OMSAN LOJİSTİK

Transportation and Distribution

Transportation Planning Pyramid

Measures&

Goals

TransportInfrastructure

PROCESSES

TransportWorkforce

Netw

ork Design

Routing &

Scheduling

Shipm

ent Managem

ent

Fleet/Carrier

Managem

entFreight M

anagement

PLANNINGTRANSPORTATION

Page 4

T&D Key Performance Indicators

Indicator Acronym Definition

Perfect DocumentPercentage

PDP % of Documents with a Perfect Match toCorresponding Shipment

Damage Percentage DP % of Shipments Incurring Damage% Shipments withoutClaims

CFS CFS = Claims-Free Shipments

% Shipments Arriving OnTime

OTAP OTAP = On-Time Arrival Percentage

Perfect ShipmentPercentage

PSP PSP = PDP x DP x CFS x PSP

Loss-Sales Ratio LSR Value Lost in Shipping over Total SalesInsurance Claims per Year ICPYYear-to-Year InsurancePremium Variation

IPV

Page 5

T&D Design Principles

T&D KPIs Network Rationalization Consolidation & Pooling

– Inbound Consolidation Programs

– Backhauls

– On-the-Fly Consolidation

Strategic Use of Third Parties

Standard Container Sizes & Pools

Automated Shipment Planning– Mode Selection– Carrier Selection

Automated Routing & Scheduling

Shipment Tracking & Visibility

Carrier Measurement and Monitoring

Core Carrier Design

Page 6

Logistics Hierarchies

• Single-Level Designs: Central Distribution

• Two-Level Designs:Central & Regional Distribution

• Three-Level Designs:Central, Regional, & Local Distribution

Distribution Network Design Decisions

• Production Locations

• Sourcing

• Number of Warehouses

• Locations of Warehouses

• Type of Warehouses

• Distribution Territories

Page 8

Rational Network

Lowest Cost Network

Show Unsatisfied Demand for Product 05

Page 16

Shipment Planning

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%1,9

3,9

5,9

10,9

1,4

3,4

5,4

10,4

1,2

3,2

5,2

10,2

1,1

3,1

5,1

10,1

Shipping Policy (% by Air, Shipments per Month)

% o

f To

tal

Po

lic

y C

os

t

LICC

Admin

TFC

ICC

Page 17

Shipment Planning

15,00

17,00

19,00

21,00

23,00

25,00

27,00

29,00

31,00

33,00

$800.000

$850.000

$900.000

$950.000

$1.000.000

$1.050.000

$1.100.000

$1.150.000

$1.200.000

$1.250.000

$1.300.000

1,9 3,9 5,9 10,9 1,4 3,4 5,4 10,4 1,2 3,2 5,2 10,2 1,1 3,1 5,1 10,1

Da

ys

$s

Scenario (% Air, Frequency)

TPC

NLT

Mode Selection

PRICE

HIGH

LOW

LOW HIGH

LCL

OCEAN

TRUCKLOAD

LTL

AIR

FREIGHT

Speed & Reliability

Page 19

Value-Density Analysis

DensityValue Low HighLow Ocean Shipping

Commodities = Grains,Sugar, Coal, Produce

Furniture

Situation Dependent Printed Material

High Situation Dependent Apparel Shoes

Air Shipping Consumer Electronics Pharmaceuticals Cosmetics Jewelry

Page 20

Pooling & Consolidation

Pool

poolpoint shipment #1

shipment #2shipment #3

allowable ship dates

Page 21

Automated Routing & Scheduling

Page 31

Transportation Management Systems

TMS Function TMS Vendors

1. Vehicle Routing and Scheduling Planning Dispatch ARC

CAPS LogisticsRoadNetRoadShowBowne-DistinctCaliper TransCad

2. Supply Chain Management Design & Analysis Production Planning

Insight SAILSBender PhydiasCAPS Logistics

3. Shipment Planning Design & Analysis Operational Shipment Planning

Insight ShipConsIICAPS LogisticsCCA TransPlan 2000

4. Carrier Management Princeton SuperSpinSABREALK

5. GIS Transportation MapInfoESRI Arc/Info

Caliper TransCadCAPS Logistics

6. Customized TMS SABRECAPS LogisticsMercer

Source: Bill Nulty, Ph.D. “Shipment Planning” in Transportation and Distribution Short Course. TheLogistics Institute at Georgia Tech, 1996.

Edward H. Frazelle, Ph.D. Page 32

Reverse Logistics

• Recycling

• Returnable Containers

• Returns

• Dunnage

• Containers & Packaging

Page 33

3PL: If, When, and How

• If - there is strategic advantage to do so an a positive contribution to EVA.

• When - there are opportunities to take advantage of consolidation opportunities and/or specialization of work.

• How - partner relationship management.

Edward H. Frazelle, Ph.D. Page 34

High-Speed Shipping

Transportation Gap Analysis

Measures

Network Design

Routing & Scheduling

Inbound Transportation Management

Third PartiesFleet

Configuration

Vehicle Configuration

Container Design & Management

Vehicle Assignment

TMS

Organization

Load Planning0

1

2

3

4

5

CIMSA

World-Class

Transportation and distributiondecisions include the number,

location, and mission ofdistribution centers; strategicassignment of customers andsuppliers to DC’s; routing and

scheduling between facilities; fleetconfiguration; and mode and

carrier selection. Fortunately thereare advanced decision support tools

that recommend near-optimaltransportation and distribution

solutions. The near-optimalsolutions attempt to minimizetransportation and distributioncosts while achieving the pre-

defined customer service objectivesfor response time and fill-rate.

Transportation Case Example

U.S. Food Service

Food Service Profile

Strengths• Private fleet with 343 tractors and 517 trailers• Slow movers consolidated in single facility• Fixed routes• Backhauls designed into 20% of fixed routes• Managers evaluated on cases per truck, collisions, error rate• GFS controls 70% of inbound freight, carrier selection• Formal carrier evaluation & monitoring process• Dynamic routing system• On-board positioning and rerouting• Some inbound consolidation planning• 90% inbound trailer utilization

Transportation Management System Case Example

U.S. Chemicals

ACC Current TMS Assessment

Database

Data Integrity

Platforms

Integration

Response Time

Functionality

Maintainability

UserInterfaces

012345

Amoco

World-Class

Functionality Families

Functionality Families FunctionalityFreight Management Carrier Management, Carrier Monitoring, Rating, Rate

Maintenance, Freight Auditing, Claims, Usage Credits,Negotiation

Shipment Management Load Planning, Shipment Planning, Mode Selection, CarrierSelection, Routing, Scheduling, Shipment Tracking,Consolidation, Pooling, Backhauling,

Container Management Container Profiles, Container Tracking, Repair, Maintenance,Container Utilization

Decision Support &Executive InformationSystem

Asset Utilization, Costing, Shipment Profiling & Simulation,Mode Performance Analysis, Carrier Performance Analysis,Capacity Planning, Fleet Sizing, Container Yields, NetworkAnalysis

Transportation Objects

• Containers• Vehicles• Orders• Shipments• Carriers• Documents• Payments• Carriers

• Shippers• Consignees• ...

Mid-Term System Architecture

SAP R/3Order Entry

OrderHistroy

File

T&DData

Warehouse

T&DDecision Support

System

ContainerManagement

FreightManagement

ShipmentManagement

Long-Term Design Principles

• There is justification for an integrated TMS incorporating freight, container, and shipment management.

• SAP will not be the long-term solution provider. Current TMS vendors are moving too fast and have a higher commitment to transportation solutions. Logistics is not a SAP priority.

• SAP interface development = custom development in time and expense.

• Vendor developments are leading to consolidated applications functionality and industry solutions.

• The long-term solution design should be based on justifiable best, not current T&D practices and strategies.

TMS Package Alternatives

Functionality Families Package Alternatives

Freight Management DSI, CASS Logistics, TADMIS, Kostecki, ALLTRANS, SID,www.shipnet.com

Shipment Management DSI, SABRE, MANUGISTICS, NUMETRIX, ALK Associates,Dallas Systems, Kostecki, SID, ENCOMPASS, www.shipnet.com

Container Management ALLTRANS, SABRE, TIE Logistics, CADEC Systems, ICCInternational, SID, ENCOMPASS, www.shipnet.com

Decision Support &Executive InformationSystem

CAPS Logistics, INSIGHT

TMS Team Organization

Bob Theurer

ITTMS

Team Leader

T&DTMS

Team Leader

ITFreight Mgmt.

T&DFreight Mgmt.

ITContainer Mgmt.

T&DContainer Mgmt.

ITShipment Mgmt.

T&DShipment Mgmt.

ITDSS

T&DDSS

ProjectFOCUS

CommonProcesses

Facilitator

Executive sponsor from the user community.User-IT teams for each TMS functionality family (i.e. FM, CM, SM, DS).

IT Team Leader to be Project FOCUS liaison.T&D Team Leader to be Common Process liaison.

Subject matter expert facilitator to assist IT & T&D team leaders.

TMS Transaction Database & Data Warehouse Design

• Based on transportation objects (i.e. carriers, containers, orders, shipments, etc.)

• Relational and consistent with IT Standards (i.e. ORACLE, Sybase)

• Data Warehouse fields should parallel transaction database fields where possible

• Single-point data entry and on-line data integrity audits

TMS Strategic Decisions:Outsourcing, SAP, CDI, CDE, BOB• Vendor and package review to focus on large TMS providers, and

alternative links with Internet applications, outsource providers, and carrier/freight forwarder applications

• Evaluation of budget, time, risk, and benefits of each functionality development alternative (i.e. outsourcing, status quo waiting for SAP solution, internal custom development, external custom development, and best-of-breed package implementation)

• Custom development vendor candidates should have at least 50% of required functionality already developed and verifiable operating

• Strategic partnerships with outsource and/or custom development vendors

• Follow Amoco corporate guidelines for evaluating and selecting development direction

Page 48

Exercise

• Our biggest opportunity for improvement in transportation & distribution is:________________________________________________________________________________________________________________________________________________________________________________________________