According to the Korea Transport Institute, Korea’s logistics costs as a percentage of GDP were 9.74 percent, relatively higher than the U.S. and Japan. Transport costs accounted for 67.74 percent of its total logistics costs, followed by storage costs (23.6 percent), data management costs (3.9 percent), packaging costs (2.3 percent) and loading & unloading costs (2.3 percent). As the data shows, because transport cost is the largest component of logistics costs, transport cost reduction is the key to companies’ logistics competitiveness.
In order to maximize one’s transportation cost reduction, it’s important to increase cargo loading efficiency. In many cases, cargo loading is heavily dependent on workers’ years of experiences and knowhow.
However, with this way of working, you can’t really figure out if your loading work is productive and efficient enough. In addition, if you load different types and numbers of items, it creates even greater inefficiency. To solve this issue, it’s essential to adopt load optimization solution that suggests the most efficient way of cargo loading and ensures a quick loading operation. The solution helps with not just shipping cost reduction but cargo damage prevention too by increasing load stability. It also helps reduce load operation time through quick simulations.
This white paper takes a look the key functions and features of Cello Loading Optimizer and how it has been upgraded and actually being used in warehouse operations for logistics cost reduction.
2. Cello L/O -Functions
Cello Loading Optimizer has three optimization modules—Box, Pallet, and Container. Each module is available independently. Also, it provides a 3-step simulation showing how boxes will be loaded onto pallets and then into containers.
Box Optimization Module, also called Carton Optimization, calculates the optimal number and type of boxes needed to deliver a customer’s order. It’s particularly used in e-Commerce warehouses to ensure that they use the least number and size of boxes, considering an array of factors such as load constraints, weight limits per box, load orientation, etc.
Pallet Optimization Module calculates the least number of pallets needed and shows how to load them in the most stable way. Unlike box and container loading, load stability is critical in pallet loading as boxes are stacked in layers with no ceiling on top, not in a pyramid shape. In addition, in order to prevent boxes from tipping over or sliding, Pallet Optimization Module helps lay boxes in rotated layers. It’s frequently used when transporting shipments from large warehouses like a CDC to RDC . Container Optimization Module helps determine how many vehicles and what type of vehicles would be ideal to transport your shipments.
Plus, Full Pallet Optimizer has been added recently to suggest different loading patterns in cases when a pallet is going to be stacked with a single type of products. Workers can run simulations before loading, pick one out of different patterns, and designate the pattern for future loading operations by product/pallet. Different patterns—G4, sandwich, layer, etc.—are created by taking into account the size of the pallet (e.g. width, length, margin), any constraints in terms of product rotation, and labels. Also, it uses different colors for packages with different load directions and shows the number of patterns to ensure greater convenience.
Container Optimization Module ensures the center of gravity to be located as close as possible to the center. Moreover, it ensures that freight is stacked starting from the inside wall of a container. When you need to choose between two options of one large vehicle and two smaller ones to accommodate the same volume of shipments, it helps you decide which option is better based on volume and cost analysis.
3. Cello L/O – Features & Benefits
In addition to general functions you can find in other loading optimization solutions, Cello Loading Optimizer provides four distinctive features and benefits.
First, by applying the recent heuristic algorithm , Cello Loading Optimizer creates loading scenarios by considering not only load efficiency but load stability too. For load stability, it makes sure that the center of gravity of your loads is placed at the lowest, thus minimizing product damage during transport. Using the high execution speed of the engine, it also enables users to conduct simulations in real time.
Second, with 3D visualization enabled by WebGL , Cello Loading Optimizer provides enhanced user experience. Users can rotate and check loading scenarios from all angles and see the details of each item by clicking on it. They can also edit the scenarios in detail by using the drag-and-drop and store each result. By displaying the scenarios in 3D graphics, it helps workers easily understand how to load. It also enables them to print work orders and see step-by-step work sequences on the monitor.
Third, Cello Loading Optimizer offers greater convenience in running a simulation by letting users to apply an array of loading rules. For instance, you can ensure labels (barcodes) to be seen from the outside, keep same orders closer together and load shipments according to the order of stop-offs. Plus, even when there is no size and weight information of an item, you can quickly run loading optimization simulation, using the image processing algorithms of the 3D scanner developed by Samsung SDS.
Fourth, the All-View of Cello Loading Optimizer displays all scenarios on the monitor and these scenarios can be rotated 360 degrees so that you can analyze the whole scenarios conveniently and effectively. In addition, by enabling you to re-run simulations, it helps you choose the most optimized scenario. The final scenario will be the one with the highest score but you can choose other options as it displays alternatives and their scores too. Scores are calculated based on the weighted score factors described in the right side of Figure 7 (see below). Here you can always adjust the weights according to your needs.
4. Use Cases..
To find out more about Cello Loading Optimizer of Samsung SDS, visit Cellologistics.com and download the whitepaper.