| Schneider Logistics Inc. |
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| Green Bay, Wisconsin |
| Download (PDF, 360 KB) |
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- Reduces shipment costs by 25%
- Consolidates shipments
- Shortens delivery routes
- Improves on-time performance
- Scalable and robust
- Solves wide range of problems
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| "One of the things that challenges us is that different businesses have widely different sized problems. Using ILOG Dispatcher, our solution method is robust enough to handle problems varying greatly in scale." |
Ted Gifford
Director of Research
Schneider Logistics
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Business
Schneider Logistics Inc. is a leading provider of third-party logistics services. The company furnishes supply-chain management services to more than 250 companies and 8,500 carriers worldwide. Its systems arrange as many as 40,000 shipments a week, handling close to $6 billion in freight charges annually on behalf of clients.
Goal
One of the ways Schneider Logistics creates value is by reducing shipping costs, consolidating shipments and routing vehicles to reduce total mileage. Fewer trucks are needed, deliveries are more timely, and operating costs are greatly reduced.
Application
The industry-leading SUMIT© technology suite helps customers achieve savings of as much as 25%. SUMIT schedules shipments using an advanced application based on ILOG optimization for vehicle dispatching. ILOG Dispatcher powers one of the suite's main applications for consolidating shipments and routing deliveries. With Dispatcher, SUMIT improves delivery times and reduces transportation costs.
Results
ILOG optimization enables SUMIT to solve relatively small dynamic problems at unprecedented speeds. Typically shipment consolidation can save a company 5-25% over the direct cost of individual shipments. One Schneider Logistics customer has saved approximately $3,000 per business day.
ILOG optimization also makes SUMIT highly scalable and robust. One of the challenges facing logistics is the diversity of customers and wide-ranging problem sizes. Dispatcher broadens SUMIT’s scope, tackling the toughest problems.
Technical
ILOG Dispatcher fully models Schneider’s routing and consolidation problems, quickly capturing every constraint. Using the ILOG Solver constraint programming engine, Dispatcher applies specialized logistics algorithms.
These algorithms search for feasible solutions that combine shipments into efficient routings. Each route strives for the lowest costs and the fewest trucks possible, while still meeting all delivery dates. With 100 shipments and a maximum of 5 stops, potential solutions can exceed 79 million.
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