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Planning Automation in Cold Chain
Planning Automation in Cold Chain
Planning Automation in Cold Chain
Planning Automation in Cold Chain
Planning Automation in Cold Chain
Planning Automation in Cold Chain
Planning Automation in Cold Chain
Planning Automation in Cold Chain
Planning Automation in Cold Chain
Planning Automation in Cold Chain
Planning Automation in Cold Chain
Planning Automation in Cold Chain
Planning Automation in Cold Chain
Planning Automation in Cold Chain
Planning Automation in Cold Chain
Planning Automation in Cold Chain
Planning Automation in Cold Chain
Planning Automation in Cold Chain
Planning Automation in Cold Chain
Planning Automation in Cold Chain
Planning Automation in Cold Chain
Planning Automation in Cold Chain
Planning Automation in Cold Chain
Planning Automation in Cold Chain
Planning Automation in Cold Chain
Planning Automation in Cold Chain
Planning Automation in Cold Chain
Planning Automation in Cold Chain
Planning Automation in Cold Chain
Planning Automation in Cold Chain
Planning Automation in Cold Chain
Planning Automation in Cold Chain
Planning Automation in Cold Chain
Planning Automation in Cold Chain
Planning Automation in Cold Chain
Planning Automation in Cold Chain
Planning Automation in Cold Chain
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Planning Automation in Cold Chain

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Presentation taking about how cold chain industry can reduce the investment requirements and overall operating expenses by using IT tools, which automates planning process and also comes with optimal …

Presentation taking about how cold chain industry can reduce the investment requirements and overall operating expenses by using IT tools, which automates planning process and also comes with optimal plans.

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  • Add this Conference on“Warehousing & Cold Chain Infrastructure” 28 June 2013, Hotel Hilton, Chennai
  • << Need to be changed>>
  • 1) Managerial decision making in minutes2) High level visibility into the operations3) Consistent and robust decision always4) CollaborationIT (software) and internet. Up to date information from anywhere at any time.
  • Technology is the enabler in making the planning automation and plan optimization possible.
  • What we do?We develop solutions (Software) >> that automates planning process Software >> which comes up with optimal plans Using >> Mathematics (Operations Research, Analytics)
  • << Need to be changed>>
  • Plant -> Supply center
  • N/w design based on scientifically proven methods, can save investment requirement and reduces operational expenses
  • Demand - location - Quantity - change over timeRisk << on the right sodeInternationalNatural calamitiesWarOil CrisisLocalPoliticalRegulatoryEmployee relationshipDONE
  • <<To-do>>Change..
  • << Need to be changed>>
  • Warehouse space optimizationContainer Optimization
  • ALMPortfolio Optimization
  • << Need to be changed>>
  • Transcript

    • 1. © 2013 OptiRisk India (P) Ltd, All rights reserved Bala. Padmakumar Director & CEO OptiRisk India Planning Automation & Optimization in Cold Chain Ph: +91 98406 18472/ +91 44 4501 8472 Web: http://www.optiriskindia.com Email : optimize@optiriskindia.com 28th June 2013 Conference on Warehouse & Cold Chain Infrastructure Hotel Hilton, Chennai
    • 2. 2 1. Introduction 2. Cold Chain Network Design 3. Transportation Planning 4. Other Solution 5. Who we are © 2013 OptiRisk India (P) Ltd, All rights reserved
    • 3. 3© 2013 OptiRisk India (P) Ltd, All rights reserved While meeting many practical limitations / constraints Manual Semi-Automatic Automatic Centralized Decentralized To achieve certain goals In a given time line Using limited resources
    • 4. 4© 2013 OptiRisk India (P) Ltd, All rights reserved Supply Procurement •Precooling System •Farms (Rural Markets) •Manufacturers Transport •Refrigerated Trucks •Refrigerated Railway Wagons •Refrigerated Cargo Containers Storage •Cold Storage •Warehouses Transport •Refrigerated Trucks •Refrigerated Railway Wagons •Refrigerated Cargo Containers End Customer •Retail, Terminal, Markets, Factory, Ports, Airport Supply Chain TEMPERATURE CONTROL (REFRIGERATION) COLD CHAIN LOGISTICS Fruits & Vegetables Meat Fish & Seafood Dairy Products Beverages Pharmaceutical
    • 5. 5© 2013 OptiRisk India (P) Ltd, All rights reserved Managerial decision making in minutes High level visibility into the operations Consistent and robust decision always Collaboration
    • 6. To achieve More (Benefits) with Less (Resource) 6© 2013 OptiRisk India (P) Ltd, All rights reserved help stake holders Logistics Companies Supplier Customer Operating Efficiency Reduce wastage Reduce delivery time
    • 7. + + =Math Science Common Sense 7© 2013 OptiRisk India (P) Ltd, All rights reserved Math Analytics Predictive Analysis Operational Research Optimization Meet Need Technology Products/Service
    • 8. Long Term 8© 2013 OptiRisk India (P) Ltd, All rights reserved 1+ yearsStrategic Supply Chain Network Design Medium Term Monthly / QuarterlyTactical Inventory Management Short Term Weekly/ DailyOperational Transport Planning and Scheduling
    • 9. 9© 2013 OptiRisk India (P) Ltd, All rights reserved We develop solutions That automates planning process (IT System) Which comes up with optimal plans using, • Mathematics (Operations Research, Analytics)
    • 10. 10 1. Introduction 2. Cold Chain Network Design 3. Transportation Planning 4. Other Solution 5. Who we are © 2013 OptiRisk India (P) Ltd, All rights reserved
    • 11. 11© 2013 OptiRisk India (P) Ltd, All rights reserved Supply Center
    • 12. 12© 2013 OptiRisk India (P) Ltd, All rights reserved HUB HUB HUB Spoke Spoke Spoke Spoke Spoke Spoke Destination HUB Identifying the locations and capacity of warehouses and number of trucks to meet the demand, which reduces overall investment, operating expenses and wastage from end-to-end. Supplier Customer
    • 13. 13© 2013 OptiRisk India (P) Ltd, All rights reserved Requires lesser Capital Investment Reduces operational expenses scientifically proven methods, which Network design based on
    • 14. Demand Centers Location Quantity Change over time Supply Centers Location Quantity Change over time Average Unit Cost Risks Natural Calamities War Oil Crisis Exchange Rate Regulatory Changes Employee Relationship Input What-if Analysis Warehouse Numbers Location Capacity Capacity change over time Supply demand mapping Output 14© 2013 OptiRisk India (P) Ltd, All rights reserved Warehouse Costs Labor Electricity Facilities Transport Inventory Taxes and Tariffs Constraints Capacity Local Infrastructure Input
    • 15. 15© 2013 OptiRisk India (P) Ltd, All rights reserved Software GUI * *Courtesy : IBM ILOG LogicNet+ XE MANU MANU MANU MANU MANU MANU MANU MANU MANU MANU MANU MANU MANU MANU MANU MANU MANU MANU MANU MANU MANU
    • 16. 16© 2013 OptiRisk India (P) Ltd, All rights reserved : The client is one of the largest providers of ‘Building Products’ (roofing & interiors) in India. : Due to lack of high-level supply chain visibility, plan and policy, the company resorted to “Ad-hoc”/manual order fulfillment process from different warehouses & plants to agencies, which caused higher overall logistics cost (transport, warehouse, taxes) As the demand was growing fast, the client wanted to identify new warehouse & plant locations and their capacities to optimally meet the future demand at the least cost. Furthermore, they needed to realign the supply linkages so as to maximize plant capacity utilization and rationalize inventory levels across warehouses. The client also wanted to understand the impact of the proposed Goods & Services Tax (GST) on the existing and proposed Supply Chain Network.
    • 17. 17© 2013 OptiRisk India (P) Ltd, All rights reserved What we Delivered OptiRisk developed SCN model suggested reconfiguring order delivery to reduce out-bound transportation cost, overall taxes, and inventory level. In addition, it suggested potential warehouse locations, plants, and their optimal capacity for future growth. At the end, "what-if" analysis is done to study the impact of proposed Goods & Services Tax (GST) on the existing and proposed Supply Chain Network. Key Benefits  17% saving on out-bound transportation cost + taxes  Reduced inventory  Reduced delivery time  Reduced capital requirement  Reduced carbon foot-print  Increased service level  Payback in a couple of months  ROI : 1: 70 times.
    • 18. 18© 2013 OptiRisk India (P) Ltd, All rights reserved Existing Supply Linkage Optimal Supply Linkage
    • 19. 19 1. Introduction 2. Cold Chain Network Design 3. Transportation Planning 4. Other Solution 5. Who we are © 2013 OptiRisk India (P) Ltd, All rights reserved
    • 20. © 2013 OptiRisk India (P) Ltd, All rights reserved Farm Warehouse Market Reefer Trucks Warehouse
    • 21. 21© 2013 OptiRisk India (P) Ltd, All rights reserved Key Questions How many trucks to use from the set of fleet and from which carrier? Which shipment option to use for each order? Which customer /vendor should be served by each truck and in what sequence? Are there ways to reduce cost and still maintain/ improve service level?
    • 22. What-if alternate transportation options are used? 22© 2013 OptiRisk India (P) Ltd, All rights reserved Should the company buy (or) lease (or) rent trucks? What-if the truck capacities are increased/decreased? What would be the impact of fuel price change to logistics cost?
    • 23. Software and What It Does for YOU USE OPTIRISK / IBM SOFTWARE to get Optimized Vehicle Routes Software used custom OR models + CPLEX solver. Software is customized to YOUR CLIENT+BUSINESS needs. Software helps client to achieve : Reduced fleet travel distance / time / cost (5 to 30% saving) Faster Customer-Response-Times (Optional) Extra Carriage Capacity with same fleet (3 to 10% saving) Improved Stakeholder Satisfaction Levels Significant Planning Man-Hours Saving (70% to 90% saving) Helps in long Term Planning © 2013 OptiRisk India (P) Ltd, All rights reserved 23
    • 24. 24© 2013 OptiRisk India (P) Ltd, All rights reserved  Reduced Stock-outs  Improved Service Level  Satisfied Customers  Increased Business On-Time Delivery  Greater visibility and control  Increased Planning Productivity  Enabled Employees Increased Visibility  Fewer Fleet requirements  Lesser driving distance / time.  Lower cost & Investment  Increased ROI Optimized Delivery Routes  Visual Displays  Ready to print customized reports  Visual Performance dash boards for KPI tracking Ease of Use Less than six months ROI 1: 30 to 70 times (in 5 years) Payback in months  
    • 25. Shareholder Value ROI Profit Investment Cost Revenue # Trucks BusinessLess mileage (10 to 30% ) Service Level . Lead time (5 to 10%) Planning Errors 25© 2013 OptiRisk India (P) Ltd, All rights reserved
    • 26. 26© 2013 OptiRisk India (P) Ltd, All rights reserved Web based application; access from anywhere. Seamless integration with ERP systems. Planning generated in minutes. Custom views and reports for planner, dispatcher, manager, and top-management. Integration with maps for real-time tracking and planning. Manual over-ride on routes to take care of unforeseen change in traffic and routes.
    • 27. 27© 2013 OptiRisk India (P) Ltd, All rights reserved OptiRisk Route Planner & Scheduler Studio (ORPSS)
    • 28. 28© 2013 OptiRisk India (P) Ltd, All rights reserved Delivery Routes showing the driving routes & delivery points Display of routes on Maps Real time tracking of vehicles on maps Manually changing routes on maps
    • 29. 29© 2013 OptiRisk India (P) Ltd, All rights reserved Route Efficiency (Liters Delivered / Distance) Delivery Efficiency (Liters Delivered / No of Trucks) Service level (Inventory available Time/ Total Time) System performance tracking over a period of time for better understanding and management
    • 30. 30© 2013 OptiRisk India (P) Ltd, All rights reserved 23%+ reduction in total out-bound delivery transport cost. Total planning time is reduced to minutes. Payback of investment was less than a month Improved service level and increased customer satisfaction. The client is one of the multinational fuel distribution companies having wide presence in India. The aim was to develop a automated planning tool which would reduce total cost incurred on out-bound logistics
    • 31. 31 1. Introduction 2. Cold Chain Network Design 3. Transportation Planning 4. Other Solution 5. Who we are © 2013 OptiRisk India (P) Ltd, All rights reserved
    • 32. SC Network optimization Locate facilities Match Supply & Demand Managing seasonality, and Reduce carbon footprint. Benefits: 5-15% reduction in SC costs Better service level Container Optimization Container size selection Loading schedule Benefits : Maximize container utilization Reduce number of container ( 5 to 10%) Transportation Scheduling Fleet Selection Route Plan / Schedule Benefits : 10-30% reduction in Transport cost Increased on-time deliveries Operational Inventory Management Order quantity Order time Supplier identification Benefits : 10-30% reduction in inventory Improved service level Revenue / Yield Management Choose best price Indentify Optimal Commission Benefits : Higher sales volume Better Margins 32© 2013 OptiRisk India (P) Ltd, All rights reserved Warehouse space Optimization Inventory allocation Warehouse through put management Benefits : Service time reduction 2 to 3 % reduction in space required for warehouse
    • 33. 33© 2013 OptiRisk India (P) Ltd, All rights reserved Asset Liability Management Portfolio Optimization An assets liability management tool with capability for risk management and asset rebalancing considering liabilities of the Pension fund and insurance companies Overcome the loopholes of conventional ALM methods implemented advance stochastic liability driven investment optimization techniques An a robust mathematical optimization tool which consider different assert classes to allocate the fund as per user risk preference or utility function
    • 34. 34 1. Introduction 2. Cold Chain Network Design 3. Transportation Planning 4. Other Solution 5. Who we are © 2013 OptiRisk India (P) Ltd, All rights reserved
    • 35. ___________________________________________________________________________________________________________________________ 35© 2013 OptiRisk India (P) Ltd, All rights reserved
    • 36. 36© 2013 OptiRisk India (P) Ltd, All rights reserved
    • 37. Asia Pacific, Africa, Australia & Middle East: Europe & America: No 12, 25th Cross Street Thiruvalluvar Nagar , Thiruvanmiyur, Chennai –600041, India OptiRisk R&D House, One Oxford, Uxbridge, Middlesex, UB9 4DA, United Kingdom Bala. Padmakumar Ph: +91 98406 18472 / +91 44 4501 8472 Email: optimize@optiriskindia.com Web: http://www.optiriskindia.com/ 37© 2013 OptiRisk India (P) Ltd, All rights reserved 37© 2013 OptiRisk India (P) Ltd, All rights reserved

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