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Ramco APO Case Study MCL Dispatcher Solution Multi Objective Model: Time & Cost Optimization
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Overall Business Objective & Need for Optimal
Solution
Ensure higher customer satisfaction by improved time delivery, faster service
Sustain dealer relationships by easy to use WEB & mobile order placement
Faster credit clearance with dealer through automated processes
Better control on logistics costs, thus better pricing and market position
Enhance the sales & distribution process by automated business functions like
Order allocation
Automatic Inventory replenishment
Truck allocation
Real Time Monitoring & Tracking of Trucks
Monitoring the order execution
Dispatch advises
Packer sequencing and truck loading
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Goal Improve Market Share & Better Realization (currently good , still more) Objective Faster Customer Service, Optimized Logistics Cost, Optimized Truck Loading, Optimal Stock & Real time Truck Execution (Level 1 @ supply Point, Level 2 GPS) Strategy Within India wherever / whenever Dealer Orders are booked across India , it has to be delivered within 24 hours. As soon Order is booked & authorized then within 5 minutes an optimal order dispatch plan has to be suggested by our system Major Tasks Selection of Optimal supply within the capacity & operational constraints Within 12 hours of order booked, physical truck allocation should have done at Supply point (Multi Agent) LOGISTICS cost Calculation (freight, any secondary activity cost) other than product cost Automated Replenishment of Stocks @ Sales Depot / Hubs based on Reorder level / Projections Sequencing of trucks at loading stations Dynamic Rescheduling due to truck non availability @ supply point
Major Tasks, Objectives & Strategy
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Cost optimized distribution logistics with minimization of logistics costs including
Primary logistics cost
Secondary logistics cost
Material handling costs
Production costs
Additional costs for special boundaries
300+ distribution locations across India
10 Production Plants
184 Sales depots
52 Transshipment Points
59 Rake stations
900+ delivery areas
200,000+ Delivery Routes across India
50,000+ movements & deliveries / months
Average fleet of 1,400+ trucks executed per day
Global view on inventory management in each node
Problem Complexity - Defined
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RAMCO
Logistics Optimization Ramco APO Model
6
MCL - ERP
Item Quantity Delivery Address Due Date
Cost
Freight
Time
SALES PROFITABILITY
Optimal Freight Selection
Truck Scheduling Rake Despatch
Optimal warehouse selection Maximizing Material Realization Optimal material handling cost Finite Capacity Placement
Shortest Route On time Delivery Visibility of delivery
time Sale Order
Creation Pack Slip
Generation Factory/Sales
Depot Invoice Generation
Logistics Cost
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Plant/Packing Plant /Grinding Unit
Material Type
Monthly Production Volume
Lower and Upper bounds of Stock
Available Stock
Work Calendar
Shutdown events
Plant Constraints
Cost to delivery Area
Sales Depot
Monthly Demand
Lower and Upper bounds of Stock
Opening Stock at Month start
Work Calendar
Shutdown events
Depot Constraints
Cost to delivery Area
Cost from plant
Transshipment/Work Calendar
Work Calendar
Depot Constraints
Cost to delivery Area
Cost from plant
Ramco APO Model Resource Objects
Freight
Freight Type
Capacity
Supply Point, Delivery Area
Cost per tone
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Logistics Optimization Ramco APO Model
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Logistics Optimization Ramco APO Model
9 9
Sales Depot
Sales Depot 3
Plant warehouse
Customer
grade, quantity Due Date
Material request
Order quantity
Shipment Start Date
Order Delivery Plan
Delivery Date Shipment Location Delivery Location Truck type
Order Price
Rake Plan
Truck type
Cost
Stock Level
Calendar
Distance
Warehouse Status
Time
Rake
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APO Solution - Architecture
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MCL-APO PROCESS FLOW
12
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Selected constraints handled through policy configuration & parameterization
Allocation based on minimum costs
Allocation based on minimum delivery time
Maximum dispatch target for all sales depot
Minimum dispatch target set for all grinding units, packing plants & factories
Minimum order size for plant allocation (5 tons)
Maximum order size for sales depot allocation (15 tons)
Production & distribution capacity limits, varying per day
Handle plant shutdown events & dispatch holidays (adhoc & planned)
Priority rules for supply point - delivery area combination
District/market restrictions for supply points
Preferences rules for supply sources of customers
Carrier selection & truck availability check for order execution allocation
Preferential allocation rule for Govt. & Inter State Customers
Material Type based allocation rules
Handle dealer based preferences for own truck movements at secondary Hubs.
APO Model Time & Cost basis
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Logistics Cost Calculation
15
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Logistics Cost Calculation
16
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New Order Allocation
17
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Thank you
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