Published on

A logistical analysis of NCSU libraries inter-library loan service- TRIPSAVER

  • Be the first to comment

  • Be the first to like this

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide


  1. 1. TRIPSAVER A Logistical Analysis <ul><li>BY VENKITASUBRAMANIAN AKSHAY </li></ul><ul><li>Graduate Student in Industrial and Systems Engineering, North Carolina State University </li></ul><ul><li>Student Assistant, Research and Information Services- NCSU Libraries, North Carolina State University </li></ul>
  2. 2. Executive Summary <ul><li>2-3 days required to fulfill a patron’s request by Tripsaver </li></ul><ul><li>Performed a cost benefit analysis on different shipping modes that satisfy service level requirements </li></ul><ul><li>Performed a sensitivity analysis in order to determine the behavior of shipping modes to loads </li></ul><ul><li>Results indicate that service costs cannot be further reduced. </li></ul><ul><li>A mixed use of third party logistics (TPL) service and current van service drastically improve service quality for NCSU patrons to same business day delivery at their location of choice in the Triangle area. </li></ul>
  3. 3. What is Tripsaver? <ul><li>A service provided by NCSU Libraries to NCSU patrons to facilitate sharing of returnables among the libraries in the T riangle R esearch L ibrary N etwork ( TRLN ). </li></ul><ul><li>Returnable is anything that can be borrowed from a library. </li></ul><ul><li>Incoming are the returnables requested by NCSU patrons from other libraries in TRLN network. </li></ul><ul><li>Outgoing is sum of returnables returned by NCSU and borrowed from NCSU in the TRLN network. </li></ul>
  4. 4. T riangle R esearch Library N etwork ( TRLN ) University of North Carolina Library System D.H.Hill Library, North Carolina State University Perkins Library Duke University James.E.Shepard Memorial Library North Carolina Central University
  5. 5. How does it work? Request Cycle Return Cycle
  6. 6. <ul><li>The returnables that need to be shipped on the van are a mix of lent from NCSU and borrowed by NCSU . </li></ul><ul><li>All returnables are returned in an average period of two months (i.e. returnable issued on July 1 st is due on September 1 st ). </li></ul><ul><li>Inflation of gas prices are negligible in our van cost analysis. </li></ul><ul><li>Approximate weight of package of 2 returnables is 4 lbs for TPL analysis. </li></ul>Analysis Assumptions
  7. 7. Service Level Definitions <ul><li>Daily--- The service delivers returnable to the patron before the end of business day </li></ul><ul><li>Semiweekly--- The service delivers returnable to the patron twice every week- (The current service level) </li></ul><ul><li>Weekly--- The service delivers returnable to the patron once a week </li></ul>
  8. 10. Analysis Breakdown <ul><li>TPL DAILY SERVICE </li></ul><ul><li>VS </li></ul><ul><li>VAN SERVICE for DAILY SERVICE </li></ul><ul><li>DAILY VAN SERVICE </li></ul><ul><li>VS </li></ul><ul><li>Semiweekly OR WEEKLY VAN SERVICE </li></ul>
  9. 11. Third Party Logistics Analysis <ul><li>UPS was chosen as the TPL for TRLN study as they already work with the interlibrary service (i.e. outside the TRLN) </li></ul><ul><li>The UPS rate used for the analysis is the service rate for 2-3 business days for interlibrary loans </li></ul><ul><li>Hence, this UPS rate can be applied for same day delivery in the Triangle area. </li></ul>
  10. 12. TPL Cost Breakdown Table Outgoing UPS PACKAGES COST UNC 3729 $18,272.10 NCCU 114 $558.60 Duke 3260 $15,974.00   Estimated Cost $34,804.70       Incoming UPS PACKAGES COST UNC 2232 $10,936.80 NCCU 51 $249.90 Duke 1538 $7,536.20   Estimated Cost $18,722.90       Daily Service TOTAL COST $53,527.60
  11. 13. Van Rental Cost Table 10’ Trucks or Cargo Van Cargo Van or 10' Trucks Rentals Source: Budget Commercial Service Weekly $ 200.00   Monthly $ 1,210.16 Optimal Yearly $ 14,455.25   Miles Per gallon 12-14 miles  
  12. 14. Van Service Operational Costs Estimated Driver Costs (per Hr) $ 12.07 Source: Estimated driving time (Hrs/day) 10 Miles to travel per day (Roundtrip) 81.6 miles Google Maps- Route: NCSU<->UNC<->NCCU<->Duke Fuel Cost (per gallon) $ 2.65 Fuel requirements/day $ 33.13 Fuel Efficiency: 12 mpg Distance covered per day: 150 miles
  13. 15. Van Service Cost Breakdown Service Level Days of Service Fuel Req Driver Cost Van rental Total Cost Daily 260 $ 8,612.50 $ 31,382.00 $ 14,521.92 $ 54,516.42 Bi weekly 122 $ 4,041.25 $ 14,725.40 $ 14,521.92 $ 33,288.57 Weekly 52 $ 1,722.50 $ 6,276.40 $ 14,521.92 $ 22,520.82
  14. 17. SERVICE LEVEL COMPARISON Service Level Type Cost Returnables Cost/returnable % SAVING- Daily Service % SAVING- Van Service TPL- DAILY UPS $53,527.60 21844 $ 2.45 -66%   DAILY VAN $ 54,516.42 21844 $ 2.50 ESTIMATED CURRENT TOTAL SERVICE COSTS FOR TRLN. Semiweekly VAN $ 33,288.57 21844 $ 1.52   39% WEEKLY VAN $ 22,520.82 21844 $ 1.03   59%
  15. 18. Analysis Insights <ul><li>Service costs cannot be reduced from current level. </li></ul><ul><li>A TPL solution for the entire Tripsaver Service would be 66% more expensive than current service cost faced by NCSU library. </li></ul><ul><li>A TPL solution is optimal if the returnable demand is less than 8000 returnables. </li></ul><ul><li>Returnables requested by NCSU patrons per annum is around 7500. </li></ul>
  16. 19. Recommendations <ul><li>A mixed transport mode is recommended for Tripsaver Service </li></ul><ul><ul><li>For returnables borrowed by NCSU, TPL service can be used </li></ul></ul><ul><ul><li>For returnables requested by other universities and return of borrowed returnables, VAN service can be used </li></ul></ul>
  17. 20. Tripsaver Service Impact <ul><li>Service Time Impact </li></ul><ul><li>The Service time for NCSU patrons can be reduced from 2-3 days to same business day delivery </li></ul><ul><li>Service Value Impact </li></ul><ul><li>Deliveries can be made at the patrons choice of place in the Triangle circuit instead of NCSU Libraries </li></ul>
  18. 21. NEW TRIPSAVER SERVICE COSTS (per Annum) <ul><li>Current Service Charges </li></ul><ul><li>- Current Handling costs at D.H.Hill for incoming books </li></ul><ul><li>VAN costs for incoming books*_________________________ </li></ul><ul><li>≡ $ 19,603.59*** </li></ul><ul><li>OVERALL SAVINGS- 2%** </li></ul><ul><li>* Van cost is deducted as the van is primarily used by NCSU to satisfy the requests of other universities in the network </li></ul><ul><li>** From current total per annum cost faced by NCSU which was estimated to be $20,000 </li></ul><ul><li>*** Estimate accounts for labor charges for UPS handling faced by host libraries (packaging and checking out) </li></ul>
  19. 22. Future Direction of Study <ul><li>Perform a cost-service breakdown for UPS services to further optimize costs. </li></ul><ul><li>Tweak the Tripsaver process in order to synchronize with UPS shipping. </li></ul><ul><li>Analyze the cost if the return of the book was through an envelope mailed along with the book. </li></ul><ul><li>Analyze the packaging costs and methods related to logistics of book through UPS and traditional van service . </li></ul>
  20. 23. ANY QUESTIONS?
  21. 24. SOURCES OF INFORMATION <ul><li>Library Statistics: </li></ul><ul><li>US Labor Statistics: </li></ul><ul><li>Route Distance Estimations: Google Maps </li></ul><ul><li>Gas Prices: </li></ul><ul><li>Cargo Van Rental Costs: Budget Rentals Corporate Sales Call </li></ul><ul><li>Subject Matter Expert: James .B. Harper- MLIS, NCSU Libraries- [email_address] </li></ul><ul><li>  </li></ul>
  22. 25. THANK YOU!