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In-bound, Out-bound & Spare Parts                     Logistics – Transportation                               Optimizatio...
1. Business Challenges2. OptiRisk Transport Planner & Scheduler3. Case Study4. Implementation Approach                   ©...
Customers                                Manufacturing                                        Spare Parts LogisticsORPSS (...
Key QuestionsHow many trucks to use from the set of fleet andfrom which carrier?Which shipment option to use for each orde...
Should the company buy (or) lease (or) rent trucks?What-if the truck capacities are increased/decreased?What would be the ...
Route optimization                                    Minimize overall travel distance.                     Packing       ...
1. Business Challenges2. OptiRisk Transport Planner & Scheduler3. Case Study4. Implementation Approach                   ©...
Software and What It Does for YOUUSE OPTIRISK / IBM SOFTWARE to get Optimized Vehicle Routes      Software used custom OR ...
On-Time Delivery                                                           Increased Visibility Reduced Stock-outs       ...
Shareholder Value                                              ROI                 Profit                                 ...
Web based application; access from anywhere.Seamless integration with ERP systems.Planning generated in minutes.Custom vie...
OptiRisk Route Planner & Scheduler Studio (ORPSS)           © 2010-12 OptiRisk India (P) Ltd, All rights reserved   12
Delivery Routes                                                              showing the                                  ...
Route Efficiency                          (Liters Delivered / Distance)                              Delivery Efficiency  ...
1. Business Challenges2. OptiRisk Transport Planner & Scheduler3. Case Study4. Implementation Approach                   ©...
The client is one of the multinational fuel distributioncompanies having wide presence in India.                     The a...
Identify Optimal out-bound logistics route plan on a daily basis                         for every filling plant.         ...
Average saving of 23% per day                   70000                   60000                   50000                     ...
23%+ reduction in total out-bound delivery transport cost.Total planning time was reduced to minutes.Delays due to manual ...
OptiRisk Transport Planner & SchedulerAutomated planning tool to plan and schedule shipment pick-up / deliveries.Scientifi...
1. Business Challenges2. OptiRisk Transport Planner & Scheduler3. Case Study4. Implementation Approach                   ©...
Data driven Approach Robust solution for uncertain environment                                                            ...
Other RDBMS                   Database DB2                                                                                ...
__________________________________________________________________________________________________________________________...
© 2010-12 OptiRisk India (P) Ltd, All rights reserved   25
Bala. Padmakumar                                     Ph: +91 98406 18472 / +91 44 4501 8472                               ...
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Transportation planner scheduler optimization optirisk

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Save 10% to 30% on transportation cost by using OptiRisk transportation planner and scheduler solution.

Transportation planner scheduler optimization optirisk

  1. 1. In-bound, Out-bound & Spare Parts Logistics – Transportation Optimization Ph: +91 98406 18472/ +91 44 4501 8472 Bala. Padmakumar Email : optimize@optiriskindia.com Director & CEO Web: http://www.optiriskindia.com OptiRisk India(A certified IBM partner) © 2010-12 OptiRisk India (P) Ltd, All rights reserved
  2. 2. 1. Business Challenges2. OptiRisk Transport Planner & Scheduler3. Case Study4. Implementation Approach © 2010-12 OptiRisk India (P) Ltd, All rights reserved 2
  3. 3. Customers Manufacturing Spare Parts LogisticsORPSS (OptiRisk Route Planner & Scheduler) can be used for in-bound, out-bound, and spare parts logistics transport planning and scheduling.
  4. 4. Key QuestionsHow many trucks to use from the set of fleet andfrom which carrier?Which shipment option to use for each order?Which customer /vendor should be served by each truckand in what sequence?Are there ways to reduce cost and still maintain/ improve service level? © 2010-12 OptiRisk India (P) Ltd, All rights reserved 4
  5. 5. 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?What-if alternate transportation options are used? © 2010-12 OptiRisk India (P) Ltd, All rights reserved 5
  6. 6. Route optimization Minimize overall travel distance. Packing Maximize truck capacity utilization Optimizationkey challenges Fleet Mix Pick the fleets to meet the service level atOptimization Optimization minimal cost addresses Shipment option Pick the shipment option to meet the optimization service level at minimal cost Truck usage Minimize truck turn-around time and Optimization truck idling © 2010-12 OptiRisk India (P) Ltd, All rights reserved 6
  7. 7. 1. Business Challenges2. OptiRisk Transport Planner & Scheduler3. Case Study4. Implementation Approach © 2010-12 OptiRisk India (P) Ltd, All rights reserved 7
  8. 8. Software and What It Does for YOUUSE 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 © 2010-12 OptiRisk India (P) Ltd, All rights reserved 8
  9. 9. On-Time Delivery Increased Visibility Reduced Stock-outs  Greater visibility and control  Improved Service Level  Increased Planning Productivity  Satisfied Customers  Enabled Employees  Increased Business Optimized Delivery Routes Ease of Use Fewer Fleet requirements  Visual Displays  Lesser driving distance / time.  Ready to print customized reports  Lower cost & Investment  Visual Performance dash boards  Increased ROI for KPI tracking Payback in months  Less than six months  ROI 1: 30 to 70 times (in 5 years) © 2010-12 OptiRisk India (P) Ltd, All rights reserved 9
  10. 10. Shareholder Value ROI Profit Investment Cost Revenue # TrucksLess mileage Business (10 to 30% ) Service Level . Planning Lead time Errors (5 to 10%) © 2010-12 OptiRisk India (P) Ltd, All rights reserved 10
  11. 11. 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 trackingand planning.Manual over-ride on routes to take care ofunforeseen change in traffic and routes. © 2010-12 OptiRisk India (P) Ltd, All rights reserved 11
  12. 12. OptiRisk Route Planner & Scheduler Studio (ORPSS) © 2010-12 OptiRisk India (P) Ltd, All rights reserved 12
  13. 13. Delivery Routes showing the driving routes & delivery pointsDisplay of routes on MapsReal time tracking of vehicles on mapsManually changing routes on maps © 2010-12 OptiRisk India (P) Ltd, All rights reserved 13
  14. 14. 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 © 2010-12 OptiRisk India (P) Ltd, All rights reserved 14
  15. 15. 1. Business Challenges2. OptiRisk Transport Planner & Scheduler3. Case Study4. Implementation Approach © 2010-12 OptiRisk India (P) Ltd, All rights reserved 15
  16. 16. The client is one of the multinational fuel distributioncompanies having wide presence in India. The aim was to develop a automated planningtool which would reduce total cost incurred on out-bound logistics 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. © 2010-12 OptiRisk India (P) Ltd, All rights reserved 16
  17. 17. Identify Optimal out-bound logistics route plan on a daily basis for every filling plant. Input Given Output Delivery PlanOrder Details Fleet Details Delivery Note Id Delivery Note Id Type of trucks Truck Id Customer Id Capacity Delivery Sequence Id Customer approximate Cost based on location distance Route Distance Number & Type of ordered Type of Truck Zone Route cost © 2010-12 OptiRisk India (P) Ltd, All rights reserved 17
  18. 18. Average saving of 23% per day 70000 60000 50000 Savings Cost Incurred 40000 30000 20000 10000 0 02.06.2012 04.06.2012 09.06.2012 11.06.2012 23.06.2012Original cost 50,868 47,513 44,271 45,518 62,448New planned cost 37,784 42,645 30,664 33,651 38,204 No of deliveries 47 43 43 46 51 © 2010-12 OptiRisk India (P) Ltd, All rights reserved 18
  19. 19. 23%+ reduction in total out-bound delivery transport cost.Total planning time was reduced to minutes.Delays due to manual planning were completely eradicated.Improved service level and increased customer satisfaction.Payback of investment was less than a monthROI of the solution was around 50 times for a 5 year period. © 2010-12 OptiRisk India (P) Ltd, All rights reserved 19
  20. 20. OptiRisk Transport Planner & SchedulerAutomated planning tool to plan and schedule shipment pick-up / deliveries.Scientifically proven models to identify least cost shipment & route plan.Seamless integration with ERPVisual display of plans on maps for ease of useFlexibility to change system generated plans © 2010-12 OptiRisk India (P) Ltd, All rights reserved 20
  21. 21. 1. Business Challenges2. OptiRisk Transport Planner & Scheduler3. Case Study4. Implementation Approach © 2010-12 OptiRisk India (P) Ltd, All rights reserved 21
  22. 22. Data driven Approach Robust solution for uncertain environment Observe • Expected variation, • Rare events (Tail Risk)Solution Methodology Identify optimization opportunities Prioritize it Optimize Analyze Implement one or a group Stabilize solution Go to the next opportunity IF © 2010-12 OptiRisk India (P) Ltd, All rights reserved 22
  23. 23. Other RDBMS Database DB2 Top Management . . . .Web Server Intranet Firewall Planning & Execution External Staffs SPSS Server Router (Optional) Optimization Server Dealers Internet External Data Server (Optional) Suppliers © 2010-12 OptiRisk India (P) Ltd, All rights reserved 23
  24. 24. ___________________________________________________________________________________________________________________________Achieve more with less © 2010-12 OptiRisk India (P) Ltd, All rights reserved 24
  25. 25. © 2010-12 OptiRisk India (P) Ltd, All rights reserved 25
  26. 26. Bala. Padmakumar Ph: +91 98406 18472 / +91 44 4501 8472 Email: optimize@optiriskindia.com Web: http://www.optiriskindia.com/Asia Pacific, Africa, Australia & Middle East : Europe & America : No 12, Ground Floor, 25th Cross Street OptiRisk R&D House One Oxford Road, Thiruvalluvar Nagar, Thiruvanmiyur, Uxbridge Middlesex, UB9 4DA, Chennai - 600041, India. United Kingdom. © 2010-12 OptiRisk India (P) Ltd, All rights reserved 26

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