Supply Chain–Wide Optimization at TNT Express

Abstract

The application of operations research (OR) at TNT Express during the past seven years has significantly improved decision-making quality and resulted in cost savings of 207 million euros. The global optimization (GO) program initiative has led to the development of a suite of optimization solutions to assist the operating units of TNT Express to improve their package delivery in road and air networks. To create and deploy these solutions, we established communities of practice (CoPs), at which internal and external subject matter experts meet three times annually at an internal conference. We also created a unique two-year learning environment, the GO academy, where employees of TNT Express are taught the principles, use, and deployment of optimization techniques. As a result of these combined initiatives, OR is now an effective part of the core values at TNT Express.

Motor Carrier Service Network Design

“…More recently, Meuffels et al (2009) addressed a ground transportation consolidation problem for the express package industry using similar network design ideas. This work was conducted for TNT Express, and it is part of a larger group of operations research projects described in Fleuren et al (2013). In the paper, relatively small tactical express networks are considered for consolidation optimization using flat networks.…”

The resilience of logistics network against node failures

“…In the real world, a logistics network for the express delivery is responsible for transferring and distributing packages between a set of origin and destination nodes through several intermediate facilities, which essentially rely on public transportation networks, such as land and air. The express delivery company must ensure that its network is robust, agile, and can effectively absorb demand fluctuations (Fleuren et al, 2013), which improves customer experience (Cui et al, 2020).…”