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6 Common Mistakes When Calculating Transport Costs

Raquel Pérez — Thu, 12 Feb 2026 07:34:02 +0000

(And How to Avoid Them with Technology)

Accurately calculating transport costs is one of the most complex — and at the same time most decisive — tasks within logistics operations. Not because there is a lack of information, but because much of that information is scattered, not measured accurately, or analyzed too late.

In many companies, this calculation is still based on averages, spreadsheets, and estimates built with good intentions but poorly aligned with the daily reality of routes. Often, it is also done without the support of a TMS (Transportation Management System), making it difficult to gain a clear view of the true cost of each service.

The result is usually the same: margins gradually erode without an obvious cause, operational decisions become harder to justify, and it becomes difficult to identify where extra costs are being generated.

In this article, we review the most common mistakes when calculating transport costs, with clear examples, and explain how technology can help avoid them.

1. Focusing Only on the “Visible” Cost of Transport

One of the most frequent mistakes is reducing transport costs to the trip price, cost per kilometer, or agreed tariff.

In reality, transport involves many more elements:

Waiting times during loading and unloading
Empty kilometers
Delay penalties
Administrative and management costs
Incidents, re-deliveries, and returns

Typical example
A route appears profitable because its cost per kilometer is low. However, it regularly accumulates waiting times at the loading point and multiple weekly re-deliveries. By the end of the month, that “cheap trip” turns into one of the most expensive.

When these factors are not included in the calculation, the real cost is underestimated. Moreover, if each data point is stored in a different tool, it becomes very difficult to analyze them together and detect cost overrun patterns.

2. Not Linking Transport Costs to Specific Routes, Orders, or Customers

Another common mistake is working with aggregated costs: a monthly or annual average cost that is not broken down by route, order, or customer.

This prevents answering key questions:

Which routes are truly profitable?
Which customers consume more resources than expected?
Which type of service generates more incidents and additional costs?

Typical example
Two customers pay the same rate. However, one frequently requests last-minute changes and experiences failed deliveries, while the other maintains a stable operation. If both are analyzed using the same average cost, the difference never becomes visible.

When costs are not linked to real operations, decisions are based on perceptions rather than data.

3. Ignoring the Costs Derived from Poor Planning

Manual or poorly adjusted planning often results in:

Inefficient routes
Over- or under-utilized vehicles
Incomplete loads
Unnecessary kilometers

These errors may not always appear on a specific invoice, but they accumulate day after day as operational costs.

Typical example
Planning “as usual” leads to several vehicles departing half empty while others travel longer distances than necessary, increasing costs without improving service.

Proper route planning allows distances and capacities to be adjusted before executing the trip, reducing inefficiencies that are difficult to correct afterward.

4. Overlooking Time as a Cost Factor

Time is one of the most overlooked elements when calculating costs:

Staff overtime
Accumulated delays
Productivity loss
Inefficient fleet usage

When time is not measured or translated into cost, one of the most important levers for improving profitability is lost.

Typical example
A route completes all deliveries but consistently requires more hours than planned. By the end of the month, overtime costs are significant, even though the issue was not detected in time.

Measuring actual execution times helps identify bottlenecks and understand their financial impact before they become recurring problems.

5. Working with Outdated or Unreliable Data

Many cost calculations rely on outdated tariffs, theoretical assumptions, or incomplete data. In a constantly changing environment, this leads to decisions that are already misaligned with operational reality.

Typical example
A historical rate is still being used that no longer reflects fuel costs or actual execution times, causing constant margin deviations.

Working with updated and traceable data is essential to continuously recalculate transport costs and react in time to any deviation.

6. Separating Financial Management from Daily Operations

When cost management is performed afterward and in isolation, the ability to react is lost. The analysis arrives after the issue has already repeated itself several times.

An integrated approach connects planning, execution, and financial control, facilitating processes such as transport pre-invoicing and allowing deviations to be detected while operations are still ongoing. transport pre-invoicing and allowing deviations to be detected while operations are still ongoing.

Conclusion: Measure Better to Make Better Decisions

Accurately calculating transport costs is not just a financial matter; it is the foundation for making better operational decisions. The most common mistakes are usually not due to a lack of control, but to the difficulty of connecting scattered data and analyzing it with the right perspective.

Using a TMS focused on the daily management of routes does not eliminate costs, but it does allow companies to understand, control, and optimize them more precisely — turning transport into a true driver of efficiency.

Take your logistics to the next level

Discover how Hedyla's platform can help your company

Raquel Pérez

Communications & Marketing Responsible at Hedyla

Multimedia Technical Engineer. Working 11 years in the Audiovisual and Communication Department of a multinational company. Responsible for the Marketing and Communication Department in several companies in the technology sector.

Designing digital strategies. Innovating and adding value to communication.

What are resilient supply chains and how to build one?

Raquel Pérez — Wed, 26 Mar 2025 15:03:19 +0000

In an increasingly uncertain environment, where global disruptions have become a constant, resilient supply chains have become a key factor in maintaining competitiveness and ensuring business continuity. But what exactly does it mean to have a resilient supply chain? 0And how is it built?

What are resilient supply chains?

A resilient supply chain is one that has the ability to anticipate, adapt and recover quickly to any type of disruption, whether caused by weather events, health crises, geopolitical issues or internal operational failures.

Resilience does not mean simply resisting the impact, but responding in an agile and efficient manner, minimizing negative consequences on operations and maintaining the quality of customer service.

For carriers, resilience means being able to react quickly to unforeseen events such as cargo delays, blocked routes or unexpected peaks in demand, without impacting performance or operating costs.

Benefits of a Resilient Supply Chain

Implementing a resilient supply chain brings multiple operational, strategic and economic advantages:

Reduced risks and vulnerabilities: in the face of any unexpected event, a resilient organization can maintain operational continuity, reducing losses and avoiding service interruptions.
Increased adaptability: companies can adjust their processes, routes or suppliers quickly, which is key in sectors such as transportation, where logistical changes are commonplace.
Improved customer service: delivering on time, even in adverse situations, generates customer confidence and loyalty, which is essential in competitive environments such as retail or ecommerce.

Optimization of logistics resources: a resilient chain allows a more efficient use of vehicles, warehouses and personnel, avoiding bottlenecks and reducing downtime.
Long-term cost savings: although implementing resilience requires investment, it translates into lower losses due to interruptions and greater financial stability over time.
Better brand reputation: companies that demonstrate crisis responsiveness project an image of strength and commitment to their customers and logistics partners.

Cómo construir cadenas de suministro resilientes

Achieving a resilient chain is not a matter of luck, but of planning, technology and organizational culture. For carriers and logistics operators, this means adopting digital tools, improving communication between teams and partners, and anticipating potential crisis scenarios.

Here are the main keys to building resilient supply chains, with a practical approach adapted to the transport sector:

End-to-end visibility

Having a complete view of the state of operations, from the supplier to the end customer, allows informed decisions to be made and problems to be anticipated. This is where the use of logistics software comes into play, facilitating real-time tracking of goods, vehicles and resources.

Operational flexibility

The ability to change routes, transport modes or resource allocations quickly is essential. Carriers working with digital solutions can reroute deliveries or rearrange loads in a matter of minutes, avoiding further delays or costs.

Collaboration between stakeholders

Fostering fluid communication between all links in the chain (customers, suppliers, logistics operators and carriers) is essential to react quickly. An isolated supply chain is a vulnerable chain.

Digitalization and intelligence

The use of tools such as TMS software comes in. (transportation management systems) allows you to analyze scenarios, optimize routes and make data-driven decisions. This is especially useful in crisis situations or sudden changes, where a quick and effective response is needed.

Scenario-based planning

Having alternative plans and simulations for different types of disruptions makes it possible to act with greater certainty. Some advanced TMS offer simulators that allow you to anticipate how a disruption would affect the transportation network and how to adapt.

Transportation application example

Imagine a company that distributes fresh produce to supermarkets. One morning, one of its trucks is affected by the unexpected shutdown of a main road due to an accident. Without good preparation, this could lead to delays, loss of product and penalties for failure to keep to schedule.

However, thanks to a resilient supply chain and the use of logistics software, the carrier detects the incident in real time, calculates an alternative route from its TMS software, and redistributes some of the cargo to other nearby vehicles. In addition, it automatically informs customers of the new estimated delivery time.

With this responsiveness, the company maintains its level of service, avoids losses and demonstrates professionalism to its customers. That is the real difference that operational resilience makes.

Conclusion

Resilient supply chains are no longer an option, but a strategic necessity for any organization that relies on logistics processes. In a world where unforeseen events are part of everyday life - whether it's a transportation strike, a bottleneck at a border or a storm that paralyzes a key route - having a logistics network that can adapt quickly can make the difference between meeting a customer... or losing one.

For shippers, building resilience means something very concrete: being able to keep operating even when conditions change suddenly. It means having alternatives, real-time information and tools that allow them to reorganize resources in an agile and efficient manner.

And that's where digital solutions like TMS software or any other logistics software come into play to make data-driven decisions, automate critical processes and better coordinate with the other players in the chain.

The good news is that resilience is not just for large corporations. Every transportation company, no matter how small or medium-sized, can take steps toward a more robust, smarter and more prepared chain. And the sooner you start, the greater the benefits in the medium and long term.

Because in logistics, the question is no longer whether disruption will occur. The real question is: are you ready for it?

Take your logistics to the next level

Discover how Hedyla's platform can help your company

Raquel Pérez

Communications & Marketing Responsible at Hedyla

Designing digital strategies. Innovating and adding value to communication.

How can predictive logistics transform your planning?

Raquel Pérez — Fri, 31 Jan 2025 07:38:22 +0000

Transportation companies face the constant challenge of optimizing their operations to keep up with market demands. This is where predictive logistics comes in, a key tool for transforming the way planning and decision making is done in the logistics sector. But what exactly is predictive logistics and how can it benefit shippers?

What is predictive logistics?

Predictive logistics is based on the use of technologies such as artificial intelligence (AI) and machine learning to analyze large volumes of data, identify patterns and predict future events. In the context of transportation, this means anticipating changes in demand, optimizing routes and reducing operating costs, among other benefits.

For example, a carrier can forecast peak demand on certain routes or anticipate possible disruptions due to factors such as weather or traffic. This allows for better planning and more efficient allocation of available resources.

Benefits of predictive logistics for shippers

Implementing predictive logistics can mark a turning point in carriers' operations. Thanks to its ability to analyze and forecast scenarios, this tool not only improves operational efficiency, but also opens the door to new optimization opportunities.

Optimize routes and delivery times

With a Route optimizer software based on predictive logistics, carriers can identify the best routes for their shipments in real time, taking into account factors such as traffic, weather and unloading times. This not only improves delivery times, but also reduces fuel and vehicle maintenance costs.

Reduction of operating costs

By anticipating fluctuations in demand and optimizing cargo capacity, carriers can avoid unnecessary trips and improve fleet utilization. In addition, predictive logistics can help reduce the risk of fines for missed deadlines or documentation errors.

Improved customer experience

Accurate forecasts enable carriers to offer more reliable delivery times and keep customers informed at all times. This builds trust and strengthens business relationships.

Use cases of predictive logistics

Predictive logistics not only helps solve day-to-day problems, but also anticipates and prevents future challenges. From forecasting demands to avoiding disruptions, the use cases are varied and tailored to the needs of each business. Below, we explore some practical applications:

Demand planning: companies can anticipate peaks in activity by adjusting fleet and driver availability. For example, one logistics operator found that during local holidays, demand increased in certain areas, allowing it to reinforce deliveries and satisfy customers without delays.
Inventory management: integrating a TMS Software with predictive logistics tools, deliveries can be synchronized with the actual needs of the warehouses.
Prevention of interruptions: identify potential supply chain risks before they occur, such as port delays or customs problems. For example, one carrier adjusted routes to avoid unexpected road closures due to construction work.

How to get started with predictive logistics?

Adopting predictive logistics does not require completely transforming your operation overnight. You can start with simple steps:

Collect and organize your data: the foundation of predictive logistics is data. Make sure your operation collects relevant information about your shipments, customers and vehicles. To do this, you can implement tools that automate real-time data collection, such as fleet sensors or shipment tracking systems.
Implements scalable technologies: look for solutions that fit your current business needs and can grow with you. For example, start with a simple data analysis tool and, over time, integrate it with a more advanced system that combines multiple functionalities.
Train your team: predictive logistics is not just about technology; it also requires people to understand and use the tools effectively. Invest in training so your team learns how to interpret the data and apply the predictions in operational decision making.
Define clear objectives: before implementing these tools, set specific goals you want to achieve, such as reducing delivery times, optimizing routes or improving the accuracy of demand forecasts. This will help focus efforts and measure the real impact of predictive logistics.
Continuously monitors and adjusts: predictive logistics is a dynamic process. Analyze the results obtained, identify areas for improvement and adjust your strategies to maximize long-term benefits.

Conclusion

Predictive logistics is an opportunity for carriers looking to optimize their operations and stay competitive in an increasingly demanding market. From route optimization to improving the customer experience, the possibilities are endless. Now is the time to start exploring how this technology can transform planning in your business and take your operations to the next level.

Take your logistics to the next level

Discover how Hedyla's platform can help your company

Raquel Pérez

Communications & Marketing Responsible at Hedyla

Designing digital strategies. Innovating and adding value to communication.

What is a consolidation warehouse in the supply chain?

Raquel Pérez — Fri, 22 Nov 2024 07:33:16 +0000

In the transportation industry, consolidation warehouses are necessary to optimize the supply chain and meet industry efficiency requirements. As companies seek to reduce costs and minimize environmental impact, product consolidation has become a key strategy. These warehouses aggregate goods from different origins and enable more efficient transportation, thus transforming logistics and industry operations.

What is a consolidation warehouse?

A consolidation warehouse is a logistics facility designed to receive, store, group and distribute goods. This type of warehouse is used to receive goods from many different carriers and combine them into larger, more efficient shipments, thus optimizing loading capacity and reducing the number of trips required for delivery.

Practical example: imagine several small businesses that need to ship products to the same destination. Instead of sending each shipment separately, which increases costs and carbon emissions, they can send their products to a consolidated warehouse, where they are combined into one larger shipment.

How do consolidation warehouses work?

I magazzini di consolidamento operano attraverso un flusso di lavoro specifico che comprende diverse fasi:

Goods receipt

Goods arrive at the warehouse from different suppliers or points of origin. At this stage, an efficient receiving process is crucial, which will allow a quick identification and placement of the products.

Classification and grouping

The next step is to sort the goods according to specific criteria such as destination, product type, weight and size. This phase is important to ensure optimal product consolidation and maximum efficiency of combined deliveries.

Combined loads

Once the goods are sorted and grouped, they are combined into larger shipments, filling entire trucks or containers, maximizing available space and reducing the number of vehicles needed for transport.

Final distribution

Consolidated merchandise is shipped to its destination. This process optimizes shipping routes, reduces shipping costs and times, and improves the utilization of logistics resources.

Advantages of consolidation warehouses for the transportation industry

Consolidation warehouses are an essential tool in transportation, maximizing operational efficiency, reducing costs and minimizing environmental impact.

Reduction of operating costs

Consolidation allows carriers to maximize their vehicle loads, reduce the unit cost of products shipped, and increase profits per trip. This efficiency is especially important in times of high competition and low profits.

Lower environmental impact

The use of consolidation warehouses helps reduce the number of vehicles on the road, leading to a reduction in greenhouse gas emissions. This practice is important for companies that want to comply with environmental regulations and improve their sustainability.

Improved route efficiency

Route optimization is a key advantage of consolidated warehouses. By consolidating products and planning routes more strategically, companies can avoid unnecessary trips and reduce travel time. This makes deliveries faster and more efficient.

Technologies supporting consolidation warehouses

Technology plays an essential role in warehouse success, providing advanced tools to improve management, streamline processes and ensure the quality of logistics operations. Below we analyze the key technological innovations that make these warehouses efficient and productive.

Transportation Management Software (TMS)

Transportation management systems or TMS enable logistics companies to plan and coordinate consolidated shipments efficiently, improving real-time visibility and facilitating decision making.

IoT and sensor solutions

The use of IoT devices and sensors in consolidation warehouses helps monitor temperature, humidity and other critical commodity conditions, ensuring that product quality and safety are maintained throughout the process.

Artificial Intelligence (AI) and Machine Learning

These technologies make it possible to predict demand patterns and optimize shipment consolidation, improving the overall efficiency of the operation.

Challenges in the implementation of consolidation warehouses

Implementing a consolidation warehouse is not without its challenges. Some of the most common challenges include:

Infrastructure investments

Consolidation warehouses require significant investment in infrastructure, which may include building facilities, acquiring technology and hiring specialized personnel.

Complex coordination

Managing multiple suppliers and types of goods can be complex. This requires a robust management system and clearly defined processes to avoid errors and delays.

Technology integration

Implementing and maintaining advanced technological solutions, such as a TMS and control systems, can be costly and requires adequate training of personnel to ensure proper operation.

Use cases: how consolidation warehouses help shippers

Transportation companies that implement consolidation warehouses can transform their operations in a number of ways:

Cost optimization: companies can offer more competitive rates and improve their profit margin by maximizing cargo capacity and reducing the number of trips required.
Greater flexibility: consolidation warehouses make it possible to adapt quickly to changes in demand, improving responsiveness to market fluctuations.
Expansion into new markets: carriers can reach more destinations efficiently by consolidating shipments for long-haul routes.

Use of delivery route optimizing software

A key element that further enhances the benefits of consolidation warehouses is the implementation of a Route optimizer software delivery routes. This tool allows transport companies to plan delivery routes more strategically, taking into account factors such as traffic, weather conditions and time constraints.

The use of optimization software and consolidated processes ensures efficient distribution of goods, reducing delivery times and fuel consumption. For example, when a load is consolidated in a warehouse, the software can calculate the best route to maximize delivery and minimize miles traveled, resulting in a more sustainable and cost-effective operation.

Key benefit: companies using route optimization software in conjunction with centralized warehousing can improve delivery accuracy, reduce logistics costs and increase customer satisfaction by reducing delivery time.

The future of consolidation warehousing in the supply chain

The role of consolidation warehouses evolving as companies adopt advanced technologies, such as autonomous vehicles and automated product handling systems. The growth of e-commerce will also drive the need for consolidation, especially for last-mile utilities.

Future trends:

Process automation: implementation of robots and artificial intelligence systems for product classification and grouping.
Improved sustainability: increased adoption of environmentally friendly practices, such as the use of electric vehicles for distribution.
Collaborative platforms: integration of digital platforms that allow carriers to collaborate in shipment consolidation, further optimizing operations.

Conclusion

Consolidation warehouses have become an important strategic tool for transportation companies. They not only reduce costs and increase efficiency, but also contribute to more sustainable and flexible operations. Adopting a consolidated approach can make the difference between maintaining a relevant market position or falling behind.

Take your logistics to the next level

Discover how Hedyla's platform can help your company

Raquel Pérez

Communications & Marketing Responsible at Hedyla

Designing digital strategies. Innovating and adding value to communication.

What is Lead Time in logistics and how to optimize its reduction?

Raquel Pérez — Thu, 10 Oct 2024 08:29:37 +0000

Lead time in logistics is a key factor affecting the efficiency of the supply chain. This concept measures the time from the time an order is placed until it is received by the customer. Reducing and optimizing lead times can create a competitive advantage and improve customer satisfaction.

Definition of Lead Time in logistics

Lead Time refers to all the processes involved from the initiation of an order to its delivery. This phase can include several stages, such as purchasing, production and transportation of raw materials. Tools such as the TMS software (Transport Management System) allow tracking and optimizing this time, providing greater visibility and control at each stage of the logistics process.

Types of Lead Time

There are several types of Lead Time within the supply chain, each related to a specific phase of the process. Optimizing each of them is essential to achieve an overall reduction in lead time:

Procurement Lead Time: is the time from the time an order for materials or products is placed with a supplier until it is received. It includes supplier processing time, production time (if applicable) and shipping time to destination. Supplier performance and geographic distance play an important role in order fulfillment times. It is important to work with reliable suppliers and use tools such as TMS software to manage this time more effectively.
Production Lead Time: this type of Lead Time covers the period from the time raw materials enter the manufacturing plant until the final product is manufactured and ready for distribution. This Lead Time is directly affected by factors such as production capacity, efficiency of internal processes and coordination between departments. Reducing lead time requires optimizing internal operations, eliminating bottlenecks and automating processes wherever possible.
Lead Time for delivery: is the time from the time the product leaves the warehouse or factory until it reaches the consumer. This time is influenced by shipping efficiency, route selection and the company's distribution policies. Using logistics software that can manage real-time tracking and optimize shipping routes can be key to reducing lead times for these types of orders.

Factors affecting Lead Time

Several factors influence the Lead Time duration in a logistics operation. It is essential to identify these elements to find areas for improvement.

Suppliers and response times

Supplier relationships can be a decisive factor. Suppliers who fail to meet deadlines may extend Lead Time. It is extremely important to review supplier policies and adjust lead times if necessary.

Inefficient production processes

Bottlenecks or manual production processes can increase lead times. Optimizing these internal processes reduces production time.

Transportation and distribution

Transportation is an important variable. Choosing an efficient distribution network and tracking shipments in real time are important factors that help shorten delivery times. A logistics software that integrates real-time tracking and route management may be the key to reducing this time.

How to optimize and reduce Lead Time in logistics?

Optimization of internal processes

Mapping logistics processes and eliminating unnecessary or inefficient steps can significantly shorten lead time. Implementing methods such as lean management or value-added analysis can speed up production.

Automation and digitization

Implementing technologies such as resource planning systems (ERP) or warehouse management systems (WMS) can help optimize every stage of the logistics process. These tools improve coordination and reduce errors that can increase delivery times.

Collaboration with strategic suppliers

Working closely with suppliers to reduce lead times can have a big impact. Negotiating more efficient utility contracts or choosing suppliers that are geographically closer are important steps in shortening procurement lead times.

Conclusion

Lead Time in logistics is one of the factors that has the greatest impact on increasing the competitiveness and efficiency of companies. Minimizing it allows optimizing the supply chain and responding faster and more efficiently to market demand. Reducing Lead Time brings many benefits, such as increased customer satisfaction, lower operating costs and improved planning capabilities.

Implementing technology tools such as TMS software or logistics software can optimize every stage of lead time, from delivery to final delivery. These technology solutions provide real-time visibility, route analysis and internal process improvements, helping companies identify inefficiencies and respond quickly to any disruptions.

In addition, partnering with strategic suppliers and automating internal processes are key factors that significantly shorten this time. In an environment where speed is a competitive advantage, reducing Lead Time will become a top priority for long-term success.

Take your logistics to the next level

Discover how Hedyla's platform can help your company

Raquel Pérez

Communications & Marketing Responsible at Hedyla

Designing digital strategies. Innovating and adding value to communication.

Transport routing in logistics: How to do it?

Raquel Pérez — Thu, 12 Sep 2024 13:36:42 +0000

It has already been mentioned on several occasions that efficient logistics management is essential to optimize transport operations and ensure successful results. A key tool to achieve this goal is the transport routing, a document that allows you to optimize resources, shorten deadlines and ensure the fulfillment of logistical objectives. In this article, you will learn how to create an effective transportation routing for your company.

What is a roadmap and why is it important in logistics?

A logistics roadmap is a detailed plan that shows the routes, times, resources and controls needed to execute an efficient transport. This is important because it acts as a guide to help coordinate all aspects of the flow of goods, from origin to destination.

In an environment where timeliness and efficient use of resources are paramount, having an action plan in place will help avoid errors, delays and financial losses. It also provides real-time visibility of shipment status, improving decision making and the ability to respond to unforeseen circumstances.

Benefits of having a roadmap in logistics transportation

The use of a routing sheet in logistics transportation offers numerous benefits, among which the following stand out:

Optimization of time and resources: the new system allows the creation of more efficient routes, which translates into shorter travel times and lower fuel consumption.
Correct planning: the logistics process: facilitates the coordination between the different participants in the logistics process, from the transporter to the customer.
Increased safety: the presence of control points and fixed schedules makes it possible to anticipate risks and take preventive actions.
Transparency in monitoring: with technologies such as TMS software(transportation management system) or a route optimizer, the roadmap allows processes to be tracked in real time, ensuring that all stakeholders are aware of progress.

Key elements of a transport routing

Per essere efficace, un itinerario di trasporto deve includere diversi elementi essenziali:

Clear objectives: define shipping expectations, such as delivery time and fulfillment.
Detailed routes: determining the best possible routes, taking into account factors such as traffic, road conditions and distance.
Timelines: set specific times for each stage of shipment, from loading to final delivery.
Vehicle information: provide detailed information on vehicle type, load capacity and maintenance requirements.
Control points: designate specific locations and times to check shipment progress, facilitating tracking and quality control.

How to create a transportation routing in logistics?

Creating a logistics routing may seem like a complex task, but by following a structured process, you can simplify it and ensure its effectiveness. Below are step-by-step instructions.

Step 1: define the objectives of the road map

The first step is to identify the objectives you want to achieve with the routing. These may include such things as shortening delivery times, optimizing fuel consumption or ensuring cargo security. Identifying these objectives from the outset will allow you to plan more accurately.

Step 2: gather relevant information for the roadmap

It is important to have all the information you need to create an efficient roadmap. This includes information on load capacity, vehicle characteristics, road conditions and any restrictions that may affect transportation. We have previously discussed the importance of relying on technology tools such as TMS software and route optimizers for accurate, real-time data.

Step 3: plan routes and transport times

After gathering information, the next step is to plan the route and schedule. It is important to take into account factors such as traffic flow and necessary stops and checkpoints. Using a route optimizer can be very helpful at this stage to find the most efficient routes and minimize travel time.

Step 4: include specific details of the transport in the routing

In addition to routes and times, the waybill should include detailed information about the transport, such as the type of goods, special requirements (e.g., transport of refrigerated products), the condition of the vehicle, and documents.

Step 5: review and adjust the roadma

Before implementing the routing, it is crucial to review it and make any necessary adjustments. This allows you to identify possible errors or areas for improvement, ensuring that everything is in order before transportation begins.

Step 6: implement and monitor the road map

Once the roadmap has been reviewed, it is time to execute it. During implementation, it is important to monitor progress to ensure that everything is going according to plan. This is where TMS software becomes important, as it facilitates real-time monitoring and allows for quick adjustments if necessary.

Example of a transport routing

A practical example of a transport routing might include the following elements:

Target: the project will deliver 10 tons of food in 24 hours.
Route: from the central warehouse to the distribution point in the destination city, using the A1 highway to avoid urban congestion.
Schedule: departure at 6:00 AM, first stop at the checkpoint at 9:00 AM, estimated arrival at destination at 5:00 PM.
Vehicle: 12-ton refrigerated truck, in good state of maintenance, with certified driver.
Control points: verification at two stops along the route and continuous GPS tracking.

Conclusion: the importance of a well-planned roadmap in the success of logistic transportation

In short, a well-planned routing is essential for successful logistics transport. This not only optimizes time and resources but also increases the safety and transparency of the process. By using tools such as TMS software and a route optimizer, companies can significantly improve the efficiency of their logistics operations, ensuring on-time and interrupted deliveries.

Take your logistics to the next level

Discover how Hedyla's platform can help your company

Raquel Pérez

Communications & Marketing Responsible at Hedyla

Designing digital strategies. Innovating and adding value to communication.

What is an ABC Inventory Analysis?

Raquel Pérez — Fri, 19 Jul 2024 07:24:03 +0000

ABC Analysis is an inventory management technique that classifies products according to their relative importance. This importance is usually determined by the value and frequency of use of the product. Category A includes the most valuable and most frequently used products, B refers to products of moderate value and utility, and C includes the least valuable and least frequently used products.

Importance of ABC analysis in inventory management

ABC analysis is important for effective inventory management because it enables companies to identify and focus on the most important products. This approach helps optimize resources, reduce costs and increase the availability of key products, which supports better decision making and more effective inventory management.

What is an ABC inventory analysis in logistics?

ABC analysis in logistics refers to the classification of inventories according to their value and their impact on the supply chain. Products are categorized into three groups:

A: high value products with low quantity.
B: products of moderate value and moderate quantity.
C: products of low value but in large quantities.

Differentiation between ABC inventory analysis and other types of analysis

ABC analysis differs from other inventory management techniques such as XYZ analysis (which focuses on demand variations) or VED analysis (which classifies products according to their importance in system operations). While ABC analysis focuses on value and frequency of use, other analyses may consider aspects such as importance or predictability of demand.

How to perform an ABC inventory analysis step by step?

To carry out an effective ABC analysis, it is essential to follow a structured process. The detailed steps are described below:

Step 1: Classification of inventories

The first step is to make a list of all the products in your inventory and rank them by importance. This is usually done based on the annual monetary value of each product (unit price multiplied by the quantity used or sold during the year).

Step 2: Frequency of use analysis

In this step, the frequency with which each product is used or sold is analyzed. Products that sell faster are usually more important for the continuity of the company's operations.

Step 3: Inventory value assessment

The total cost of each product in stock is estimated. This helps to determine which products represent the largest financial investment and therefore deserve more careful management.

Step 4: application of the results to optimize the warehouse

Finally, the results of the analysis are used to make strategic decisions regarding inventory management. This may include adjusting inventory levels, changing reorder strategies and optimizing warehouse space utilization.

Benefits of ABC analysis in logistics management

ABC analysis provides many benefits, such as improved asset management, lower inventory costs, increased operational efficiency and a better ability to respond to customer needs. By focusing on essential products, companies can ensure greater availability of these products and reduce excess inventory of non-essential products.

Specific applications of ABC analysis

ABC analysis can be applied in various areas within logistics and business management. Some specific applications are explored below:

ABC product analysis: how it is applied and what benefits it offers

This analysis helps identify the products that generate the most revenue and require more careful management. Products in category A, for example, must have constant monitoring and more rigorous replenishment strategies.

ABC customer analysis: identification of key customers

Classifying customers into A, B and C categories allows you to identify the most valuable customers and focus your utility and marketing efforts on them. A customers are those who generate the most revenue and therefore require preferential treatment.

ABC warehouse analysis: optimization of space and resources

In the warehouse context, ABC analysis can be used to organize space more efficiently. Category A products should be located in easily accessible areas to reduce picking times and improve operational efficiency.

Conclusion

In summary, ABC inventory analysis becomes an important tool in modern logistics management, enabling companies to optimize resources and effectively prioritize both products and important goods. This approach not only promotes better inventory management, reduces warehousing costs and increases operational efficiency, but also improves the ability to respond to market demand.

For shippers and distributors, implementing ABC analysis not only optimizes inventory management, but also improves route planning and ensures efficient delivery of key products. The integration of structured inventory management approaches can enhance these benefits by providing the tools to make strategic decisions and continuously optimize processes.

In this respect, the use of logistics software or TMS software (transport management software) plays a key role. These technology platforms not only facilitate the implementation of ABC analysis, but also improve visibility and control over the entire supply chain, enabling transportation professionals to maximize operational efficiency and provide superior utility to their customers.

Take your logistics to the next level

Discover how Hedyla's platform can help your company

Raquel Pérez

Communications & Marketing Responsible at Hedyla

Designing digital strategies. Innovating and adding value to communication.

What is the Single Administrative Document?

Raquel Pérez — Thu, 20 Jun 2024 08:48:50 +0000

In international trade, the exchange of goods between countries requires a series of specific procedures and documents to ensure that the transaction is carried out legally and correctly. One of these important documents is the Single Administrative Document (SAD), which helps to simplify and optimize customs procedures. Correct use is important to optimize logistics and avoid unnecessary delays.

What is the Single Administrative Document? Definition and purpose

The Single Administrative Document, known as SAD, is a standard form used in international trade to declare imported and exported goods. Its main purpose is to facilitate and control the flow of goods across borders, ensuring compliance with customs regulations.

The SAD serves as an official declaration of entry or exit of goods from the country, containing detailed information about the goods, value, origin, destination and other relevant data. This document is necessary to ensure the legal and effective implementation of international trade transactions.

The SAD is divided into two main types: Import SAD and Export SAD, each with its own requirements and procedures. Below we will look at each of these types in detail.

Import SAD

An import SAD is required to bring goods into the country. Proper handling ensures that goods comply with customs and tax regulations, avoiding legal and logistical problems.

What is the Import SAD?

The import SAD is a document used to officially declare the entry of goods into the customs territory. It contains information on the sender, consignee, description of the goods, value and applicable taxes.

Steps for the processing of the import SAD

Preparation of documentation: Gather all necessary documents such as commercial invoices, certificates of origin and shipping documents.
Presentation of the SAD: complete and present the SAD to the corresponding customs authority in electronic or paper format.
Inspection and control: Customs authorities may carry out inspections to verify the accuracy of the declaration.
Payment of taxes and duties: pay the taxes and duties applicable to the imported goods.
Release of goods: after completion of the above steps, the goods are released for distribution.

Export SAD

SAD export agreements are important for getting goods out of the country, ensuring that products comply with all tax and customs regulations before leaving the country.

What is the Export SAD?

A SAD Export Agreement is a document used to officially declare goods shipped out of a country. It contains detailed information about the exporter, importer, product description, value and destination.

Steps for the processing of the export SAD

Steps 1, 2 and 3 are the same steps as for the processing of the import SAD.

Export authorization: once the declaration is approved, the goods are authorized to leave the country.
Transportation of goods: the goods are transported to the country of destination.

Importance of the Single Administrative Document in global logistics

The Single Administrative Document plays an important role in the global logistics sector, as it facilitates the efficient flow of goods across borders, reducing the time and costs associated with international trade.

Role of the single administrative document in logistics operations

The SAD is essential to coordinate and manage the flow of goods, ensuring compliance with all customs regulations. It also promotes transparency and traceability in the supply chain.

Benefits of proper management of the single administrative document.

Reduced delays: proper SAD processing will avoid delays at customs, ensuring fast and efficient delivery.
Regulatory compliance: ensuring that all transactions comply with laws and regulations, avoiding fines and penalties.
Cost optimization: efficient SAD management can reduce the administrative and transaction costs associated with international trade.

Conclusion

In short, the Single Administrative Document is essential to effectively manage international trade. Proper processing not only ensures compliance with customs regulations but also optimizes logistics and reduces the costs and time involved. For companies looking to improve their logistics operations, using technology solutions such as TMS (Transportation Management System) software and last mile software can be key to making SAD management and the entire supply chain more efficient.

The integration of the TMS software enables centralized and automated management of all aspects of transportation, from planning and execution to real-time monitoring. On the other hand, last-mile software optimizes final delivery, ensuring that products reach customers quickly and efficiently.

At Hedyla we understand the importance of integrated logistics management and provide innovative solutions that help companies meet the challenges of international trade. With proper implementation of the Single Administrative Document and the support of advanced technologies, greater efficiency and competitiveness in the global marketplace can be achieved.

Take your logistics to the next level

Discover how Hedyla's platform can help your company

Raquel Pérez

Communications & Marketing Responsible at Hedyla

Designing digital strategies. Innovating and adding value to communication.

What is EOQ or Economic Order Quantity and How is it Calculated?

Raquel Pérez — Wed, 29 May 2024 07:24:16 +0000

Effective inventory management is essential for any company wishing to maximize profits and minimize operating costs. In this context, economic order quantity (EOQ) models appear as an invaluable tool. In this article, we will take a closer look at what the EOQ is, how to calculate it, and the benefits and limitations of using it for inventory management, including the last mile software.

What is the EOQ or Economic Order Quantity model?

The EOQ model is a technique used in inventory management to determine the optimal quantity a company should order for each order to minimize total inventory costs. The model is based on a trade-off between inventory costs (warehousing costs) and ordering costs (purchasing or ordering costs).

This model was first introduced by Ford W. in 1913. Developed by Harris and later R. H. Wilson and 1934. Since then, it has been widely used by companies in various industries due to its ability to optimize inventory levels and reduce associated costs.

Calculation of the Economic Order Quantity model

The calculation of EOQ requires several variables that must be carefully considered. The basic formula for EOQ is:

Where:

D represents the annual demand for the product.
S is the cost of placing an order.
H is the cost of holding a unit in inventory for a period of time.

The objective is to find the point where inventory holding costs (warehousing costs) and ordering costs are minimal. This optimal point represents the economic order size that minimizes total inventory costs.

Benefits of the EOQ model in inventories

Implementing an EOQ model offers several important benefits to companies looking to improve inventory management. These benefits go beyond order-level optimization and associated cost savings. Here are some of the key benefits:

Reduction of total inventory costs: this model helps companies reduce total inventory costs by finding the optimal balance between inventory costs and ordering costs. By determining economic order sizes, companies can avoid excessive inventory levels that generate unnecessary warehousing costs. They can also avoid ordering too frequently, which results in high costs. By optimizing these two factors, companies can realize significant savings in total stock costs.
Optimization of inventory levels: one of the key advantages is its ability to optimize inventory levels. By determining the optimal order quantity for each order, EOQ ensures that a company maintains adequate inventory levels to meet customer demand without creating excesses or shortages. This is especially useful for industries where demand fluctuates seasonally or unpredictably. By maintaining optimal inventory levels, companies can ensure greater product availability for customers while reducing costs associated with warehousing and stock-outs.

Improved operational efficiency: another key benefit of EOQ is its ability to improve a company's operational efficiency. By reducing the costs associated with inventory, EOQ frees up resources that can be allocated to other important areas of your business, such as research and development, marketing or customer utility. In addition, by optimizing inventory levels, EOQ helps reduce lead times and delays in the supply chain, increasing overall business efficiency and productivity. These operational efficiencies can have a positive impact on the company's competitive position in the marketplace.

Adaptability to different business environments: the EOQ model is highly adaptable and can be used in a variety of commercial environments, from manufacturing to retail to utilities. It can also be used to manage inventory of perishable, durable or other types of products. This versatility makes EOQ a valuable tool for a wide range of companies, regardless of size or industry.
Integration with last mile software: last mile software refers to technology solutions that optimize the final stage of the supply chain, i.e. the stage at which products are delivered to the end customer. Integrating EOQ with last mile software can further improve the efficiency of inventory management.
El software última milla permite:
- Real-time tracking: monitor the status and location of orders, ensuring that inventory levels adjust quickly to changes in demand.
- Order automation: automatically generate replenishment orders based on EOQ calculations and current inventory levels, reducing the risk of stock-outs.
- Route optimization: improve delivery logistics, reducing transportation times and associated costs, which can positively influence inventory holding costs.

Limitations of EOQ in inventories

Despite its many advantages, the EOQ model has some limitations that should be taken into account.

Simplified assumptions: this model assumes certain ideal conditions, such as constant and known demand, constant order over time and support costs. These assumptions may not fully reflect the complexity of the real business environment.

Lack of consideration of demand variability: the model does not account for demand volatility, which can lead to errors in determining optimal inventory levels in environments with large fluctuations in demand.

Ignorance of the costs associated with inventory depletion: does not take into account the costs associated with shortages, such as lost sales due to product shortages.

Conclusion: efficiency with EOQ

Despite its limitations, the EOQ model remains a valuable tool for effective inventory management. By understanding what EOQ is, how it is calculated, and its benefits and limitations, companies can make informed decisions and even improve inventory management efficiency in the context of last-mile software. Ultimately, improving efficiency through EOQ requires a balanced approach that considers the benefits and limitations of the model and consciously tailors them to the unique circumstances of each business.

In summary, EOQ is a powerful tool that can help companies optimize inventory levels and reduce associated costs. This results in higher profits and a sustainable competitive advantage in the marketplace.

Take your logistics to the next level

Discover how Hedyla's platform can help your company

Raquel Pérez

Communications & Marketing Responsible at Hedyla

Designing digital strategies. Innovating and adding value to communication.

What is the Stock Keeping Unit (SKU) in logistics and what is its importance?

Raquel Pérez — Fri, 17 May 2024 06:21:17 +0000

The Stock Keeping Unit (SKU) is a key concept in inventory and logistics management. This is a unique identifier for each product or product version in your inventory, which facilitates tracking and management. In this article we analyze what stock keeping unit (SKU) is, its importance, how to implement it and how to use it in logistics to improve efficiency and inventory management.

What is a SKU or Stock Keeping Unit?

To begin with, let's learn what a Stock Keeping Unit is. A SKU or Stock Keeping Unit is a unique code assigned to each product or product variant for identification in an inventory. This code can consist of letters, numbers or a combination of both, and its main function is to facilitate product tracking in inventory and logistics processes. A well-designed SKU system is essential for efficient and accurate product management.

Importance of the Stock Keeping Unit (SKU) in logistics

SKUs are very important in logistics because they enable more efficient inventory management. By assigning a unique identifier to each product, companies can track the movement of goods and optimize operations. SKUs also make it easier to track products and make decisions based on accurate data.

Efficient management: SKUs enable accurate inventory management, facilitating product identification and optimizing the supply chain.
Traceability: SKUs allow tracking the movement of products through the supply chain.
Optimization: SKUs help companies analyze product performance and make data-driven decisions.

Benefits of a Stock Keeping Unit (SKU) system

Now that we know what Stock Keeping Unit is, it's time to discuss its benefits. Stock keeping unit systems provide many benefits to companies, including increased inventory accuracy, improved customer utility, and the ability to analyze sales data and market trends. These benefits lead to overall optimization of logistics operations and increased supply chain efficiency.

Inventory accuracy: SKU's allow to keep an updated inventory and avoid errors.
Improved customer utility: inventory management: with efficient inventory management, customer demands can be met in a timely manner.
Data analysis: SKUs allow you to analyze sales patterns and trends to optimize business strategies.

How to implement a Stock Keeping Unit (SKU) system?

Implementing an inventory warehousing system requires careful design and integration with other logistics and inventory management systems. In this section, we will look at how to create effective SKUs and assign them to products in a way that maximizes inventory management efficiency and accuracy.

SKU design: designing a unified SKU system requires consideration of factors such as category, attribute and specific business requirements to create a coding scheme that effectively identifies each product or variant to optimize inventory management.
SKU assignment: assigning a SKU to a product consists of applying a defined coding system to each inventory item according to SKU design rules to ensure clear and consistent identification at all levels of the supply chain.
Integration with systems: integration of the SKU system with other inventory management and logistics platforms, such as the TMS software and other enterprise resource planning (ERP) systems, is essential to achieve a smooth and accurate flow of information to increase operational efficiency.

How to use the SKU number in logistics?

SKU numbers are a powerful logistics tool that enables accurate inventory tracking, product replenishment management and detailed order tracking. This section focuses on how SKU numbers can be used effectively to improve the efficiency and accuracy of your logistics processes.

Inventory control: SKUs are used to keep an accurate record of the quantity of products in inventory.
Resupply: gli SKU consentono di prevedere quando i prodotti devono essere riforniti in base alle vendite e all'inventario corrente.
Order tracking: los SKU facilitan el seguimiento de pedidos desde su origen hasta su destino final.

Conclusion to what is Stock Keeping Unit

Proper SKU implementation provides several key benefits, including the ability to provide detailed analysis of product performance and sales trends. This valuable data enables companies to make informed strategic decisions, improve inventory planning and customize products to better meet customer needs.

In addition, a well-designed SKU system integrated into your supply chain can help reduce errors in inventory and order management, increasing customer satisfaction and business profitability. Tight product management helps to increase the efficiency of logistics processes and reduce the costs associated with inventory management.

Integrating a TMS (transportation management system) or route optimizer software with an SKU system can significantly improve logistics processes. Route optimizer software helps plan and manage product distribution more efficiently, while the TMS software helps track and coordinate deliveries more easily.

In conclusion, the use of SKUs in logistics is an essential practice for any company wishing to optimize operations, maintain inventory accuracy and improve the customer experience. By investing in a reliable SKU system tailored to the specific needs of their business, organizations can achieve higher levels of efficiency and productivity in their logistics operations.

Take your logistics to the next level

Discover how Hedyla's platform can help your company

Raquel Pérez

Communications & Marketing Responsible at Hedyla

Designing digital strategies. Innovating and adding value to communication.