i2 u intelligent supply chain management course module thirteen: transportation scheduling
TRANSCRIPT
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i2 U
Intelligent Supply Chain Management Course
Module Thirteen:Module Thirteen:Transportation SchedulingTransportation Scheduling
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2© 2001 i2 Technologies Inc CONFIDENTIAL
Supply Chain Management Key Processes
Sales & Operations Planning
Demand Planning
Inventory Planning
Supplier Scheduling
Production Scheduling
Inventory Deployment
Transportation Scheduling
Demand Fulfillment
Supply Chain Execution Monitoring
Strategic Supply Chain
Planning
Master Supply Planning
Procurement
Production Distribution
Transportation
Impact of decisions
_
+N
umbe
r of d
ecis
ions
+
_
Spec
ifici
ties
by in
dust
ries Length of Planning horizon
Fu
lly
Inte
gra
ted
to
p-d
ow
n d
irec
tio
ns
Fu
lly
Inte
gra
ted
bo
tto
m-u
p f
eed
bac
k
Reaction to changing supply conditions
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After Completing This Module,You are Expected to:
Define the key objectives of the Transportation Scheduling process
Understand the typical limitations of the Transportation Scheduling process
Understand the optimization logic embedded in solvers used to optimize the Transportation Scheduling process
Understand the “Dynamic Merge in Transit” process and its criticality to support eBusiness activities
Identify Transportation Scheduling key enablers and their resulting business value
Identify Transportation Scheduling excellence criteria
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Transportation Scheduling Process Positioning
hou
rs
days
wee
ks
mon
ths
year
+
buy
make
move
sell
store
operational tactical strategicscheduling
demandfulfillment
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Transportation Scheduling Objectives
Substitute estimated transportation lead times with ‘up-to-the-minute’ lead times for a fully valid transportation plan
Minimize transportation costs by building optimal loads and selecting adequate transportation means
Transmission of detailed transportation plans to carriers
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Typical Limitations in Transportation Scheduling
SUPPLIERS
PLANT
DCs
CUSTOMERS VMICUSTOMER
Incoming goods purchased CIF - no
search of combination with
internal and outbound
transportation
Fragmented transportation
scheduling
Empirical “optimization”
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Transportation Scheduling Optimization
SUPPLIERS
PLANT
DCs
CUSTOMERS VMICUSTOMER
Considering… Carrier
selection Mode selection Hub selection Routing Backhauling Deadheads
Minimization of total
transportation cost by
increasing transportation
space utilization and reducing total mileage
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Strategies Total cost % red. Total mileage Duration
Typical set o
f stra
tegies that a
solver uses
to minim
ize tr
ansportatio
n costs
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Loads generated by the solve
Detailed shipments by loads
Output of a Transportation Scheduling Solver: Consolidated Loads
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Output of a Transportation Scheduling Solver: Graphical Visualization of Selected Lanes
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Load Physical Configuration for Maximum Transportation Space Utilization
Product CasesPallets
Trucks and Trains
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Transportation Scheduling:Key Enablers and Related Business Benefits
Global and accurate consideration of transportation needs
Blend of LP / MILP solvers
Full integration with other Supply Chain Management processes
Transportation costs
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Business Environments Where Detailed Transportation Scheduling is Critical
High volumes
Small shipment sizes
Use of 3rd party carriers
As well-suited for management by manufacturers (shippers) as it is by Third Party Logistics (3PL) providers
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An Increasingly Critical Capability in the e-Business World: Dynamic Merge in Transit
A customer orders through the PC company web
storefront several products supplied from different locations and actually
different suppliers (cross selling)
1
Company web
server
PC manufacturer
Printer manufacturer (same company, other
division)
Office furniture manufacturer (ext supplier)
The order is automatically
dispatched to all supply sources
2
Suppliers provide their
promises back3
Consolidation of incoming flows at a location dynamically selected to minimize transportation costs
4
Customer
Unique delivery to
the customer5
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Transportation Scheduling ProcessExcellence Criteria
The use of an adequate optimization solver enables to minimize transportation costs by consolidating shipments into loads that minimize the total mileage and the usage of transportation space.
The solver considers ALL transportation needs.
The solver uses real carriers rates and routes, and considers all detailed transportation constraints.
The solver dynamically selects cross docking locations and activities.
The solver enables dynamic merge-in-transit to ensure one single delivery to the customer while minimizing transportation costs.
The sequence of optimization strategies is regularly fine tuned by performing what if analysis.