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Lean Transportation

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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Lean Transportation

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  1. Lean Transportation

  2. 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

  3. TRANSPORTATION – Fleet Analysis 2003 Cost Per Mile

  4. TRANSPORTATION – Fleet Analysis

  5. TRANSPORTATION – Fleet Analysis

  6. 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.

  7. 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

  8. 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%

  9. TRANSPORTATION – Routing & Cubing Application

  10. TRANSPORTATION – Routing & Cubing Application

  11. TRANSPORTATION – Routing & Cubing Application

  12. TRANSPORTATION – Routing & Cubing Application

  13. 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

  14. 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

  15. 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

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