Identifying opportunities of co-loading by means of simulation

Abstract

This paper discusses bundling of freight activities at the operational level. Shippers attain scale economies and a better utilization of transport equipment through consolidation of freight inside a loading unit. This may on the one hand reduce the costs of pre- and end-haulage by road or on the other hand increase the attractiveness of intermodal freight transport for further continental distribution. A discrete event simulation model is developed to investigate possible benefits of consolidation in a real-life situation in which three shippers each operate a distribution centre (DC) in the neighbourhood of an intermodal terminal in Western Europe. The organization of a crossdock to consolidate freight of multiple shippers may lead to a reduction in throughput time of loading units. Second, simulation results show that capacity gains can be realized through a shift to non peak periods. The third performance measure to evaluate the consolidation scenario is the fill rate of loading units. The consolidation scenario leads to an increase in the average fill rate over all load orders in all three DC's. Finally, the consolidation scenario leads to a reduction in number of loading units necessary over the observed period.