logistics is generally a cost center service activity, but provides value via improved efficiency and customer satisfaction. It can quickly lose that value if the customer becomes dissatisfied. The end customer can include another process or work center inside of the manufacturing facility, a warehouse where items are stocked or the final customer who will use the product.Another much more popular derivative and a complete usage of the logistic term which has appeared in recent years is the supply chain. The supply chain also looks at an efficient chaining of the supply / purchase and distribution sides of an organization. While Logistics looks at single echelons with the immediate supply and distribution linked up, supply chain looks at multiple echelons/stages, right from procurement of the raw materials to the final distribution of finished goods up to the customer. It is based on the basic premise that the supply and distribution activities if integrated with the manufacturing / logistic activities, can result in better profitability for the organization. The local minimum of total cost of the manufacturing operation is getting replaced by the global minimum of total cost of the whole chain, resulting in better profitability for the chain members and hence lower costs for the products.

1. ESAM & SONS LOGISTICS AND
DISTRIBUTIONS LTD
CASE STUDY SCENARIO
LOGISTIC AND DISTRIBUTION
ENGINEERING
SYSTEMS
Kaan Aydin Ataoglu 14123053

2. Introduction
- Based in the Vale of Evesham.
- Reliable service 6 days a week.
- Warehouses are located.
- Cornwall
- North and South Devon
- Dorset
- East Sussex
- Gloucestershire
- Heart of England
- Somerset

3. Table of contents
• Main factors
• Current issues
• Assumptions
▫ Routes
▫ Outsourcing
▫ Scenario 1
▫ Scenario 2

4. Main factors associated
• Distribution service throughout the UK.
• Strong links with customers and suppliers.
• Service of six days a week.
• Own fleet of vehicles.
• Subcontract with others transports providers.
• New computer transport schedule.

5. Current issues
• Increased cost of the fuel price.
How will the transport planner reduce the cost
of transportation regarding the increase of fuel
price ?

6. Assumptions
• Short routes
• Outsource areas
• Allocate one truck to one area with multiple
stops.
Scenario 1 : daily delivery
Scenario 2 : delivery every 2 days

7. Routes
Trade routes Distance Time
CORNWALL : EVESHAM to PENZANCE 276 miles 6 hours 11 minutes
NORTH DEVON : EVESHAM to TORQUAY 158 mil 3 hours 20 minutes
SOUTH DEVON : EVESHAM to PLYMOUTH 171 miles 2 hours 56 minutes
DORSET : EVESHAM to Poole 150 mile 3 hours 17 minutes

8. Trade routes Distance Time
EAST SUSSEX : EVESHAM to HASTINGS 167 miles 3 hours 32 minutes
GLOUCESTERSHIRE : EVESHAM to CIRENCESTER 75.4 miles 1 hours 57 minutes
HEART OF ENGLAND : EVESHAM to SHEFFIELD 276 miles 7 hours 25 minutes
SOMERSET : EVESHAM to BRIDGEWATER 123 miles 3 hours 10 minutes
Routes

9. Outsourcing
Subcontracts can be made with some of the
best transport providers in the area for those we
do not reach.
 EAST SUSSEX
 SOUTH DEVON

10. SCENARIO 1
AREA MON TUES WED THU FRI SAT
Cornwall
Nth. Dev
Dorset
Glouces.
H.of ENG
Somerset

11. SCENARIO 2
AREA MON TUES WED THU FRI SAT
Cornwall
Nth. Dev
Dorset
Glouces.
H.of ENG
Somerset

12. Area Numbers of
warehouses
Capacity of trucks (approximately)
SCENARIO 1 SCENARIO 2
Cornwall 7 12T-14T 16T-18T
North Devon 3 7;5T 10T-12T
Dorset 3 7.5T 10T-12T
Gloucestershir
e
2 3.5T 7.5T
Heart of
England
11 16T-18T 26T
Somerset 3 7.5T 10T-12T

13. Cost of fuel (Scenario 1)
Area Truck
distance from
EVESHAM
Average mileage
(mpg)
COST OF FUEL
(p.a)
Cornwall 12T-14T 276 13 61399,80346
North Devon 7.5T 158 16 28558,69481
Dorset 7.5T 150 16 27112,68495
Gloucestershire 3.5T 75,4 26 8386,857211
H of England 16T-18T 276 12 66516,45374
Somerset 7.5T 123 16 22232,40166
1 GALLON = 4,546 L
PETROL PRICE (ppl) 9/10/2014 101,95

14. Cost of fuel (Scenario 2)
Area Truck
distance from
EVESHAM
Average mileage
(mpg)
COST OF FUEL
(p.a)
Cornwall 16T-18T 276 12 33258,23
North Devon 10T-12T 158 13 17574,58
Dorset 10T-12T 150 13 16684,73
Gloucestershire 7.5T 75,4 16 6814,32
H of England 26T 276 10 39909,87
Somerset 10T-12T 123 13 13681,48
1 GALLON = 4,546 L
PETROL PRICE (ppl) 9/10/2014 101,95

15. Conclusion
Total cost of fuel per scenario :
Scenario 1: 214,206.87
Scenario 2: 127,923.21
ESAM&Sons Distribution should adopt the 2nd
scenario:
- Respect of time delivery
- Less cost of fuel

16. Thank You

17. Appendix

18. Routes
CORNWALL : from EVESHAM
to PENZANCE
• Distance: 276 miles
• Time: 6H11 min

19. Routes
NORTH DEVON : from
EVESHAM to TORQUAY
• Distance : 158 miles
• Time : 3h20 min

20. Routes
SOUTH DEVON : From
EVESHAM to PLYMOUTH
• Distance : 171 miles
• Time : 2H56

21. Routes
DORSET : from EVESHAM to
Poole
• Distance : 150 miles
• Time : 3h17 min

22. Routes
EAST SUSSEX : from EVESHAM
to HASTINGS
• Distance : 167 miles
• Time : 3h 32 min

23. Routes
GLOUCESTERSHIRE : from
EVESHAM to CIRENCESTER
• Distance : 75.4 miles
• Time : 1h 57 min

24. Routes
HEART OF ENGLAND : from
EVESHAM to SHEFFIELD
• Distance : 276 miles
• Time : 7h 25 min

25. Routes
SOMERSET : from EVESHAM to
BRIDGEWATER
• Distance : 123 miles
• Time : 3 h 10 min