Upload
jeffrey-foster
View
215
Download
1
Tags:
Embed Size (px)
Citation preview
Transportation GuruVehicle Route Optimization
© 2012 LLamasoft, Inc. All Rights Reserved
LLamasoft Overview
•Optimize their end-to-end supply chain operations
•Reduce corporate risk and identify major cost savings
•Perform continuous what-if analysis
•The global leader in supply chain design technology & solution services
•Focused 100% on supply chain modeling & scenario analysis
•Headquartered in Ann Arbor, MI with support centers around the world
We are:
We enable companies to:
© 2012 LLamasoft, Inc. All Rights Reserved
Sample Customers
Automotive / Industrial Manufacturing Consumer Goods Defense
Hi-Tech / Electronics Food Beverage
Life Sciences Grocery Logistics
Apparel Manufacturing Petroleum
Public Health Retail Chemical
© 2012 LLamasoft, Inc. All Rights Reserved
Technology
© 2012 LLamasoft, Inc. All Rights Reserved
Supply Chain GuruA Complete Supply Chain Design Platform
5
An Intuitive User Interface for complete control of Supply Chain Modeling and Design Activity
A Supply Chain Intelligence Database with reference data, and pre-configured data connectors
A Design Engine containing multiple integrated solvers, operations research algorithms, and simulation engines
Vehicle Route Optimization
EnterpriseSimulation
InventoryOptimization
NetworkOptimization
© 2012 LLamasoft, Inc. All Rights Reserved
Four Components of a Comprehensive Design Solution
6
• Facility Locations• Customer
Assignments• Mode Selection
• Network Validation• Customer Service • Operational
Metrics
• Optimal Transportation Routes
• Inbound shipment consolidation
• Outbound shipment consolidation
• Safety Stock• Service vs. Inventory• Replenishment
Frequency
InventoryOptimizatio
nSimulation
Vehicle Route
Optimization
NetworkOptimizatio
n
© 2012 LLamasoft, Inc. All Rights Reserved
Transportation GuruCreating Multi-Stop Vehicle Routes
Vehicle route optimization (VRO) that creates multi-stop vehicle routes
Uses optimization to design routes for: • Inbound Consolidation• Outbound Consolidation• Periodic Shipment Balancing• Continuous Moves Backhaul• Continuous Moves Interleaved
Shipments*• Asset Planning*
Fully integrated within Supply Chain Guru
7
Transportation OptimizationDetermine optimal multi-stop routes using detailed cost models
* Coming soon!
© 2012 LLamasoft, Inc. All Rights Reserved
Network Optimization vs. Vehicle Route Optimization
9
Network OptimizationDesign supply chain network using point-to-point lanes and simplified cost models
Vehicle Route OptimizationDetermine optimal routes for inbound and outbound shipment consolidation
© 2012 LLamasoft, Inc. All Rights Reserved
Mission of Transportation Guru
10
• Technically sound vehicle routing program• Extensive what-if scenario capabilities• Extension of network design into much needed
analyses within the same model structure• Single software platform integrating multiple
components of network and transportation system design
What it is
• A Transportation Management System (TMS)
What it is not
Transportation Design Questions
How should I consolidate shipments to build multi-stop routes?
Should we ship direct from the vendor or go through the DC?
How much savings will I see if I optimize my baseline existing routes?
Are there backhaul opportunities?
How do my routes change with low, average, and high volume shipment levels throughout the year?
Are there network synergies? Opportunities to consolidate transportation systems among business units?
How do route costs compare to LTL and parcel costs?
Should we consider a 3PL in addition to our private fleet?
How do I balance my shipments across a weekly schedule?
What is my allocated route cost by shipment?
How do I balance my facility costs versus transportation costs?
How do I balance my drivers workloads?
© 2012 LLamasoft, Inc. All Rights Reserved
Transportation Guru Data Flows
12
Shipments
Transportation Assets
Asset Availability
Sites
Invalid Shipments
Delivered Shipments
Unroutable Shipments
Route Summary
Stop Details
Inputs (Required) Outputs
Business Hours
* Valid Schedules
Inputs (Optional)
* Periodic VRP Only
VehicleRoute
Planning
Relationship Constraints
Transit Override
Rate
Segments
© 2012 LLamasoft, Inc. All Rights Reserved
Example VRP Parameters and Constraints
Shipments• Delivery and pickup time windows• Priority• Fixed and variable loading/unloading
time• Business hours• Road distance & transit time
calculations via PC*Miler, ESRI, Bing
Assets• Capacity: Weight, Cube, Units• Second compartment capacity• DOT Hours of Service• Max stops, distance, time, waiting
time per route• Max distance between stops• Round trip or one-way
Rates• Per distance, stop charges, fuel
surcharges, min charge, discounts, driver hourly, service unit cost
• Step functions: banded mileage, first stop free
• Location based rates: origin, last destination, farthest destination
• Compare LTL/Parcel rates – SMC3 RateWare XL, FedEx, UPS integration
Relationship Constraints• Prevent products from shipping
together• Force products on certain assets• Prevent assets at certain locations• Prevent certain shipments being
combined• Force certain assets with lift gate to
locations
© 2012 LLamasoft, Inc. All Rights Reserved
Transportation Guru Software Demonstration
© 2012 LLamasoft, Inc. All Rights Reserved
Algorithm Overviews
© 2012 LLamasoft, Inc. All Rights Reserved
Standard Inbound or Outbound
• Consolidation of pickups or deliveries for multiple suppliers or customers into cohesive routes
What can the Standard VRP solve?
• Identify shipment consolidation opportunities to reduce transportation costs by creating multi-stop vehicle routesWhat are the benefits?
Utilizing Standard VRP Optimization There are many ways to apply standard VRP optimization technology. Here
are just a few examples:
Instead of running LTL lanes, multi-stop vehicle routes can be run to reduce overall costs
Optimize existing baseline routes to identify better shipment consolidation and route sequences
Create high, average, and low volume routes to address seasonality shipment volume shifts
Adjust transportation constraints to identify how route structure changes
Determine how Department of Transportation (DOT) regulation changes affect route structure
© 2012 LLamasoft, Inc. All Rights Reserved
Periodic Vehicle Route Optimization
• Scheduling optimization on top of standard VRP to identify how frequent and when to deliver or pickup on multi-stop routes
What can the Periodic VRP solve?
• Determine schedule for multi-stop vehicle routes to minimize costs while adhering to scheduling requirementsWhat are the benefits?
Utilizing Periodic VRP Optimization There are many ways to apply periodic VRP optimization
technology. Here are just a few examples:
Identify frequency of deliveries or pickups balancing contract requirements and transportation costs
Determine delivery or pickup schedule for all locations while considering transportation system constraints
Balance shipment schedule throughout the week
© 2012 LLamasoft, Inc. All Rights Reserved
Continuous Moves Backhaul Optimization
• Identify the most efficient inbound pick-ups following the last delivery of an outbound route
What can the Backhaul VRP solve?
• Reduce the overall drive time required and generate significant cost savingsWhat are the benefits?
Utilizing Backhaul Optimization There are many ways to apply backhaul optimization technology. Here are
just a few examples:
Retailers can pick-up returns from stores following deliveries and bring them back to the DC
Following deliveries to retail stores, trucks can pick up materials from suppliers and bring to warehouse
3PL or carriers can make deliveries and then fulfill pick-up requests on the way back
Direct store delivery trucks can pick up empties or expired goods following store deliveries
© 2012 LLamasoft, Inc. All Rights Reserved
Continuous Moves Interleaved Shipments Optimization
• Interleaved pick-ups and drop-offs within cohesive routesWhat can the Continuous Moves Interleaved VRP solve?
• Create multi-stop routes that include pickups and deliveries interleaved throughout route to minimize costsWhat are the benefits?
Utilizing Continuous Moves Interleaved VRP Optimization
There are many ways to apply Interleaved VRP optimization technology. Here are just a few examples:
Retailers can create routes that move product between stores
Warehouses can transition inventory to other facilities with inter-facility routes
New product and returns can be considered on one route
3PL’s can consider delivery and pickup requests during a single route
© 2012 LLamasoft, Inc. All Rights Reserved
Asset Planning Optimization
• Balance optimizing fleet size while finding good routes
What can the Asset Planning VRP solve?
• Ability to identify efficient multi-stop vehicle routes while minimizing asset utilizationWhat are the benefits?
Utilizing Asset Planning VRP Optimization
There are many ways to apply Asset Planning VRP optimization technology. Here are just a few examples:
Determine optimal private fleet size Utilize optimization parameter to identify how many
assets are needed to run optimal routes Minimize private fleet and 3PL carrier assets Consider which 3PL carriers to use in addition to
private fleet
© 2012 LLamasoft, Inc. All Rights Reserved
Transportation Guru Use Cases
© 2012 LLamasoft, Inc. All Rights Reserved
Transportation Guru Customer Use Cases
• LTL vs. Truckload Shipping• 3PL vs. Dedicated• Route composition by asset• Asset Planning – Coming
Soon!
• Shipment consolidation• Delivery network synergies
Combine business units
• Weekly scheduling• Load balance across week
• Baseline vs. Optimized Routes• Direct vs. DC Shipping• Optimized routes for low, avg,
and high volume seasonality• Backhaul optimization• Continuous Moves
(simultaneous pickups and drop-offs ) – Coming soon! Route
OptimizationLoad
Balancing
Asset AnalysisLoad Consolidation
© 2012 LLamasoft, Inc. All Rights Reserved
Last Mile Delivery Company
• Identify new DC locations using a Greenfield Analysis• Run Network Optimization to identify optimal sourcing• Run Transportation Guru to find efficient routes to 45K end customers
for 45k individual shipmentsGoal
• Identified 37 key strategic distribution center locations• Resulted in efficient multi-stop vehicle routes• Found balance in minimizing facility costs and transportation costsResults
© 2012 LLamasoft, Inc. All Rights Reserved
Large Petroleum Company
• Identify new location to hire field service rep to service oil pipelines• Reassign oil pipeline servicing locations to each service rep• Balance workload of reps and minimize overtime payGoal
• Identified three new locations to hire service reps and service routes• Utilize step functions to minimize overtime hours• Balanced servicing location assignments among reps while
maintaining balanced workload Results
© 2012 LLamasoft, Inc. All Rights Reserved
>$20B Large U.S. Grocery Wholesaler
• Model DOT hours, prevent comingling of competitor loads, etc.• Analyze seasonality variances in demand week profiles• Model existing baseline route structure vs. optimized scenarioGoal
• Peak demand better addressed using carriers than dedicated fleet• Optimizing routes results in significant savings & reduced empty miles• Went to market with optimized transportation network structureResults
© 2012 LLamasoft, Inc. All Rights Reserved
Tanzania Medicine Delivery
• Model specialized asset requirements for rainy vs dry season• Identify load consolidation and multi-stop vehicle routes• Utilize viable road network to model routes in remote areas of
TanzaniaGoal
• Identified consolidated vehicle routes that address seasonality variability
• Client used results from model to actually run routesResults