19 October 2022

Boosting efficiency in network distribution with smart execution management

In the last mile, smart execution management is already widely used by retailers and carriers. With a logistics Control Tower that allows smart execution management, they can work together and keep grip on their transport operations towards shops and consumers. Within network distribution—the transport between producers and retailers—smart execution management is less established, even though that is precisely where major benefits can be achieved.

How do you give shippers insight into truck arrival times (ETA’s) when your network partners all use their own TMS? How do you monitor the progress of transport orders if they are placed with different charters? How do you respond quickly to urgent requests if you have no idea where in your network capacity is still available? These are just a few of the challenges for which a smart execution management platform can be of great value.

The focus on Last Mile logistics – But what about network distribution?

In recent years, there’s been a lot of focus on last-mile transport management. As an e-commerce company, how can you offer your customers an optimal home delivery service? How can retailers stock their shops more efficiently and sustainably?

Over the years, Simacan has developed a number of excellent tools for this, which many retailers and transport companies are already using to their logistical advantage. With our smart execution management platform, they can cooperate efficiently, and the progress of trips is transparent to all stakeholders. Consumers, DCs, and shops can see exactly when a shipment will arrive, and transporters can anticipate traffic conditions in real-time. Just to name a few of those benefits.

Addressing the lack of transparency in network logistics

There is less focus on the distribution phase before the last mile, i.e., transport from the supplier to the retailer, but interesting developments can be spotted here. This part is also known as network logistics. Network logistics is about all parties working together to meet the objectives of each stakeholder in the network.

In network logistics, carriers do not carry out standard trips between DCs and fixed locations (as in retail delivery) but instead drive for multiple customers, trying to combine different loading and unloading orders as efficiently as possible within a single trip.

For example, a driver might:

Pick up two pallets from producer A in the morning.
Collect four pallets from wholesaler B.
Deliver two pallets to retailer C.
Pick up more goods from producer D.
Deliver three pallets to retailer E.
Store remaining goods at a DC for later transport.

In short, a very different process from the classic ‘milk run’, where the same route is repeated daily.

Challenges of multi-carrier transport networks

The growing complexity of subcontractor management

One of the biggest challenges in network distribution is the multi-carrier structure, where different logistics partners work together. They do this to:

Manage fluctuations in demand.
Share transport capacity efficiently.
Optimize the use of their drivers and fleet.

Many regional transport companies work together with partners in other regions to offer a comprehensive distribution network. Large logistics providers manage subcontractors or freelance drivers, while smaller carriers exchange orders among themselves.

This has major implications for operational management, as transport companies increasingly take on a 4PL role, managing not just their own fleet but also a mix of external trucks and drivers.

How smart execution management improves communication across logistics networks

Clearly, such a complex transport network requires:

Advanced planning and coordination.
Efficient allocation of transport orders to both internal and external fleets.
Real-time tracking to ensure on-time deliveries.

If a truck is unexpectedly delayed somewhere in the network, customers should be informed in real time, and a new Estimated Time of Arrival (ETA) should be provided. The consequences for the rest of the schedule should be immediately visible, allowing for quick adjustments.

However, achieving full network transparency remains a challenge, as:

Not all carriers use the same TMS.
There is no shared visibility across multiple transport providers.
Many subcontractors lack on-board computers, making real-time tracking difficult.

If something goes wrong, the recipient of the goods is often the first to notice, which is not the ideal way to manage transport disruptions. This is where smart execution management makes a difference.

Consignment visibility: A game-changer in network distribution

Increasingly, we see that logistic platforms with smart execution management capabilities, like Simacan – already useful in many retail operations – can also be very suitable for network distribution.

Overviews at shipment level are available, which allows carriers to monitor and adjust the transport orders (consignments) of different customers in one overview, in real-time. Carriers can also share these views with their customers. Now manufacturers can see exactly when an order will be loaded at a factory. And staff at distribution locations know exactly when goods are unloaded at their premises. They can not only see it, they can act; they can adjust time slots – within certain limits – and chat directly with the carrier or shipper.

Key benefits of smart execution management for network distribution

1. Improved customer experience for shippers

Shippers benefit from:

Enhanced delivery performance.
Fewer disruptions and fewer customer complaints.
More visibility for the receiving party, allowing them to plan unloading operations efficiently.

2. Increased efficiency for carriers

For logistics service providers, smart execution management is a strategic tool that helps:

Improve competitive positioning.
Reduce empty miles by dynamically allocating transport resources.
Optimize fleet utilization using real-time transport visibility.

With Simacan’s Transport Asset Status, planners can quickly identify available vehicles, track delays, and dynamically adjust scheduling.

3. Easier integration in mergers and acquisitions

A hidden advantage of smart execution management is its ability to simplify integration during mergers and acquisitions.

Many transport companies operate on different, outdated TMS platforms.
Integrating two different fleets can be time-consuming and costly.
With smart execution management, transport operations can be merged within days instead of months.

This enables logistics companies to scale and grow efficiently without technology integration bottlenecks.

Conclusion: The future of network distribution lies in platforms with smart execution management capabilities

The principles of smart execution management offer immense value for network logistics. But who should take the lead in adopting this technology? In the ‘last mile’, i.e. in parcel delivery and shop replenishment, we see retailers taking the lead and persuading their carriers. Within network logistics, however, we see carriers are more likely to take the initiative. After all, it allows them to improve their proposition and thus their partnerships with their shippers.

At Simacan, we are already working with major transport companies to bring smart execution management to network logistics. If you want to enhance your supply chain visibility and transport efficiency, contact us today to explore how we can help you take the next step in logistics innovation.

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Tagged control tower, network distribution, real-time visibility, smart execution management, supply chain optimization, transport steering