The document discusses a case study for a consumer durable and electronics company involving warehousing and secondary distribution across Gujarat state with stringent KPIs. It describes transportation modeling procedures including mapping regions, classifying destinations, determining routes and shipment sizes, and allocating customers to distribution centers to minimize costs. It also discusses developing a trucking freight calculator worksheet to determine vehicle types and numbers based on different vehicle costs.

1. - Case Study on White Goods -
Contract Logistics Pvt. Ltd.
Plot No. 619, Rangpuri; Mahipalpur Extension
New Delhi – 110 037
info@contractlogistics.co.in

2. Case Study :White Goods
Client: A Consumer Durable and Electronics Major
Nature of Operation: Warehousing and Secondary Distribution for State
o 50,000sft warehouse
o Secondary Distribution to more than 130 accounts across Gujarat State with
less than 48hrs delivery commitment
o More than 25,000units of Consumer Durables and Electronics and 50,000
units of HHP dispatched per month from the warehouses
o Stringent KPI and process compliance norms

3. Transportation Modeling Procedure
• Map Of Relevant Regions Is Studied
• Destinations are classified into Local & UpCountry depending on location
and distance from the source city.
• In case of Local Destinations, Destinations are further classified into Milk
Runs.
• Milk Run has cities that follow a particular route. Quantity and Volume Of Goods
delivered in each Milk Run are determined using Excel Function
• Distances in the Milk Run are tabulated

4. Transportation Modeling Procedure
• The Number of Shipments is determined in determined from the Dates and
Purchase Orders of Shipments.
• Shipment Size is determined from the Volume Delivered and Total Number of
Shipments.
• Total Throughput is obtained from Quantity and Volume Column
• The Number of Vehicles is determined from the Throughput (Quantity &
Volume) , Shipment Size.

5. Transportation Modeling
• Determine the transportation network across all the nodes in the supply chain
• CAPS is a great tool to model transportation network while excel based cost
minimization can also be applied (example explained below)
• Transportation Model typically consists of a Network structure in the
following stages :
o Factory to Primary Distribution Center
o Primary Distribution Center to Secondary Distribution Center
o Secondary Distribution Center to Customer
• The first step is obtaining the Shipment History from the client. This involves
collecting data at MDC & RDC Levels.
o Goods Inbound Data
o Goods Outbound Data

6. Transportation Modeling
• Total Volume & Total Quantity are determined with Analysis From Excel
• The Latitude & Longitude of Cities are determined using the Geocoding Sites.
• Distances Between Cities Can Be Computed with the following formula:
3956.67*ACOS(COS(RADIANS(<lat2>))*COS(RADIANS(<lat1>))
*COS(RADIANS(<long1>-<long2>))+SIN(RADIANS(<lat2>))
*SIN(RADIANS(<lat1>)))
• Each customer is allocated to the nearest DC with minimal transportation cost; all
product and route constraints are considered
• Similar process is adopted for each node pairs in the multi echelon transportation
model

7. Primary Movement: Factory To MDC Template

8. Secondary Movement: MDC To RDC Template

9. Trucking Freight Calculator
• Trucking Worksheet was developed for different types of Trucks & Trailers of
different Volume and Weight Carrying Capacity
• Trucking Worksheet has Purchase Price of Vehicle, Purchase Price of Container
and Estimated Useful Life of Vehicle.
• For each Vehicle Type, different costs such as Diesel Cost, Tyre Cost, Repairs
& Maintenance, Road Tax, Permit Tax, Goods
Tax, Insurance, Salary, Overheads, Oil Cost.
• Fixed Costs & Variable Costs are Tabulated.
• Trucking Worksheet is an invaluable tool in determining the Type & Number of
Vehicles for different loads