This article was published in Edition 74 of Port Technology in 2017.
From the quay through the yard and onto trucks or rail, Agile Optimization Modules deliver value across the terminal. With both a strong short and long-term ROI possible, the benefits can be translated into financial terms that have real impact on the bottom line. "Power up your TOS" from Edition 73 outlines these benefits and potential ROI in detail and is a good precursor to this article. Building from where that article left off, this article will explore the most common question we heard over the past years: when is the best time to implement an Agile Optimization solution?
WHEN DO YOU POWER UP YOUR TOS?
The short answer is quite simple: anytime is a good time because the benefits begin to drive return from the day you go-live. But, the long answer is more structured: given that implementing optimization modules tends to be seen as a capital expenditure (CAPEX) project – albeit with some ongoing expenses (OPEX) –three ideal scenarios align with traditional CAPEX projects where an Agile Optimization solution will deliver immediate impact and a strong ROI:
- Shrink to Grow - equipment replacement projects.
- Expand in Efficiency - brownfield expansion projects.
- Reduce to the Max - greenfield design projects.
While each project type is discussed in greater detail below, the general principle is that a small CAPEX investment in Optimization Modules will pay dividends in the form of both immediate CAPEX project savings as well as through long-term reductions in OPEX costs.
SHRINK TO GROW
Aging handling equipment fleets are an ongoing concern for operations. As equipment ages, maintenance related OPEX rises. On the flip side, new equipment is an expensive CAPEX project that needs to be carefully considered. Traditionally the solution is to replace aging equipment with more equipment – a like-for-like approach. However, this isn’t the only option available to terminal operators today.
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