Supply Chain Gang

1. Supply Chain Gang Rob Buchanan Greg Johnson Matt Tinius

2. Problem • Past Thought : • To optimize the transportation of freight in manageable containers. • To cube out product so that every inch of capacity was filled. • Shifting Views: • Concern has moved to truck operators • Driver hours of service have been shortened and probably will continue on the same path.

3. Issues Addressed • How do we help the driver? • Help him/her to be more productive • By reengineering equipment • By regional rerouting

4. Reengineering Equipment • Phase 1 Part 1: Trailer Floor • 2 trailer-length sets of rollers spanning a foot wide positioned 2 feet from either side of the trailer • Rollers should be able to be lowered just under the height of the trailer bed to prevent rolling of product • Sample truck bed shown below 53’ 8.5’ Ball-bearing Rollers

5. Reengineering Equipment (2) • Phase 1, Part 2: Box Bottoms • To aid in box sliding and manageable units • Thin metal plates squared to support a 4-box bottom Box1 KD1 KD2 KD3 KD4 • Phase 1, Part 3: Shrink-wrapped Cubes • KDs should be shrink-wrapped in manageable cubes (or rectangular prisms) with a 4-box bottom so that there are 2 or 3 cubes for the height of the truck • This will prevent slippage during loading and unloading • Cubes would be store or region-specific

6. Reengineering Equipment (3) • Advantages • Significant reduction in time spent loading/unloading • Less manual energy used by the driver • Labor costs lessened • Disadvantages • Considerable upfront capital costs • Training at factory and driver levels • Some bins may not allow width of shrink-wrapped cubes

7. Regional Rerouting

8. Regional Rerouting West of the 95th meridian, eliminate bins within a feasible distance of each other. In higher concentrated areas, eliminate bins within feasible mile radius of DC. Have regional managers first audit their areas to expel unnecessary bins, then set in place new criteria.

9. Decreasing Bins • Eliminate surplus of bins • Trade in some trucks for smaller, fuel-efficient trucks to deliver in closer proximity using a ray sweep approach

10. Regional Rerouting (2) • Eastern Region • High density of bin locations, manufacturing facilities, and DCs • Western Region • Low density of bin locations, manufacturing facilities, and DCs • Proposition: • Tractor-trailers move product in low density regions from DC to direct sale • Smaller delivery trucks move product in higher density regions while larger trailers deliver to further destinations, foregoing the need for bins in close proximity to the DCs • Eliminate bins within close proximity of DC

11. Recommendation • First have regional managers audit the necessity of their bin locations and concentration • Find most cost-effective outside company to reengineer the trailer floors • Begin implementing equipment reengineering and standardized bin spacing (both in the Western region due to its lower density) to work through any initial issues in a more controllable environment • Move East as process allows

12. Supply Chain Gang Contact: • robbuchanan@my.unt.edu • matthewtinius@my.unt.edu • greg.1j@gmail.com