cindi hane “show me the time management money”
TRANSCRIPT
![Page 1: Cindi Hane “Show Me the Time Management Money”](https://reader034.vdocument.in/reader034/viewer/2022042701/55ce7b95bb61eb29498b46b4/html5/thumbnails/1.jpg)
Show Me the Time Management Money
Logistics Management
Breakout – inSIGHT 2013
Presented by Cindi Hane
![Page 2: Cindi Hane “Show Me the Time Management Money”](https://reader034.vdocument.in/reader034/viewer/2022042701/55ce7b95bb61eb29498b46b4/html5/thumbnails/2.jpg)
Elemica’s SmartLink Platform
![Page 3: Cindi Hane “Show Me the Time Management Money”](https://reader034.vdocument.in/reader034/viewer/2022042701/55ce7b95bb61eb29498b46b4/html5/thumbnails/3.jpg)
Elemica’s Logistics Management Suite
Road Transport Execution Ocean Transport Execution Time Slot Booking & Optimization Terminal and Warehouse Visibility Freight Invoice Management
![Page 4: Cindi Hane “Show Me the Time Management Money”](https://reader034.vdocument.in/reader034/viewer/2022042701/55ce7b95bb61eb29498b46b4/html5/thumbnails/4.jpg)
Logistics Value
$200-$275 Automation & Collaboration Savings Shipments & Freight Invoices
Lower Labor costs Reduced data entry, paper handling Better POD visibility Reduced time fixing errors Lower freight audit effort
Lower Freight Costs Improved carrier negotiations Reduced detention charges Fewer premium, cancellation charges Better control over assessorials
Improved Cash-to-Cash Cycle Faster POD information Better terms with carriers Better inbound control Real-time visibility to LSP activities
$2027 Cost/Shipment Before Elemica
$1789 Cost/Shipment After Elemica
$25 to $35
$31 to $43
$144 to $197
![Page 5: Cindi Hane “Show Me the Time Management Money”](https://reader034.vdocument.in/reader034/viewer/2022042701/55ce7b95bb61eb29498b46b4/html5/thumbnails/5.jpg)
Agenda
• The Need for Time Slot Management • The Elemica Solution • Quantifying the Value
![Page 6: Cindi Hane “Show Me the Time Management Money”](https://reader034.vdocument.in/reader034/viewer/2022042701/55ce7b95bb61eb29498b46b4/html5/thumbnails/6.jpg)
6
What is Time Slot Management?
Shipment Booking Appointment Planning Appointment Execution
Loading Day Shipment Booking or Notification
Planning Horizon (Release Time)
Modify Appt
Create Appt Modify
Appt
Loading Loading Complete
Weigh-Out
Arrived
Weigh-In
In-Transit Modify Appt
ASN
Accept Shipment
Tender Shipment
![Page 7: Cindi Hane “Show Me the Time Management Money”](https://reader034.vdocument.in/reader034/viewer/2022042701/55ce7b95bb61eb29498b46b4/html5/thumbnails/7.jpg)
Time Slot Management: “The Burning Platform”
Business Need • Detention is the largest unplanned expense in transportation • The threat of a driver shortage is real • Wait time is non-value-added (waste) and increases uncertainty
Business Value • Large opportunity to reduce detention charges • Eliminate uncertainty on inbound loads -> decrease working capital • Reduces variability of delivery performance • Smoother arrival schedules means optimized site labor
Feasibility • Time Slot Management is one of the most impactful solutions and the most
feasible to implement
![Page 8: Cindi Hane “Show Me the Time Management Money”](https://reader034.vdocument.in/reader034/viewer/2022042701/55ce7b95bb61eb29498b46b4/html5/thumbnails/8.jpg)
Superior SCM Delivers Value Across the Organization
Improvement Area Range
Delivery performance 16% - 28%
Inventory Cost Reduction 25% - 60%
Reduction in order fulfillment cycle time 30% - 50%
Improvement to forecast accuracy 25% - 80%
Increase in overall productivity 10% - 16%
Lower supply chain costs 25% - 50%
Improvement of fill rates 20% - 30%
Improved capacity realization 10% - 20%
Source: Stephens Comparative Study Pittsburg, USA
![Page 9: Cindi Hane “Show Me the Time Management Money”](https://reader034.vdocument.in/reader034/viewer/2022042701/55ce7b95bb61eb29498b46b4/html5/thumbnails/9.jpg)
Average (Un)Load Times
Source: “How to reduce time spent by drivers on site and improve their treatment: Recommendations for loading and unloading sites”, ISSUE 1 DECEMBER 2009, ECTA, Responsible Care, CEFLC
• Based on Data from 47 sites in different countries, involving 20,000 loading or unloading operations
• Assume ~60 minutes to load a full truck
• Rough estimates for wait times:
• Liquid – 2 hrs • Dry – 1 hour • Packg – 2 hrs
2-to
4
hour
s
2-to
3.5
ho
urs
1.3 to 2 hours
![Page 10: Cindi Hane “Show Me the Time Management Money”](https://reader034.vdocument.in/reader034/viewer/2022042701/55ce7b95bb61eb29498b46b4/html5/thumbnails/10.jpg)
(The Myth of) Driver Shortages
Shortage calculations based on dubious math
Made for lobbying against HOS regulations
There is a shortage of pay There is very high turnover
Experience levels decreasing Drivers usually don’t get
paid for detention
Bottom line: Time Slot Management benefits the drivers – enhances your carrier relationships
![Page 11: Cindi Hane “Show Me the Time Management Money”](https://reader034.vdocument.in/reader034/viewer/2022042701/55ce7b95bb61eb29498b46b4/html5/thumbnails/11.jpg)
Reduce Uncertainty
Inbound
• Enforcing unloading appointment
times with your suppliers’ carriers
provides visibility to schedules
• Use the OR/ASN to start process
• Provides even more value for VMI
• Can modify slots to align with
production schedule JIT
• Lowers working capital
Outbound
• Enforcing loading appointment
times with carriers improves delivery
estimates to your customers
• Use the LTM to start the process
• Increases efficiency of load
operators
• Lowers detention charges
![Page 12: Cindi Hane “Show Me the Time Management Money”](https://reader034.vdocument.in/reader034/viewer/2022042701/55ce7b95bb61eb29498b46b4/html5/thumbnails/12.jpg)
Optimize Site Resources
Peak Arrivals Before TSM
Peak Arrivals After TSM
15% reduction in Site Labor Costs
Source: Analysis based on Elemica data
![Page 13: Cindi Hane “Show Me the Time Management Money”](https://reader034.vdocument.in/reader034/viewer/2022042701/55ce7b95bb61eb29498b46b4/html5/thumbnails/13.jpg)
Agenda
• The Need for Time Slot Management • The Elemica Solution • Quantifying the Value
![Page 14: Cindi Hane “Show Me the Time Management Money”](https://reader034.vdocument.in/reader034/viewer/2022042701/55ce7b95bb61eb29498b46b4/html5/thumbnails/14.jpg)
14
Elemica Time Slot Management
• Collaborative Platform for Shipper and
Carrier
• Obeys constraints for locations, times,
resources, blocked times
• Security of data in carrier view
• Allows create, move, delete
Appointment Planning • Tracks shipment statuses
• Applies visual cues on
calendar
• Provides carrier performance
reporting
Appointment Execution
Loading Day Shipment Booking or Notification
Planning Horizon (Release Time) Frozen to Carrier
Modify Appt
Create Appt Modify
Appt
Loading Loading Complete
Weigh-Out
Arrived
Weigh-In
In-Transit Modify Appt
ASN
Accept Shipment
Tender Shipment
![Page 15: Cindi Hane “Show Me the Time Management Money”](https://reader034.vdocument.in/reader034/viewer/2022042701/55ce7b95bb61eb29498b46b4/html5/thumbnails/15.jpg)
Time Slot Management: Booking Appointments
17
The solution is integrated with Road Transport Execution. Navigate to the applicalbe stop to determine Slot Options
The solution shows only feasible times on feasible load points For Optimization, also feasible wrt resources User books the slot.
![Page 16: Cindi Hane “Show Me the Time Management Money”](https://reader034.vdocument.in/reader034/viewer/2022042701/55ce7b95bb61eb29498b46b4/html5/thumbnails/16.jpg)
The view is defined by the role: Shipper or Carrier The Shipper has more capabiliites for creating, deleting, moving appointments The Shipper can manage blocked times, reservations, product outages
Time Slot Management: Booking Appointments
![Page 17: Cindi Hane “Show Me the Time Management Money”](https://reader034.vdocument.in/reader034/viewer/2022042701/55ce7b95bb61eb29498b46b4/html5/thumbnails/17.jpg)
The Calendar View provides visual cues for actual loading status: • Orange = InTransit • Blue = Weigh in • Green = Loading
User can enter statuses manually from this screen
Time Slot Management: Managing Appointments
![Page 18: Cindi Hane “Show Me the Time Management Money”](https://reader034.vdocument.in/reader034/viewer/2022042701/55ce7b95bb61eb29498b46b4/html5/thumbnails/18.jpg)
Agenda
• The Need for Time Slot Management • The Elemica Solution • Quantifying the Value
![Page 19: Cindi Hane “Show Me the Time Management Money”](https://reader034.vdocument.in/reader034/viewer/2022042701/55ce7b95bb61eb29498b46b4/html5/thumbnails/19.jpg)
Potential Benefits
Assumes an average transport journey time of 8 hours per shipment
Source: “How to reduce time spent by drivers on site and improve their treatment: Recommendations for loading and unloading sites”, ISSUE 1 DECEMBER 2009, ECTA, Responsible Care, CEFLC
If all sites reduce the time spent on site by 20%, it is estimated that total freight costs could be reduced by 8%
If all sites limit the time spent on site to 2 ½ hours, it is estimated that freight costs could be reduced by 8.5%
If the time spent by a truck driver at (un)loading sites is reduced from 4 hours per (un)loading operation to 1 hour, the number of shipments handled per year by one truck driver doubles.
![Page 20: Cindi Hane “Show Me the Time Management Money”](https://reader034.vdocument.in/reader034/viewer/2022042701/55ce7b95bb61eb29498b46b4/html5/thumbnails/20.jpg)
Quantifying the Value: Reduced Detention Charges
• 90,000 shipments per year • Average detention costs
for shipments with detention = $170
• % Shipments that incur detention BEFORE TSM = 20%
• % Shipments that incur detention AFTER TSM = 5%
Assumptions:
• Detention Charges before solution = $3,060,000
• Detention Charges after solution = $765,000
• Savings = $2,295,000 • Savings per shipment = $25.50 • This works out to ~3% reduction
in overall transportation costs • Compared to 8% reduction
cited in previous reference
Calculations
![Page 21: Cindi Hane “Show Me the Time Management Money”](https://reader034.vdocument.in/reader034/viewer/2022042701/55ce7b95bb61eb29498b46b4/html5/thumbnails/21.jpg)
Other Factors
• Better capabilities to plan on-site
resources • Reduction in peak labor by
spreading work-load throughout the day
Labor Productivity
• Outbound: Reduction in shipment lead time and variability reduces DSO
• Inbound: Reduction in inbound lead time and variability reduces inventory levels.
Cash-to-Cash Cycle
![Page 22: Cindi Hane “Show Me the Time Management Money”](https://reader034.vdocument.in/reader034/viewer/2022042701/55ce7b95bb61eb29498b46b4/html5/thumbnails/22.jpg)
“recent challenges in carrier capacity (and) demands for faster and more-consistent
shipment turnaround (drive) more enterprises to evaluate this technology.
..Pressures to reduce costs and increase productivity have kept interest in (time
slot) scheduling.” Dock Scheduling and Carrier Appointment Management Dwight Klappich, The Gartner Group, November 2010
Time Slot Management
• Reduces wait times & detention • Reduces administrative time • Turns equipment more quickly • Improves carrier relations • Optimizes facility resources and
improves throughput • Eliminates uncertainty
Improving Time Slot Management:
![Page 23: Cindi Hane “Show Me the Time Management Money”](https://reader034.vdocument.in/reader034/viewer/2022042701/55ce7b95bb61eb29498b46b4/html5/thumbnails/23.jpg)
Logistics Value
$200-$275 Automation & Collaboration Savings Shipments & Freight Invoices
Lower Labor costs Reduced data entry, paper handling Better POD visibility Reduced time fixing errors Lower freight audit effort
Lower Freight Costs Improved carrier negotiations Reduced detention charges Fewer premium, cancellation charges Better control over assessorials
Improved Cash-to-Cash Cycle Faster POD information Better terms with carriers Better inbound control Real-time visibility to LSP activities
$2027 Cost/Shipment Before Elemica
$1789 Cost/Shipment After Elemica
$25 to $35
$31 to $43
$144 to $197
![Page 24: Cindi Hane “Show Me the Time Management Money”](https://reader034.vdocument.in/reader034/viewer/2022042701/55ce7b95bb61eb29498b46b4/html5/thumbnails/24.jpg)
Elemica Time Slot Management