Corporate Profile 47Billion Information Technology
Case Study : White Goods
1. - Case Study on White Goods -
Contract Logistics Pvt. Ltd.
Plot No. 619, Rangpuri; Mahipalpur Extension
New Delhi – 110 037
info@contractlogistics.co.in
2. Case Study :White Goods
Client: A Consumer Durable and Electronics Major
Nature of Operation: Warehousing and Secondary Distribution for State
o 50,000sft warehouse
o Secondary Distribution to more than 130 accounts across Gujarat State with
less than 48hrs delivery commitment
o More than 25,000units of Consumer Durables and Electronics and 50,000
units of HHP dispatched per month from the warehouses
o Stringent KPI and process compliance norms
3. Transportation Modeling Procedure
• Map Of Relevant Regions Is Studied
• Destinations are classified into Local & UpCountry depending on location
and distance from the source city.
• In case of Local Destinations, Destinations are further classified into Milk
Runs.
• Milk Run has cities that follow a particular route. Quantity and Volume Of Goods
delivered in each Milk Run are determined using Excel Function
• Distances in the Milk Run are tabulated
4. Transportation Modeling Procedure
• The Number of Shipments is determined in determined from the Dates and
Purchase Orders of Shipments.
• Shipment Size is determined from the Volume Delivered and Total Number of
Shipments.
• Total Throughput is obtained from Quantity and Volume Column
• The Number of Vehicles is determined from the Throughput (Quantity &
Volume) , Shipment Size.
5. Transportation Modeling
• Determine the transportation network across all the nodes in the supply chain
• CAPS is a great tool to model transportation network while excel based cost
minimization can also be applied (example explained below)
• Transportation Model typically consists of a Network structure in the
following stages :
o Factory to Primary Distribution Center
o Primary Distribution Center to Secondary Distribution Center
o Secondary Distribution Center to Customer
• The first step is obtaining the Shipment History from the client. This involves
collecting data at MDC & RDC Levels.
o Goods Inbound Data
o Goods Outbound Data
6. Transportation Modeling
• Total Volume & Total Quantity are determined with Analysis From Excel
• The Latitude & Longitude of Cities are determined using the Geocoding Sites.
• Distances Between Cities Can Be Computed with the following formula:
3956.67*ACOS(COS(RADIANS(<lat2>))*COS(RADIANS(<lat1>))
*COS(RADIANS(<long1>-<long2>))+SIN(RADIANS(<lat2>))
*SIN(RADIANS(<lat1>)))
• Each customer is allocated to the nearest DC with minimal transportation cost; all
product and route constraints are considered
• Similar process is adopted for each node pairs in the multi echelon transportation
model
9. Trucking Freight Calculator
• Trucking Worksheet was developed for different types of Trucks & Trailers of
different Volume and Weight Carrying Capacity
• Trucking Worksheet has Purchase Price of Vehicle, Purchase Price of Container
and Estimated Useful Life of Vehicle.
• For each Vehicle Type, different costs such as Diesel Cost, Tyre Cost, Repairs
& Maintenance, Road Tax, Permit Tax, Goods
Tax, Insurance, Salary, Overheads, Oil Cost.
• Fixed Costs & Variable Costs are Tabulated.
• Trucking Worksheet is an invaluable tool in determining the Type & Number of
Vehicles for different loads
