THE FIRST POLISH NATIONWIDE STUDY OF TRANSPORT PEAKS
The problem of monthly peaks in road transport of goods affects nearly every production company, increasing its logistics costs by an average of 5-15% per year. Although 50% of companies with positive effects have taken actions to reduce the peaks, the average scale of peaks in companies that generate large volumes of goods transported is still of 202% – according to the study performed in the framework of the project Peaks cost.
A growing number of shipments in the last 4-5 days of the month are usually artificially generated peaks due to common motivational systems in companies settled at the end of each month. The volume increases by an average of 202%, affecting the higher logistics costs (5-15% per year), the lost sales (according to 61% of respondents) and the quality of the service, including delays, errors and omissions or damage. Interestingly, only 10% of the peaks is the result of a periodic increase in consumption.
Besides quantified consequences of transport peaks, the respondents also observe such negative effects as: disorganization of work and chaos caused by unpredictability of the peaks, the notorious lack of achievement of the objectives of performance, increased levels of stress and staff turnover.
The fact that 86% of the Managements is ready to support the logistics department in solving the problem of traffic peaks fills with optimism. What's more, up to 91% of companies declare that it took the fight with the peaks, of which 50% achieved results.
More data from the study can be found in the infographic.
- Although the fact that there are transport peaks is not new, never before a closer examination of this phenomenon was attempted. Meanwhile, its scale and prevalence are surprising – in comparison with other European countries we are quite a sensation. The study itself is only the beginning. Now, knowing what we face, we are able to develop a catalog of good practices and strive to reduce transport peaks. Therefore, as a part of the project Peaks cost coordinated by us, we organize workshops with logisticians and chiefs of sales departments, on which we discuss current ways applied by the companies to reduce transport peaks and we look for other effective ideas to deal with this problem. As a result, we give the participants arguments for further discussions in their own organizations. We try that the participants of the worshops represent various departmenst in the companies, because the problem of the peaks affects the entire organization and, contrary to the popular belief, does not end with the logistics department. The more individuals and companies will engage in a discussion, the results will be more satisfying – said Klaudia Szymańska, project coordinator of Peaks cost of ROHLIG SUUS Logistics.
The study was conducted as part of the think tank project Peaks cost in June 2014, based on 22 individual survey interviews conducted with managers of logistics and supply chains in Polish and international companies that generate high volumes of goods transported in domestic transport (several or tens of thousands of pallets per month). The respondents represented such branches as: FMCG, electronics, home appliances, construction (including construction chemicals, fittings, interior furnishings).