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Lean Transportation TRANSPORTATION – Strategy 2004 Asset Management Transportation Assessment Fleet Analysis (as-is) Capacity Analysis Cost Per Mile Optimal Asset Analysis (to-be) Optimal Asset Requirements Breakeven Analysis Benchmarking Balance utilization with optimal performance

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Presentation Transcript
slide2

TRANSPORTATION – Strategy 2004

  • Asset Management
    • Transportation Assessment
    • Fleet Analysis (as-is)
      • Capacity Analysis
      • Cost Per Mile
    • Optimal Asset Analysis (to-be)
      • Optimal Asset Requirements
      • Breakeven Analysis
      • Benchmarking
    • Balance utilization with optimal performance
      • Solution and recommendation
      • Savings
  • Software Development
    • Routing & Cubing Software
    • Lit Survey for Algorithms
    • Web based framework
    • Software Development
    • Documentation
    • Simulation
    • Implementation
slide6

TRANSPORTATION – Fleet Analysis

Results

  • Rightsizing the fleet
    • Reduced the fleet size by 17 pieces of equipment (4 tractors, 5 straight trucks, and 8 trailers) by the end of the year.
  • Repositioning of equipment for effective utilization
    • Repositioned 5 pieces of equipment and 10 additional pieces of equipment (5 tractor and 5 straight trucks) are under review for repositioning by the end of the year.
slide7

TRANSPORTATION – Routing

  • Routing - Finding an optimal delivery routefor each truck to make the best and most efficient use of the vehicle assets
  • Current Status
    • Developed a web based application (Route+)
    • Order assignment to trucks can be done by dispatcher manually or auto-allocation
    • Routing sequence is performed by routing heuristic
    • Constraints considered:
      • Weight
      • Time window
      • Waiting time
      • Max truck hours
    • To be implemented in all branches
slide8

TRANSPORTATION – Cubing

  • Cubing - To determine the optimal arrangement of products in a given truck
  • Current Status
    • A rough-cut solution which recommends a cubing layout for four major items
    • Pipes, gates, chain links, wood
    • Data available for 40% of SKUs
      • Pipes – 60%, Gates – 53%, Chain links – 29%, Wood – 28%
slide13

TRANSPORTATION – Routing & Cubing Application

Results

  • Fleet utilization - implying - reduction in External Transpotation usage
  • Reduced delivery cost per order by reducing miles and increasing volume utilization
  • Reduction in outside part-time labor and driver overtime
  • High visibility over cost and capacity parameters
  • Greater control on fleet management
slide14

TRANSPORTATION – Routing & Cubing Application

  • Benefits
    • Decreased Activity Level at Branches for Scheduling Purposes
      • Estimate: ½ Man Year Per Branch
      • Increased Customer Service or Decreased Inventory Needs Due to Proper Loading
      • Decreased Transportation Costs
  • Estimated Savings - $1 Million Annually
logistics direction
Improve fleet utilization

Cubing / Weight / Routing / Hours of Use

Effectively manage a reduced carrier base

Niche and regional carriers

Gain control of inbound materials

Provide information to make better decisions

Reduce overall costs to move product & effectively utilize inventory

Logistics Direction