Expertise - Innovation - Integrity

Network Optimization

Due to the multitude of available options, designing a network is complex.
By aggregating each trade independently, the end result is likely to be sub-optimal.

As liner shipping networks are very expensive to change once implemented, the network must be optimized up-front, at the strategic level, before the network is set and the flow can be optmized. Linear programming can quickly determine the most optimal set of volumes & revenues matching the network having the lowest cost.

A strategic planning simulation model should provides transparency of various scenarios, providing answers to strategic questions such as:

  • How should I deploy my assets to deliver overall volumes/revenues at the lowest cost?
  • What is the cost, utilization and service delivery impact of adding a new port, rotation, trade?
  • What is the ripple effect on other trades?
  • What is the most optimal fleet for the long term budget?

The network optimization tool will selects the optimal network which maximize utilisation of profitable volumes at the lowest possible cost. It calculate the costs, the utilisation and optimal flow for the entire network at once, taking into account ripple effects between trades, to avoid the sub optimal partial view occurring when decisions are taken for each string independently. Subject all the various costs data are available, the system can be set to optimize profits.

Taking into account empty repositioning costs, Intermodal, foreign feeders and VSA, an highly parameterise able tool (variables, costs and constraints are editable by user) provide quick answers to all strategic planning questions to test multiple scenarios and provide unlimited what if analysis via iterative man machine partnership.

Once the network is fixed, the tool can be used to assist planning by optimizing the flow of cargo to cater for short term localised volumes surges and avoid bottleneck, while continiously minimising the semi fixed and variable costs across the entire network.

If you wish to learn more check our presentations on the insight section or contact us.