Analysis and improvement of freight transport using software [621539]

Analysis and improvement of freight transport using software
products
M Ință1, M Bădescu1 and C Purcar1
1 “Lucian Blaga” University of Sibiu, Engineering Faculty, 4, Emil Cioran Street,
Sibiu, 550025, Romania

E-mail: [anonimizat]
Abstract : The purpose of the paper is to provide certain solutions to improve freight
operations within a company. Nowadays, information technology occupies an important place
and computer programs facilitate work in all areas of activity.
With the help of these to ols that record important data related to the company's activity and
operations management clearly and concisely, the company's management easily obtains
answers to essential questions.
1.Introd uction
According to Philip Kotler, logistics involves the plan ning, implementation and control of the physical
flow of materials, finished products, information between the point of origin and the point of
consumption, in order to meet customer needs and obtain an appropriate profit. In a modern
conception, logistics considers not only the flow of goods from the producer to the customer, but also
the flow of products from suppliers to producers [1].
Logistics involves, in fact, the management of the entire supply chain, built from the flows that
contribute to the for mation and addition of value by the participants in this chain. Under these
conditions, the logistics activity involves the administration of the entire physical distribution system
of the marketing channel, respectively the activity of suppliers, supply a gents, market operators,
channel members and customers. These activities include forecasting, procurement, production plans,
order recording, inventory management, warehousing and transport organization, all of which are in
fact components of logistics [2-3].
The efficiency of logistics implies the correlation of the three categories of activities carried out
(supply, production support and transport), activities carried out both within the company and at the
interface with the sequences downstream and ups tream, within the distribution and purchassing
channels. The integration of the three categories of logistics activities is possible through information
flows over the supply chain.
At present, the importance and role of logistics, considered as a supply chain, is growing, due to at
least four considerations [2-3]:
1. First of all, distribution is a key element in serving customers, in meeting their increasingly
demanding requirements. Thus, efficient logistics focuses on attracting and retaining
customers.

2. Secondly, logistics is a cost element in the activity of any company. Efficient logistics
requires improving the efficiency of the distribution system, so as to visibly reduce costs, with
positive implications for both the company and custome rs.
3. Thirdly, developments in the field of information technology have a decisive influence on
logistics, helping to improve its processes.
4. Fourthly, the increase of the variety of products, of their assortment range imposed the need
to improve the lo gistics activity.
Some of the main objectives of logistics are: to ensure the planned level of services at the lowest cost,
to reduce the time and space distances between the supply and demand of goods and to reduce the
costs of storage and distribution [4].
Since the 1960s, a paradigm shift has appeared in managerial thinking, the promoters of which have
been the engineers from Toyota plants, respectively from producing as much as possible to produce
only as much as needed [4 -5]. This new organizational pe rspective concerns the quality i n terms of
operational activity and process es.

2.The importance of transport in the SCM
It can be said that transport is the "blood" of an economy through which the "oxygen" it needs to exist
is transported. Transport is one of the major components of the logistics system, due to its contribution
to the fulfillment of the logistics mission. The main decision -making issues addressed relate to the
evaluation and selection of carriers, transport scheduling and ro ute setting.
Thus, it can be said that transport is defined as the physical movement of pe rsons and goods
between two points [6]. Logistics services include a range of various activities. Of these, transport has
a significant share both in terms of prese nce and especially in terms of costs. The company's options
for transport are numerous, but different in implications: to have their own means of transport, to rent,
to use specialized companies, to choose a certain mode of transport. All this must be anal yzed in a
specific context and no template solutions can be given in advance [7].
Transport can be defined as the activity by which goods are moved over different distances
between different points. The main modes of transport are: road, sea, rail, air an d pipeline. Of these,
road transport is a flexible mode of transport in terms of route and period of operation. The goods can
be delivered directly to the customers' premises or to a place designated by them. Its disadvantages of
road transport include the fact that restrictions on customs controls (for international transport) can be
time consuming. Also, long distances and the need to make water crossings reduce the attractiveness
for road transport. In addition, in some parts of the world, especially in underdeveloped countries, road
infrastructure is poor.
The limited perspective on space travel will lead to the choice of the carrier company that applies
the lowest transport tariff. However, the user is interested in getting the desired services, in addi tion to
the spatial movement at the best price. The user is interested in a transport company that will bring the
goods safely and in terms of the contract. Each transport service user will select the service or
combination of services that provides the mo st convenient quality -to-cost ratio. The selection of
transport services is based on the cost and performance characteristics of the transport modes.
The most important features considered by specialists are the following [7-8, 11-13]:
• Costs – depending on the mode of transport there are differences in costs. According to studies
conducted on the US market, road transport is on average 7 times more expensive than rail,
and rail is about 4 times more expensive than water or pipeline, while air transport cost s twice
as much as the road.
• Transit time / Speed – is one of the most important features for users of transport services.
Transit time is the average time required to reach the goods from origin to destination. This
aspect is all the more relevant as t he movement of goods involves the use of several modes of
transport. A long transit time has as a direct effect a high level of costs with basic and safety
stocks, to ensure business continuity.

• Consistency – refers to the ability of a mode of transport to maintain the duration of transit
over time. Transit time variation is a measure of uncertainty about the performance of
transport modes. A high degree of consistency means a potentially low variation in tr ansit
time.
• Availability – this characteristic refers to the ability of the mode of transport to move goods
between any pair of points, consisting of a point of origin and a point of destination. Of all the
means of transport, the road is characterized by the highest availability. The means of
transport can move the goods directly from the source to the destination.
• Flexibility – reflects the ability of a mode of transport to meet the special requirements of users
of transport services
• Frequency – indicates the number of scheduled deliveries in a certain time interval
• Safety – is one of the most important features of modes of transport. It refers to the ability to
maintain the quality of products during transit and to avoid the loss and deterioration of
products. A low degree of safety leads to increased costs. The main categories of costs they
generate are the following: cost of lost goods, cost of replacement or repair of damaged
products, cost of stopping the production process, due to lack of raw material s, materials,
necessary components, cost of sales lost due to unavailability of products, administrative costs
regulating the situation between the transport service user and the transport company, the cost
of the necessary safety stocks, the cost of insur ance.

3.Transport in global and local vision
Global business changes have forced many organizations to use strategic management, and one of the
processes is, of course, transportation management. In order to survive in business and do business
successfull y, an organization must find a way to provide value -added products or services that
differentiate it from the competition [6, 11].
One of the solutions that can meet the transport companies is the rapid development of information
technology that allows th e realization of the business strategy by improving the processes within it.
Transport problems are part of every economy, especially if we followe the importance of the market
in the modern economy [12]. Currently, there are numerous software packages that solve minor
theoretical transport problems and highlight the advantages of computer -processed data in transport
management.
Because transport connects production and consumption, transport taxes are a significant part of the
price. The transport load is a special case of general load related to linear programming. Currently, this
IT field belongs to operational research and has developed rapidly recently .

4.Analysis of freight transport within the company Transauto S .R.L.
4.1. Company presentation
Transauto SRL is a medium -sized company, with 72 employees, of which 26 drivers, 10 TESA
employees, 1 manager, 1 unskilled worker and owns 30 cars for transporting goods and people. The
company has the main activity of freight transpo rt but also provides passenger transport services.
Within the company, the freight forwarding activity is performed according t o the following
flow chart (figure 1):

Figure 1. Flow chart of Transauto shipping business

Thus, the delivery order is received by Transauto staff 2 -3 days before the shipment of the goods,
either by mail or fax and includes information on the type of goods, length, width, weight and height
of the goods and the place, the date and time from which the goods must be picked up. An important
aspect is the exact date of delivery of the products to the final beneficiary, the delays meaning

penalties for Transauto in terms of exist ing contracts. After receiving the order, the optimal route in
terms of costs and distance is established so that the goods reach the consignee in a timely manner.
The main countries of destination of the products are: Czech Republic, Germany, Belgium and France;
Transauto sends about 5 cars a week to these destinations (figure 2 ).

Figure 2. Map of the main destinations Transauto
4.2. Problems in freight transport
Following the analysis, several problems were identified in the transport of goods. A problem
identified in the transport of goods is the delay in the delivery of products to the customer.
This problem has its cause in the deficient supply of raw materials but also in various unforeseen
events such as: technical problems, calamitie s, long waiting in customs queues, etc.; thus, the supply is
not made on time and the production department cannot finish the products on time. However, over
75% of delivery orders are honored on time.
Another problem identified is related to the impossib ility of loading the parts in the truck due to
some defective lifting installations.
In order to find a solution for solving the problems, a problem evaluation matrix was created to focus
on the most important ones and on solving them.
The following crite ria have been identified for the elaboration of the problem evaluation matrix:
• chronicity – the project must correct a problem that occurs frequently, not a recent one;
• duration – projects must have a duration of less than one year;
• urgency – the project i s urgent if it addresses issues that make the organization vulnerable in
relation to the external environment;
• possible resistance to change – we choose the project that will probably meet the lowest
resistance;
• the problem must be measurable – the project does not start if the necessary data is not .
For the evaluation of the problems, scores will be given on a scale from 1 to 5 (table no. 2) where:
• 1 – unimportant problem;
• 5 – very important problem
The selection criteria are weighted according to importance available [14-15].

Table 1. Problem evaluation matrix
Identifyed
Problems Cronicity
30 % Duration
20 % Urgency
30 % Possible
resistance
to change
10 % The
problem
must be
measurable
10 % Total
Failure to meet the deadlines for
delivery of products to customers 2 2 5 1 3 13
Transport costs too high 5 4 5 5 5 24
Truck load issues 2 2 3 3 3 13
The supplied products do not
Lack of communication between
departments 3 2 1 1 1 8

Following the completion of the evaluation matrix, it was concluded that the most serious problem is
related to transport costs.
4.3. Implementation of Soft Transport software
In order to solve the problems identified after consulting with the company's staff, the aim was to find
an optimal solution to improve the current situation. It was concluded that the problems that can be
solved can be solved by implementing an innovative software product. After conducting a market
study on the software products used by the transport companies, we chose to test the Soft -Transport
software, specially designed for freight companies and which includes many elements to help
management make the best decisions [16].
This application is intended for carriers that manage as main resources of their activ ity trucks,
trailers and drivers. The program greatly facilitates the activity of dispatching. This software has been
tested for 1 month within the company, observing over time the advantages of use. Soft -transport
software (fig. 4) includes several sections that allow the development of a database with valuable
information for management.

Figure 4. Sections of Soft Transport

The main advantages of testing are:
• The Current Trucks Situation Section found the answers to the following questions:
o What is the number of trucks working for a particular customer?
o What is the situation of the truck with the number …?
o What is the city / country where the goods are to be unloaded?
• The Unlocked Turnkey Resour ces section was able to find out as soon as possible how many
trucks are out of order.

Figure 5. Soft Transport Sequence – Resources without command

• The exact record of the available trucks was kept (fig. 6) and it was possible to find out in the
shortest time if other orders can be honored, besides the already planned ones (fig. 7).
This tool has played an important role in meeting delivery deadlines to customers.

Figure 6. Truck situation

Figure 7. Truck Calendar
• Problems encountered during transport are also monitored in a special Problems section (fig.
8). For example, the nature of the technical problem can be recorded – the tires, kilometers,
etc., the observations related to the problem, but also if an order has been placed for a certain
truck part.

Figure 8. Soft Transport Sequence – Problems
• Or,the situation of the documents (fig. 9) handed over can be followed in the section with the
same name. Documents can also be uploaded here. This section also answers the questions:
when and to whom were the transport documents handed over to the customer and what non –
delivered documents are on board a truck.

Figure 9. Document situation

So, testing the software application brought many advantages to Transauto, namely (table no. 3:
• Strengthened control within the company;
• The problems in carrying out the transport activity were reduced by 20%;
• An 8% reduction in operating costs was observed;
• Documents and human resources have been managed more efficien tly;
• Rigorous advance planning is also one of the control elements that helps to meet delivery
deadlines to the customer.
After the acquisition and implementation of the software product within the Transauto company, an
improvement of the entire transport activity is observed. (fig. 10).

Figure 10. Comparative analysis in testing and after implementation

Even if testing Soft -Transport software has proven to be very useful, it could be improved or
supplemented with other sections that bring even better control within the company. The directions
that management should focus on after purchasing the Soft -Transport package are the following:
• Defining optimal routes for racing ;
• Applications to help optimally arrange products in the truck .

5. Conclu sions
In conclusion, logistics services comprise a range of diverse activities. Of these, transport has a
significant share both in terms of presence and especially in terms of costs. Global business changes
have forced many organizations to use strategic managemen t, and one of the processes is, of course,
transportation management. In order to survive in business and do business successfully, an
organization must find a way to provide value -added products or services that differentiate it from the
competition.
One of the solutions that can meet the transport companies is the rapid development of information
technology that allows the realization of the business strategy by improving the processes within it.
Within Transauto SRL, the implementation of IT applications, namely Soft Transport, solved the
problems encountered: non -compliance with product delivery deadlines, problems related to truck
loads, poor communication within the company and cost reduction through efficient management of
truck supplies and rigorous or ganization of space in trucks.

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