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OMSAN LOJİSTİK. Transportation and Distribution Transportation Planning Pyramid Measures & Goals Transport Infrastructure P ROCESSES Transport Workforce.

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Presentation on theme: "OMSAN LOJİSTİK. Transportation and Distribution Transportation Planning Pyramid Measures & Goals Transport Infrastructure P ROCESSES Transport Workforce."— Presentation transcript:


2 Transportation and Distribution

3 Transportation Planning Pyramid Measures & Goals Transport Infrastructure P ROCESSES Transport Workforce Network Design Routing & Scheduling Shipment Management Fleet/Carrier Management Freight Management PLANNING TRANSPORTATION

4 Page 4 T&D Key Performance Indicators

5 Page 5 T&D Design Principles rT&D KPIs rNetwork Rationalization rConsolidation & Pooling –Inbound Consolidation Programs –Backhauls –On-the-Fly Consolidation rStrategic Use of Third Parties rStandard Container Sizes & Pools rAutomated Shipment Planning –Mode Selection –Carrier Selection rAutomated Routing & Scheduling rShipment Tracking & Visibility rCarrier Measurement and Monitoring rCore Carrier Design

6 Page 6 Logistics Hierarchies Single-Level Designs: Central Distribution Two-Level Designs: Central & Regional Distribution Three-Level Designs: Central, Regional, & Local Distribution

7 Distribution Network Design Decisions Production Locations Sourcing Number of Warehouses Locations of Warehouses Type of Warehouses Distribution Territories

8 Page 8 Rational Network



11 Lowest Cost Network



14 Show Unsatisfied Demand for Product 05


16 Page 16 Shipment Planning

17 Page 17 Shipment Planning

18 Mode Selection P RICE H IGH L OW L H IGH LCL O CEAN T RUCKLOAD LTL A IR F REIGHT Speed & Reliability

19 Page 19 Value-Density Analysis

20 Page 20 Pooling & Consolidation

21 Page 21 Automated Routing & Scheduling










31 Page 31 Transportation Management Systems TMS FunctionTMS Vendors 1.Vehicle Routing and Scheduling Planning Dispatch ARC CAPS Logistics RoadNet RoadShow Bowne-Distinct Caliper TransCad 2.Supply Chain Management Design & Analysis Production Planning Insight SAILS Bender Phydias CAPS Logistics 3.Shipment Planning Design & Analysis Operational Shipment Planning Insight ShipConsII CAPS Logistics CCA TransPlan Carrier ManagementPrinceton SuperSpin SABRE ALK 5.GIS TransportationMapInfo ESRI Arc/Info Caliper TransCad CAPS Logistics 6.Customized TMSSABRE CAPS Logistics Mercer Source: Bill Nulty, Ph.D. Shipment Planning in Transportation and Distribution Short Course. The Logistics Institute at Georgia Tech, 1996.

32 Edward H. Frazelle, Ph.D.Page 32 Reverse Logistics Recycling Returnable Containers Returns Dunnage Containers & Packaging

33 Page 33 3PL: If, When, and How If - there is strategic advantage to do so an a positive contribution to EVA. When - there are opportunities to take advantage of consolidation opportunities and/or specialization of work. How - partner relationship management.

34 Edward H. Frazelle, Ph.D.Page 34 High-Speed Shipping

35 Transportation Gap Analysis

36 Transportation Case Example U.S. Food Service

37 Food Service Profile Strengths Private fleet with 343 tractors and 517 trailers Slow movers consolidated in single facility Fixed routes Backhauls designed into 20% of fixed routes Managers evaluated on cases per truck, collisions, error rate GFS controls 70% of inbound freight, carrier selection Formal carrier evaluation & monitoring process Dynamic routing system On-board positioning and rerouting Some inbound consolidation planning 90% inbound trailer utilization

38 Transportation Management System Case Example U.S. Chemicals

39 ACC Current TMS Assessment

40 Functionality Families

41 Transportation Objects Containers Vehicles Orders Shipments Carriers Documents Payments Carriers Shippers Consignees...

42 Mid-Term System Architecture

43 Long-Term Design Principles There is justification for an integrated TMS incorporating freight, container, and shipment management. SAP will not be the long-term solution provider. Current TMS vendors are moving too fast and have a higher commitment to transportation solutions. Logistics is not a SAP priority. SAP interface development = custom development in time and expense. Vendor developments are leading to consolidated applications functionality and industry solutions. The long-term solution design should be based on justifiable best, not current T&D practices and strategies.

44 TMS Package Alternatives

45 TMS Team Organization Executive sponsor from the user community. User-IT teams for each TMS functionality family (i.e. FM, CM, SM, DS). IT Team Leader to be Project FOCUS liaison. T&D Team Leader to be Common Process liaison. Subject matter expert facilitator to assist IT & T&D team leaders.

46 TMS Transaction Database & Data Warehouse Design Based on transportation objects (i.e. carriers, containers, orders, shipments, etc.) Relational and consistent with IT Standards (i.e. ORACLE, Sybase) Data Warehouse fields should parallel transaction database fields where possible Single-point data entry and on-line data integrity audits

47 TMS Strategic Decisions: Outsourcing, SAP, CDI, CDE, BOB Vendor and package review to focus on large TMS providers, and alternative links with Internet applications, outsource providers, and carrier/freight forwarder applications Evaluation of budget, time, risk, and benefits of each functionality development alternative (i.e. outsourcing, status quo waiting for SAP solution, internal custom development, external custom development, and best-of-breed package implementation) Custom development vendor candidates should have at least 50% of required functionality already developed and verifiable operating Strategic partnerships with outsource and/or custom development vendors Follow Amoco corporate guidelines for evaluating and selecting development direction

48 Page 48 Exercise Our biggest opportunity for improvement in transportation & distribution is: __________________________________ __________________________________ __________________________________ __________________________________ __________________________________ ______________________

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