2. • E-Global Fashion is the hottest new
company to provide livable technology-
based fashion-ware, leveraging the latest
trends in apparel and technology
• The strategy is to expand the inventory
footprint by enabling their current retail
stores to ship directly to the customer
base.
“Wearable tech (still in its infancy) is breaking
through in tangible ways and beginning to resonate
with popular culture. We're not just talking about
watches that serve as miniature extensions of
computers and smartphones, but of apparel people
actually want to wear, marrying function with
fashion. Imagine clothing fitted with solar panels that
charge your mobile devices, smart fabrics that
optimize wearer comfort by adjusting color or texture
based on environment, or apparel that purifies the air,
omits fragrances, or transforms appearance in reaction
to mood or sound simply for fashion's sake. It's all
coming and e-Global Fashion is your tech-fashion
bridge to the future.”
- e-Global Fashion website
3. • By shipping from a few select store
locations order-to-delivery transit
times and transportation costs can
be reduced
• Expanded capabilities are:
• Point of Sale (POS) technology in stores.
This enhancement facilitated the
necessary inventory management
components, providing visibility to store
inventory with the capability to fulfill and
ship from retail stores.
• Inventory management and shipping
training across all locations
4. Current
Origin DC Order Count % of Orders
17339 12,021 66.52%
90808 6,051 33.48%
Grand Total 18,072 100.00%
• Two Distribution Centers:
• Lewisberry, PA (17339)
• Long Beach, CA (90808)
• Different “Zones” depending on
distance from the DC and the
service type
5. Current Shipment Counts by Zone and DC
Zone 17339 DC 90808 DC
2 1,922 507
3 2,117 187
4 3,244 709
5 3,041 966
6 634 1,131
7 94 594
8 969 1,957
Total: 12,021 6,051
0
500
1,000
1,500
2,000
2,500
3,000
3,500
2 3 4 5 6 7 8
Current Shipment Counts by Zone and DC
17339 90808
6. 0
200
400
600
800
1000
1200
AL AZ CO DC FL IA IL KS LA MD MI MO MT ND NH NM NY OK PA SC TN UT VT WI WY
Destination State by Origin DC
17339 90808
0
200
400
600
800
1000
1200
CA TX NC TN FL
7. Current Origin DC Information
17339 DC 90808 DC
Zone Transit Time Transit Rate Zone Transit Time Transit Rate
Average 4.21 2.12 $20.85 5.92 3.12 $29.76
Median 4.00 2.00 $11.62 6.00 3.00 $17.60
Standard
Deviation
1.61 0.99 $24.47 1.91 1.06 $34.54
8. • Six service types:
1. Priority Overnight (PO)
2. Standard Overnight (SO)
3. 2Day (E2)
4. Express Saver (XS)
5. Ground (GR)
6. Home Delivery (HD)
9. 9.56 13.02 13.91 14.87 15.48
96.48
0.00
20.00
40.00
60.00
80.00
100.00
120.00
XS HD SO E2 PO GR
Average Weight by Service Type
Service Type
Average
Weight
Standard
Deviation
XS 9.56 6.71
HD 13.02 13.55
SO 13.91 12.66
E2 14.87 21.37
PO 15.48 18.58
GR 96.48 21.15
Overall 15.26 20.90
10. Service Type
Current
Order Count
% of Total
Orders
XS 9 0.05%
PO 207 1.15%
GR 242 1.34%
SO 413 2.29%
HD 6,723 37.20%
E2 10,478 57.98%
Grand Total 18,072 100.00%
Service Types
XS
PO
GR
SO
HD
E2
11. • Shift orders with higher rates to the alternative DC with lower rate
• Results in significant cost savings
• Moves some orders to a closer DC
• Results in more efficient distribution model
Optimized
Order Count % of Order
13,073 72.34%
4,999 27.66%
18,072 100.00%
Current
Origin DC Order Count % of Orders
17339 12,021 66.52%
90808 6,051 33.48%
Grand Total 18,072 100.00%
12. Current Optimized Savings
Service Rate Sum Average Rate Rate Sum Average Rate Rate Sum Average Rate
XS $237.76 $26.42 $131.29 $14.59 $106.47 $11.83
GR $8,872.18 $36.66 $7,547.48 $31.19 $1,324.70 $5.47
PO $16,559.32 $80.00 $12,062.50 $58.27 $4,496,82 $21.72
SO $28,488.08 $68.98 $19,386.40 $46.94 $9,101.68 $22.04
HD $84,314.51 $12.54 $74,105.52 $11.02 $10,208.99 $1.52
E2 $292,168.39 $27.88 $260,047.82 $24.82 $32,120.57 $3.07
Grand
Total
$430,640.24 $23.83 $373,281.01 $20.66 $57,359.23 $3.17
13. 17339 DC 90808 DC
Grand Total
Service Current Optimized Difference Current Optimized Difference
E2 7,227 7,115 112 3,251 3,363 112 10,478
GR 160 232 72 82 10 -72 242
HD 4,376 5,353 977 2,347 1,370 -977 6,723
PO 84 122 38 123 85 -38 207
SO 171 245 74 242 168 -74 413
XS 3 6 3 6 3 -3 9
Grand Total 12,021 13,073 1,052 6,051 4,999 -1,052 18,072
17. 17339 DC 90808 DC
Zone
Transit
Time
Transit Rate Zone
Transit
Time
Transit Rate
Current
Average
4.21 2.12 $20.85 5.92 3.12 $29.76
Optimized
Average
3.76 1.84 $18.48 4.55 2.39 $26.35
Difference 0.45 0.28 $2.37 1.37 0.73 $3.41
19. • Changing to the cheaper transit rate moves 1,052 orders from 90808
to 17339
• $57,359.23 in transit rate savings
• Decreased average transit zone, time, and rate
• Increased efficiency in zone shipments
22. Current
Origin DC Order Count % of Orders
17339 PA 12,021 66.52%
90808 CA 6,051 33.48%
Grand Total 18,072 100.00%
• After optimization, orders were
shipping out of the two distribution
centers as well as five other retail
locations
Optimized
Origin Order Count % of Orders
33304 FL 836 4.63%
80640 CO 838 4.64%
28214 NC 1,946 10.77%
90808 CA 2,693 14.90%
75141 TX 2,967 16.42%
60525 IL 3,462 19.16%
17339 PA 5,330 29.49%
Grand Total 18,072 100.00%
23. OpCo Current Count
% of Current
Orders
Optimized
Count
% of
Optimized
Orders
Express 11,107 61.46% 6,332 35.04%
Ground 6,965 38.54% 11,740 64.96%
25. Optimized
Origin E2 GR HD PO SO XS
Grand
Total
33304 16 820
836
80640 547 1 247 11 31 1
838
28214 92 83 1,770 1
1,946
90808 628 35 1,871 50 109
2,693
75141 1,761 42 1,082 34 48
2,967
60525 1,445 127 1,765 42 82 1
3,462
17339 1,233 183 3,698 70 142 4
5,330
Grand
Total
5,706 487 11,253 207 413 6 18,072
Current
Origin E2 GR HD PO SO XS
Grand
Total
17339 7,227 160 4,376 84 171 3 12021
90808 3,251 82 2,347 123 242 6 6051
Grand
Total
10,478 242 6,723 207 413 9 18,072
26. • Found through process of trial and error,
and team collaboration
• Additional origin locations were
consolidated at small cost increases
Zip Count
33304 FL 836
80640 CO 838
28214 NC 1,946
75141 TX 2,967
60525 IL 3,462
Total: 10,049
836 838
1,946
2,967
3,462
33304
FL
80640
CO
28214
NC
75141
TX
60525
IL
27. • 33304 – Ft. Lauderdale, FL
• 80640 – Henderson, CO
• 28214 – Charlotte, NC
• 75141 – Hutchins, TX
• 60525 – La Grange, IL
• DC 17339 – Lewisberry, PA
• DC 90808 – Long Beach, CA
28. Origin Order Count % of Orders
33304 836 4.63%
80640 838 4.64%
28214 1,946 10.77%
90808 2,693 14.90%
75141 2,967 16.42%
60525 3,462 19.16%
17339 5,330 29.49%
Grand
Total
18,072 100.00%
836 838
1,946
2,693
2,967
3,462
5,330
33304
FL
80640
CO
28214
NC
DC
90808
CA
75141
TX
60525
IL
DC
17339
PA
29. • Current orders with next day delivery
(across all services) count at 2,409
• Optimized orders with next day
delivery (across all services) count at
9,262
• Found by evaluating changed service
types and origin locations
Current Optimized % Change
2,409 9,262
384.3%
Increase
2,409
9,262
Current Optimized
30. • Transit cost found based on origin
location, service, weight, and
destination
• Optimized services and increased
number of origin locations led to
significant cost savings
Current Optimized Difference % Change
$430,640.24 $255,681.34 $174,958.90 40.63%
$23.83 $14.15 $9.68 40.62%
$430,640.24
$255,681.34
Current Optimized
31. • 2 DCs, 5 Retail Locations
• More efficient OpCo and service type assignments
• 384.3% Next Day Order-To-Delivery Cycle Time improvement
• Significant increase in customer service quality
• Over 51% of total orders were next day
• $174,958.90 in savings
• 40.6% reduction in transit costs
• $255,681.34 in total costs
32. • Thank you for the opportunity to present
• Questions?
33. 1. Vlookup to find transit time, transit rate, and zone for each distribution center and retail
location into a single Excel spreadsheet
2. Used a MIN(_) function to find the cost of the CHEAPEST rate for each shipment
• Assigned a row identifier to the cheap rates to connect the LOCATION of the CHEAPEST
rate
• Used an IF(_) statement to find the TIME for the CHEAPEST rate for every designated
location found prior
3. Compared the CURRENT TIME to the CHEAPEST rate TIME and used IF(_) function to
reassign services if there was a faster service available for less cost
4. Reassigned OpCos according to the new service
34. 5. Used IF(_) and VLOOKUP functions to find transit rates for the optimized services across
all retail and DC locations
6. Used MIN(_) function to find the NEW lowest cost
7. Used IF(_) function to find NEW CHEAPEST origin location
8. Used IF(_) and VLOOKUP functions to find a new transit rate based on the NEW origin
location
9. Used IF(_) and VLOOKUP functions to find a new transit TIME based on the NEW origin
location
10. Altered formulas to see the cost/time effects of moving orders from different origin
locations
