UNIVERSITY UTARA MALAYSIA

A172 GROUP A BPMG3013 TRANSPORT PLANNING & POLICY

Assignment Title: Route transportation planning for optimizing risks in

industrial supply chain

Topics: How to optimize risk in route transportation

Group name: Minion

Lecturer: Dr. Kamal Imran bin Mohd Sharif

LIM YING SAN 237826

PUNITHA A/P PRABAGARAN 238036
NURUL ANISAH BT SUDIRMAN 240204
GOH XIN HUI 240213
NURUL IZZATUL AISHAH BT MOHD ZAIN 240315
LIEW PUI LING 240837
NURUL HUSNA BT. JAMSARI 241423
NOOR ALIAH BT JAHARI 241485
SITI SOLEHAN BINTI ZULKIFLI 241523
MOHD AMIN YUSRIE BIN YAHYA 248256

Submission date: 16. April. 2018

 According to the Economic Times (2018), transport planning can be simple mean
by the planning which is required and necessary in the operation, provision and
management of facilities and services for the modes of transport. With the well route of
transportation planning it not only help to reduce the risk in industrial supply chain but also
help to achieve safer, faster, comfortable, convenient, economical and environment-
friendly movement of people and goods from one location to another. As we get to know
that industrial supply chain area always facing the risk that may related with the planning
and control risks. This matter happening due to the inadequate route transport assessment
and planning which come from the problem of ineffective management Moreover, there
are also the existence of supply risks. This risks may contribute to the interruptions of the
flow of product, it can be the raw material or parts as long as within the supply chain.
Therefore, route transportation planning for optimizing the risks in industrial supply chain
is quite important part in order to make the delivering of good and services to be carry out
in more effective and efficiency way according to the route planning.

First and foremost, the option that we suggested to optimize the route transportation
planning for optimizing risks in industrial supply chain is with arrangement the process
and organization. Indeed, it is undeniable that optimization in the sector of advanced
technology leading to centralize the route transportation planning processes. As we know
that, the physical location of user that who uses the transportation are decentralized, but
when they are operating within a central system that which function as aligned centrally
agreed planning processes. Central system is within a software helps to define a clear route
transportation planning process. As for my understanding route transportation is about the
network of truck, buses and the modern Mass Rapid Transit (MRT) rail system. It the
public transport that may have the regular route that they need to pass through or go on.
Within the help of the software it helps to efficiently organize the significant data and
manage the quality of data, as well as define key performance indicators (KPIs) to inform
decision-making on quality. In practice only a few KPIs are really important, such as the
delivery service are on-time delivery, every cost spent on the operation are efficiency,
revenue or margin per truck of customer, and robustness of the plan (Adam Robinson,
2015).
 Not only that, the software may can be the app system it can be easy to download
from play store. It functions to show to the user that the route transportation is now on
which station, what time will arrive or delay, duration of each route and the situation each
type of route transportation may show the detail on the app. Due to this app the customer
and the logistics manage may easy to know the exactly destination of the cargo. Which
mean that, the flow of the inventory will process effective and smoothly. This mean that
the risk of the supply chain able to minimum or avoided (Iamian R. changelin, 2009).

(Source: Supply chain risk management, 2014)

Next, the phased implementation of this app is vital for smooth and effective
implementation of the optimize the processing of software. As we know that, sometimes
the situation route of the road may unpredictable such as flood, road accident and so on.
Such event may create the problem to the flow of the cargo. While with the help of this
app, the people who are in charged to shipping the goods may can perfectly prevent the
problem such as using another route to deliver the merchandise or using the other modes
to shipping the goods to the origin of destination of customer’s desired location. In addition,
the planner of the app can estimate the flowing of delivery the good with a limited number
of orders and trucks. This is because, it helps to keep the planner in control. Once they have
become more competent, planners can engage in internal competitions to create the optimal
plan using the software companies also have the option to publish efficiency KPIs
internally or externally on a regular basis.
 Apart from that, the development of IT landscape for optimization software can be
the one of the method in making the route transportation planning become more better in
the industrial supply chain. In this part, most of the ERP and TMS systems tend to be used
to acts as a supporting of a number of transport planning functions. It helps to support the
supply chains’ geocoding, time or distance calculations, a map and Gantt chart, plus
integration with Track & Trace systems. Besides that, the designated of the powerful
optimizers which are able to assign orders to routes or even routes to resources with more
complex decision-making rules will be available to a limit extent in order to assist the route
transport planning. Through this, the optimization of a large number of stops within a rule
are required through the adoption of “last mile” delivery option. Consequently, it allows to
the access to more detailed restrictions. For example, planned and real-time congestion,
vehicle type accessibility, driving time regulations and required capabilities. Hence, the
capable of an advanced optimization is vital in supply chain as it can be a tool in well
evaluating the multiple options and thus taking a large number of constraints into account
(Goos Kant, 2014).

On the other hand, there must also a WMS systems which will focus mainly on
managing the storage and picking process. Actually, WMS systems do not consider the
routing optimization and it basically is dynamic routing. Through this, we can say that most
WMS systems are function properly for storing the static routing patterns for distribution.
In case of minimize unnecessary risk in supply chain, it providing the necessary
information input from the orders in order for the purpose of carry out the routing
optimization. As a result, the routing optimization software will be connected to the WMS
system for the input of orders. Regarding the returns of output in order to start the picking
process in the warehouse will be carry out too in this system (Goos Kant, 2014).
 (Source: Supply chain risk management, 2014)

In short, a well manner management of route transport planning for optimizing the
risk in industrial supply chain is very important part for every logistics company to run
smoothly and predictable. With this, it enables the inbound and outbound logistics to be
process and carry on under the effective and efficiency way without obstacle and mistake.
Not only that, the distribution of product and services to the end user in accurate time and
location will brings to the higher customer satisfaction towards the logistics service that
they purchase. All of this success are come from the effective route transport planning.
REFERENCE

Kant. G. (2014). Advanced Planning & Optimization in Transportation: Supply Chain

24/7. Retrieved April 10, 2018, from
https://www.supplychain247.com/article/advanced_planning_optimization_in_tra
nsportation

Robinson. A. (2015, May 21). The Transportation Supply Chain's Role for a Shipper.
Retrieved April 10, 2018, from http://cerasis.com/2015/05/21/transportation-
supply-chain/

Times. E. (2018). Definition of Transport Planning: What is Transport Planning ?

Transport Planning Meaning. Retrieved April 10, 2018, from
https://economictimes.indiatimes.com/definition/transport-planning

Iamian. R. (n.d.). Supply Chain Risk Management: Literature Review and Future Research,
1-2. doi:10.3897/bdj.4.e7720.figure2f