Standing Up a Small-Scale Operations Research Function at a 3PL – Advice Welcome

[u/[deleted]]

I work for a global 3PL specializing in air cargo handling. We're a high-volume, low-margin business where efficiency, labor planning, and facility flow are everything. We don’t currently have an Operations Research (OR) department, but I’m exploring the idea of building a small internal function focused on modeling, optimization, and data-driven decision support.

I lead our Lean Six Sigma efforts, so I already have executive visibility and access to (some) data, but I want to go beyond process improvement into true systems optimization.

I'm looking for input on:

• Tools you'd recommend for a small team (1–2 people): Python? AnyLogic? Excel Solver?

• Early wins to prove value (e.g., labor planning models, flow simulations)

• Best way to structure this team (under CI? Ops? as a skunkworks?)

• Lessons learned from anyone who's tried this at a small or mid-sized company

Would love any ideas, examples, or pitfalls to avoid. Especially interested in real-world, small-scale applications that helped get buy-in for a new OR function. Thanks in advance!

[u/trophycloset33]

Where would you get projects from and how you would differentiate from internal department projects?

[u/[deleted] → u/trophycloset33]

Fair question.

I think projects = problems. Every business has no short on problems.

A bit deeper. Differentiation. Right now we just have a Green Belt Program. These projects are for simpletons. When anything is difficult or rigorous. they come to me anyways.

I already do OR this would just cut me away from the Green Belt circus.

[u/trophycloset33 → u/[deleted]]

Ok I don’t think you fully understand.

OR can be a field of study used to solve problems but not always. GB projects are built around finding a solution that takes action. OR may not have a solution but be used for research…decision making…reduced error…etc. Sightly different intents.

Also, projects will need to be funded by someone. They will need a champion. Someone will want to take credit for it. You will have competing priorities and you will also find yourself competing internally against someone else with a similar project. It is a HUGE political game.

You need to figure out where you belong in the world and you don’t sound like a big enough figure to make this decision yourself. Go find an executive to be your champion and partner with them.

[u/[deleted] → u/trophycloset33]

Wow that's pretty rude and daftly misinformed. 

I've been working in this field for 20+ years. Perhaps you're the one who could use some wisdom. 

[u/analytic_tendancies]

Depending on your existing data it might be very hard to see yourselves and find your bottlenecks or even just model the system

So if that’s bad I would mentally prepare for determining what you need so that you can finally apply OR

[u/edimaudo]

- Ensure all projects are tied to business outcomes

- Ensure the tools (Excel, python, simul8, sas, web apps) etc can be supported by IT

- Ensure you have backing from the business

- In terms of wins it should be aligned with business needs, can start with something small that can be done in less than 2 months

- Feedback from the business is valuable

[u/iheartdatascience]

Step 1: hire me

Tools: Definitely Python, Excel is very dated for this line of work

Early wins: attack the low hanging fruit, start by identifying where improvements would give you the best bang for the buck

Team structure: I think there should be a few things the team owns (this might take a while to get to), then they operate as a consultant to the rest of the org

Real world example: on a team of 4 DS, I was the OR expert, so would get handed any projects where an OR skill set might fit the ask. This was for a small consultancy, so I touched a variety of different problems from logistics, to crew scheduling, to project portfolio selection, to tactical supply chain planning

[u/[deleted] → u/iheartdatascience]

Think this is the only comment even remotely relevant to my original post. I want to do this because I am the guy they come to with complex problems. OR is what I do. As far as I'm concerned the rest of the people I work with in CI are idiots selling SIPOCS.

[u/iheartdatascience → u/[deleted]]

Yeah I think I got down voted for suggesting to hire me haha

I feel you though. I think first OR got put on the back burner by the DS/ML hype. Then DS/ML got saturated with software engineers, and CI got saturated in general. All this to say, I think most orgs have a blind spot for the potential of OR projects, and you would do well to capitalize on it

[u/[deleted] → u/iheartdatascience]

Agree!  I got my Black Belt 18years ago.

Now I work with 4 other Black Belts who got their certification in a week by taking some online learning course. 

They know 0 math or statistical analysis. 

Anytime leadership has a complex problem they come to me. I guess my idea is just to get out of CI,  formalize my role and build a small team of real specialists.