1. OMSAN LOJİSTİK

2. Transportation and Distribution

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

4. T&D Key Performance Indicators

5. T&D Design Principles T&D KPIs Network Rationalization
Consolidation & Pooling
Inbound Consolidation Programs
Backhauls
On-the-Fly Consolidation
Strategic Use of Third Parties
Standard Container Sizes & Pools
Automated Shipment Planning
Mode Selection
Carrier Selection
Automated Routing & Scheduling
Shipment Tracking & Visibility
Carrier Measurement and Monitoring
Core Carrier Design

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. Rational Network

11. Lowest Cost Network

14. Show Unsatisfied
Demand for Product 05

16. Shipment Planning

17. Shipment Planning

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

19. Value-Density Analysis

20. Pooling & Consolidation

21. Automated Routing & Scheduling

31. Transportation Management Systems
TMS Function
TMS Vendors 1.
Vehicle Routing and Scheduling
CAPS Logistics
Planning
RoadNet
Dispatch
RoadShow
ARC
Bowne-Distinct
Caliper TransCad 2.
Supply Chain Management
Insight SAILS
Design & Analysis
Bender Phydias
Production Planning
CAPS Logistics 3.
Shipment Planning
Insight ShipConsII
Design & Analysis
CAPS Logistics
Operational Shipment Planning
CCA TransPlan 2000 4.
Carrier Management
Princeton SuperSpin
SABRE
ALK 5.
GIS Transportation
MapInfo
ESRI Arc/Info
Caliper TransCad
CAPS Logistics 6.
Customized TMS
SABRE
CAPS Logistics
Mercer
Source:
Bill Nulty, Ph.D. “Shipment Planning” in Transportation and Distribution Short Course. The
Logistics Institute at Georgia Tech, 1996.

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

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

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
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. Exercise
Our biggest opportunity for improvement in transportation & distribution is: ________________________________________________________________________________________________________________________________________________________________________________________________