousands of warehouses Santa Claus has all over the world orders a certain amount of toys, the elves in charge of the warehouse get down to work. First they check the available stock, locate the order and pack it carefully so that the products are not damaged in transport. For this purpose, a picking optimizer is very helpful in locating inventory quickly.

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10 types of stock to consider for optimizing logistics operations

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Isometric logistic composition with images of warehouse figures of people with cardboard boxes cargo trucks and cars vector illustration-tipos de stock

When taking into account several aspects in order to optimize delivery times, route planning and inventory management, much attention must be paid to the product itself that is present in the warehouses. We are talking about the stock or inventory.

Of course, not all types of stock can be treated in the same way. There are stocks that need special attention because they are more perishable, fragile or have more restrictive measures than others.

Any sector must work very well with the following types of stock, which are classified according to their functions and operational criteria.

Types of stock according to their functionality

Not all inventory in a warehouse serves the same function. These include stock that is stored in a warehouse, in transit to its destination, and stock that has yet to arrive to replenish inventories. The following are mentioned below:

Active stock

These are the stocks available for sale and distribution, which move between maximum and minimum limits. Of course, they are of utmost importance as they are the type of stock that directly affects customer demands, therefore, their quantity, the detection of possible defects, among other aspects, must be well monitored.

Cycle stock

It consists of inventory that has a regular demand and has this function: to cover it without being affected by unusual times or circumstances. As it is a matter of satisfying the number of regular orders, it is of great importance to control its stock level through the implementation of safety stock, among other measures. If this were not the case, there would be a serious case of stock out. 

Seasonal stock

These are stocks designed to meet high demand at a peak of sales based on specific seasons such as the Black Friday or Christmas. First of all, you must calculate the expected number of orders based on previous years and make sure that this stock is suitable for distribution and sale.

Security stock

As its name indicates, it is the type of additional stock that is intended to anticipate possible problems with the active stock, for example, factory defects, delivery delays, among other things. It is also used to cover unexpectedly high demand, excluding certain times of the year.

It is of utmost importance to have this type of inventory, especially at peak demand to avoid stock-outs.

Speculative stock

For rather economic purposes, it is stock that is ordered more than necessary due to the benefit of price reductions and discounts. However, special care must be taken in distributing it among the active stock because an excessive quantity can cause an excess of inventory that can become inactive due to expiration dates and product obsolescence.

In-transit stock

Not to be confused with the active stock, these are the goods that are in an internal process of the company, either delivery or distribution. It is possible to take control over these stocks thanks to route optimizers that report in real time the progress of the order.

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Do you want to know how to reduce costs in fleet management?

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Reduce costs in fleet management - Image created by vectorjuice - www.freepik.es

Objective: to reduce costs in vehicle fleet management. This is the goal pursued by every logistics manager who wants to position his business as a leader in the sector. Although it is a complex task to carry out, in this article we are going to give you some keys to achieve it.

First of all we should know the causes of these high costs and how with digital technologies we are going to solve them.

  1. High fuel costs. Minimizing fuel consumption is a priority in fleet management, since it is estimated that 20% of the total cost of the fleet comes from fuel consumption.
  2. Vehicle maintenance. A correct maintenance of the fleet is a must for every company. To carry out the periodic revisions, to adopt security systems for the vehicles or to control and to solve any problem observed by a driver would be a good practice for any company, but unfortunately the lack of control in this area derives in an increase of costs of the management of fleets.
  3. Reckless driving and/or accidents. Reckless driving increases the probability of an accident and also the maintenance costs of vehicles, which suffer greater wear and tear.
  4. Costs that are unpredictable or difficult to control. Costs such as fines to drivers or fines for not having passed different vehicle inspections, even fines from insurance companies for irresponsibility on the part of carriers. Time lost in traffic jams or due to drivers' medical leave or time spent on vehicle inspections are just a few examples of costs that directly affect a company's fleet management.

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Optimizing Rotation with Hedyla

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Docks Almacén

Vamos a hablar de uno de los muchos casos de uso de nuestras soluciones, en especial de cómo el Business Inteligence puede ayudarte a optimizar la colocación de artículos y detectar problemas. La rotación en almacenes Las referencias en un almacén se distribuyen, normalmente, en múltiples zonas (e.g., A,B y C) dependiendo del tiempo estimado … 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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