ramco apo case studies highlighting dispatcher -mcl

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Ramco APO Case Study MCL Dispatcher Solution Multi Objective Model: Time & Cost Optimization

www.ramco.com | Copyright 2014, Ramco Systems

Overall Business Objective & Need for Optimal

Solution

Ensure higher customer satisfaction by improved time delivery, faster service

Sustain dealer relationships by easy to use WEB & mobile order placement

Faster credit clearance with dealer through automated processes

Better control on logistics costs, thus better pricing and market position

Enhance the sales & distribution process by automated business functions like

Order allocation

Automatic Inventory replenishment

Truck allocation

Real Time Monitoring & Tracking of Trucks

Monitoring the order execution

Dispatch advises

Packer sequencing and truck loading


Goal Improve Market Share & Better Realization (currently good , still more) Objective Faster Customer Service, Optimized Logistics Cost, Optimized Truck Loading, Optimal Stock & Real time Truck Execution (Level 1 @ supply Point, Level 2 GPS) Strategy Within India wherever / whenever Dealer Orders are booked across India , it has to be delivered within 24 hours. As soon Order is booked & authorized then within 5 minutes an optimal order dispatch plan has to be suggested by our system Major Tasks Selection of Optimal supply within the capacity & operational constraints Within 12 hours of order booked, physical truck allocation should have done at Supply point (Multi Agent) LOGISTICS cost Calculation (freight, any secondary activity cost) other than product cost Automated Replenishment of Stocks @ Sales Depot / Hubs based on Reorder level / Projections Sequencing of trucks at loading stations Dynamic Rescheduling due to truck non availability @ supply point

Major Tasks, Objectives & Strategy


Cost optimized distribution logistics with minimization of logistics costs including

Primary logistics cost

Secondary logistics cost

Material handling costs

Production costs

Additional costs for special boundaries

300+ distribution locations across India

10 Production Plants

184 Sales depots

52 Transshipment Points

59 Rake stations

900+ delivery areas

200,000+ Delivery Routes across India

50,000+ movements & deliveries / months

Average fleet of 1,400+ trucks executed per day

Global view on inventory management in each node

Problem Complexity - Defined


RAMCO

Logistics Optimization Ramco APO Model

6

MCL - ERP

Item Quantity Delivery Address Due Date

Cost

Freight

Time

SALES PROFITABILITY

Optimal Freight Selection

Truck Scheduling Rake Despatch

Optimal warehouse selection Maximizing Material Realization Optimal material handling cost Finite Capacity Placement

Shortest Route On time Delivery Visibility of delivery

time Sale Order

Creation Pack Slip

Generation Factory/Sales

Depot Invoice Generation

Logistics Cost

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Plant/Packing Plant /Grinding Unit

Material Type

Monthly Production Volume

Lower and Upper bounds of Stock

Available Stock

Work Calendar

Shutdown events

Plant Constraints

Cost to delivery Area

Sales Depot

Monthly Demand

Lower and Upper bounds of Stock

Opening Stock at Month start

Work Calendar

Shutdown events

Depot Constraints


Cost from plant

Transshipment/Work Calendar

Work Calendar

Depot Constraints


Cost from plant

Ramco APO Model Resource Objects

Freight

Freight Type

Capacity

Supply Point, Delivery Area

Cost per tone



9 9

Sales Depot

Sales Depot 3

Plant warehouse

Customer

grade, quantity Due Date

Material request

Order quantity

Shipment Start Date

Order Delivery Plan

Delivery Date Shipment Location Delivery Location Truck type

Order Price

Rake Plan

Truck type

Cost

Stock Level

Calendar

Distance

Warehouse Status

Time

Rake


APO Solution - Architecture


MCL-APO PROCESS FLOW

12


Selected constraints handled through policy configuration & parameterization

Allocation based on minimum costs

Allocation based on minimum delivery time

Maximum dispatch target for all sales depot

Minimum dispatch target set for all grinding units, packing plants & factories

Minimum order size for plant allocation (5 tons)

Maximum order size for sales depot allocation (15 tons)

Production & distribution capacity limits, varying per day

Handle plant shutdown events & dispatch holidays (adhoc & planned)

Priority rules for supply point - delivery area combination

District/market restrictions for supply points

Preferences rules for supply sources of customers

Carrier selection & truck availability check for order execution allocation

Preferential allocation rule for Govt. & Inter State Customers

Material Type based allocation rules

Handle dealer based preferences for own truck movements at secondary Hubs.

APO Model Time & Cost basis


Logistics Cost Calculation

15


Logistics Cost Calculation

16


New Order Allocation

17


Thank you

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ramco apo case studies highlighting dispatcher -mcl

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