What do speed, intuition, emotion, experience, slowness, rational thinking, and conscious action have in common?
They are elements that come together when a person wants to make a good plan with the help of a system. However, there is one big catch: these elements can sometimes be contradictory. How can a logistics company benefit from combining these elements with a useful planning system that supports it?
Transition in logistics: from intuition to efficiency Scientists regularly uncover contradictions, something Nobel laureate Daniel Kahneman also addresses in his book Thinking, Fast and Slow. From More Optimal’s perspective, we see a connection to the logistics world, where good planning is essential. In the logistics sector, a transition is taking place from intuition to efficiency. This transition cannot happen without bridging the gap between economics and psychology, just as Kahneman suggests.
Human thinking consists of two systems What Kahneman concludes in his research is that people rarely act fully rational, which many economists tend to assume. At More Optimal, we can only conclude that this is also true for planners. Kahneman describes human thinking as consisting of two systems:
- System I: Fast, intuitive, emotional, and subconscious.
- System II: Slow, rational, and conscious.
Humans have a preference for intuitive and easy The human brain naturally prefers System I because it requires less energy. Anyone who wants to use System II must make an effort to engage in rational thinking and keep it within reach.
Rationality is crucial for good planning When making a good plan, System II is necessary. A planner must objectively and systematically decide which options are best within a complex system. Relying on experience and intuition (System I) may lead to a plan, but is it the optimal one? Most planners are, after all, human, and it’s simply not feasible to keep System II active all day.
How More Optimal helps The More Optimal platform takes over a large part of the System II activities. This gives the planner space to focus on strategic and creative thinking. The platform helps answer questions like:
- Which order of stops results in fewer kilometers: A-B-C or A-C-B?
- Can an employee take on an extra shift without violating labor laws?
- If I move this task from machine X to machine Y, what is the impact on my total production costs for the day?
Worry less, work on creative solutions When an application calculates all the consequences for each decision, planners worry less about breaking rules or negatively impacting KPIs. This gives planners the opportunity to fully focus on generating creative and innovative solutions. They can even try them out immediately, as there’s little to no risk of unforeseen consequences.
From Kahneman’s insights to planners adding value What Kahneman’s theories make clear is that people don’t always make the best decisions by nature. This is especially true in a complex and dynamic context where planning and scheduling are at the core. By deploying technology that compensates for these cognitive pitfalls, we enable more consistent and better planning. More Optimal empowers planners to add value where it truly matters: in strategic thinking and finding innovative solutions.
Bridging the gap between intuitive decisions and data-driven optimization Planning tasks and resources is more than just a sum of rules and requirements. Entrepreneurs who want to succeed must constantly make trade-offs. By harnessing the power of System II, More Optimal can help bridge the gap between intuitive decisions and data-driven optimization.
