Skip to main content

A Lost Art?

 


I had an interesting experience the other night that level me surprised and questioning some assumptions.

I saw an article on LinkedIn that was written to support route optimization and highlight differences between different types of final mile (last mile) deliveries.

As I went through it, I couldn't help but feel like it was a little off. Not that the information was wrong per se, more that the frame didn't quite capture all of the nuances I felt it should (I appreciate I am a touch opinionated - I prefer to call it passion).


It dawned on me later that evening, a question that might explain why I was feeling off after reading the article. In an on demand world, that is based on dynamic orders and routing, is knowledge being lost that supported the previous "traditional" models.


The major difference I am making between dynamic and traditional models is that traditional models are/were built on fixed and planned service schedules. This could be five deliveries per week, one, or something like once a month. The frequency itself isn't the focus, it's the fact that it is scheduled, fixed and repeating.

Today's eCommerce driven world is dynamic. People are making orders all the time, deliveries are based on the number of days from order to fulfilment versus a fixed schedule (i.e. Amazon's 2 day shipping).

In both environments, you get all types of data about your activity. At the most basic level, all of the same variables apply and impact in the same way. The differentiator is that in a dynamic model you never know exactly what you will have to delivery, how much or where.

Dynamic routing today is supported with a multitude of software suites. All the orders that come in will move through the system, they are dispatch and optimized by the algorithm. You find out how many runs/routes you need, this would then translate to hours, number of drivers, helpers, etc.

Since everything moves so fast, I challenge that something is lost in the overall approach to the business.


One of the most irritating things I deal with on a regular basis is someone who thinks that logistics is anything more than managing time and capacity. No matter if you are delivering widgets, food or items from that new direct to consumer retailer, it's all the same at the base. People that have only lived in the eCommerce space will tell you that it's special, different, you have to gain experience doing it in order to optimize and win.

Aboslutely. False.

Anyone who says that is showing how little they truly understand about operations, execution and the fundamentals of network design.


For those of us that that have grown up and experienced more traditional models, I find that we consider more. We have worked with systems that repeated, that gave us a regular and consistent sandbox to play in. This is like a pure opportunity of the scientific method. Same (or very similar variables), over and over again and you get to tweak inputs and see the results.

From this experience, I suggest that this type of experience makes you more effective when dealing with new types of delivery elements because you have a breadth and wealth of knowledge from proven experimentation that you can use to improve results.


You obviously have to grow, change and adapt. I am not suggesting that how we approach dynamic routing today doesn't make sense, it does. I do believe pairing modern day options with core fundamental understanding developed from experimentation yields more than simply relying on the software to give you the 'best' solutions.





Comments

Popular posts from this blog

The Black Swan

  Maybe I think differently because I have read this? With everything going on with the CoronaVirus, it is incredible to see how people are behaving. Everyone and their cousin is talking about the Supply Chain, about being prepared, about not having enough capacity ... it's crazy. I honestly wonder if the people making all of these comments have ever actually ran any operations, if they ever had to responsibility to actually get things done. It's easy to say how prepared you can be, and what companies should have been doing, or pointing the finger saying "how could you be out of stock". The reality is, we have a lot of choice. The average grocery store for example can easily have 15,000 to 20, 000 skus that move through their stores ... think about that for a minute. That many skus, that are all cycling through the stores on some type of regular rate of sale.  Or let's take something that's more in people's face at the mo...

Give your best stuff away

    This is an interesting and sometimes polarizing topic. One group of people believe that the more content (ideas, conversations, posts, videos, etc) that you put out into the world, the better your return is as you are connecting with more people and getting greater exposure. Another group feels that by investing all of this energy into giving away "free stuff", takes away from what you could be doing to grow your business, give to your clients or to your employer. That giving your stuff away doesn't pay the bills, so what's really the point other than feeling good. For me personally, I'm all about giving my best stuff away for free, and what follows are really my "whys". First and foremost, I don't really prescribe to the idea that anyone really has "best stuff". That's finite and fixed and I truly don't believe this applies to people the way it can be associated to things. If you are a miner, and you m...

How to Avoid the 'Quick Fix' Lure of Technology That's Stifling Your Creativity

  We live in a world that is obsessed with solving problems with a system or technology. How many times have you hear someone [basically] say "let's get an app for that"? Crazy. I'm all for shiny new things. I love my toys as much as you do.  Rarely however does that new systems, application or software suite fix any of the underlying issues. When was the last time you started using something new, either in your personal or professional life, and it immediately fixed your problem and you changed nothing about what you are doing. Often, what ends up happening, is that as businesses look to implement some new tech, they also end up having to change HOW they are doing things. The changes that are made to core processes is what drives the success. Using your phone to track your steps, your sleep, your workout or to even help you write. Pause for a second, think about any of those situations.  Tracking your steps and setting daily goals means that you are actually walking ...