Effectively Market Your Business Using Electronic Maps Part 3. GIS in LOGISTICS University of Redlands 4-21-07 - PowerPoint PPT Presentation

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Effectively Market Your Business Using Electronic Maps Part 3. GIS in LOGISTICS University of Redlands 4-21-07

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Part 3. GIS in LOGISTICS University of Redlands 4-21-07 Avijit Sarkar Tutorial supported by U.S. SBA Grant No. SBAHQ-06-1-0046. Logistics Logistics Refers to the ... – PowerPoint PPT presentation

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Title: Effectively Market Your Business Using Electronic Maps Part 3. GIS in LOGISTICS University of Redlands 4-21-07


1
Effectively Market Your Business Using Electronic
MapsPart 3. GIS in LOGISTICSUniversity of
Redlands4-21-07
  • Avijit Sarkar

Tutorial supported by U.S. SBA Grant No.
SBAHQ-06-1-0046.
2
Logistics
  • Logistics
  • Refers to the movement of goods and materials
    within a facility
  • Includes incoming and outgoing shipments of goods
    and materials, and movement within a facility

3
Logistics and GIS (1)
  • Role of GIS in loGIStics
  • can help companies save on operating expenses
  • Routing
  • Scheduling
  • Tracking
  • Tracing or navigation

4
Logistics and GIS (2)
  • What is the best route for my delivery trucks?
  • How should I schedule my deliveries?
  • What mobile units do I have available?
  • What is the best way to optimize my territory?
  • Where is the best site for delivery hubs?
  • How can I optimize my fleet to meet service goals
    and minimize costs?

5
GIS Logistics Solutions
  • Geographic coverage zone(s).
  • Regional service approaches.
  • Customer locations and service agreements in
    place, unique equipment in place.
  • Customer time windows.
  • Work order/Job types and skill level required.
  • Vehicle types and special characteristics
  • Employee type and skill level.
  • Governing work rules (enterprise, union, DOT,
    etc.).
  • Time and distance inside the geographic matrix.

6
LoGIStics Application 1 Apex Office Supply
  • Apex Office Supply
  • small office supply company based in Vinton, Iowa
  • serves approximately 300K people in E central IA
  • 1,500 active customers in two major cities,
    Waterloo and Cedar Rapids
  • delivery radius of approximately 50 miles
  • five ever-changing routes
  • average of 200 deliveries a day
  • Problems
  • using a GPS to track vehicles
  • drivers felt they were being constantly watched
  • data was not real time
  • downloaded when the trucks came back to the
    office.
  • If there was a question, such as why a driver
    spent more than a normal amount of time at one
    location, the question could not be asked until
    the next day, and the tone of the conversation
    was often confrontational.

7
LoGIStics Application 1 Apex Office Supply
  • Goals
  • Better manage people and other resources.
  • Deliver products on time to customers.
  • Load trucks more efficiently.
  • Support specialized delivery jobs.
  • Ensure safety of drivers.
  • Solution
  • Used ESRI ArcLogistics Route
  • Routes deliveries overnight
  • Then prints invoices and driving instructions
  • Next morning, drivers pick up the invoices that
    are organized by order of delivery
  • Improves the efficiency of loading the trucks.
  • Results
  • Fuel cost savings 4.3
  • Labor savings 18
  • Drive-time savings 7.4
  • Managed change by gaining trust of drivers

8
LoGIStics Application 2Major Retailer
  • Sears
  • Fleet of 13500 delivery and service vehicles
  • Largest home-delivery service of furniture and
    appliances
  • 4 million deliveries a year of 21000 unique items
  • 46 routing offices serving 70 of the US
    population
  • Problems
  • Very few same day deliveries/services
  • Reduced customer satisfaction
  • Operational costs too high

9
LoGIStics Application 2Major Retailer
  • Objectives
  • Provide same day service
  • Improve customer satisfaction
  • Reduce operational costs
  • Consolidate delivery operations
  • Plan consistent routes
  • Reduce operational costs
  • Complex optimization problem VRPTW
  • Solved in a GIS-aided logistics framework
  • Results
  • Reduced driving time by 6
  • Increased the number of service orders each
    technician completed per day by 3
  • Reduced overtime by 15
  • Achieved annual savings of 9 million
  • Consolidate routing offices, going from 46 to 22

10
LoGIStics Application 2Major Retailer
11
Your Business and Logistics
  • Do you employ logistics in your business, either
    directly or indirectly?
  • Any experience with 3PL?
  • After the initial discussion, do you think you
    can employ GIS in any domain of your business,
    especially logistics?

12
Web-based Logistics Solution
  • Web-based application specializes in the
    management of complex fleet logistics
  • Leverages a fully enabled Java/J2EE database
    solution.
  • It fits within your enterprise IT strategy
  • Allows you to manage a continually changing
    customer and operational environment
  • Can communicate in real time (mobile, GPS) from
    driver to dispatcher.

13
MapInfo ROI Calculator
14
Advantages of GIS in Logistics
  • Provides framework to integrate demand modeling
    and logistics functionality
  • Models are much more accurate
  • Network distances and travel times are based on
    the actual shape of the road network and a
    correct representation of highway interchanges
  • Also, with networks you can specify complex road
    attributes such as truck exclusions, delays at
    intersections, one-way streets, and construction
    zones
  • Entire modeling process is more efficient
  • Data preparation greatly facilitated
  • Database and visualization capabilities catch
    errors before they cause problems.

15
Supply Chain Management
  • Supply Chain the sequence of organizations -
    their facilities, functions, and activities -
    that are involved in producing and delivering a
    product or service.

Sometimes referred to as value chains
16
Facilities
  • Warehouses
  • Factories
  • Processing centers
  • Distribution centers
  • Retail outlets
  • Offices

17
Functions and Activities
  • Forecasting
  • Purchasing
  • Inventory management
  • Information management
  • Quality assurance
  • Scheduling
  • Production and delivery
  • Customer service

18
GIS in SCM (1)
  • What is my drive time from the central facility?
  • How long will it take me to reach delivery
    locations?
  • Which customers should be in separate service
    areas?
  • How can I track goods through my supply chain?
  • How can I see what is happening with my supply
    chain?

19
GIS in SCM (2)
  • GIS can be used to model supply and delivery
    points
  • GIS network tracing and analysis can then be used
    to optimize routes
  • Can create drive-time calculations from a central
    facility, such as a warehouse, store, or medical
    facility.
  • Service area polygons can be generated around
    warehouses
  • Determine the time it will take to reach the
    delivery locations
  • Which customers are contained in separate service
    area polygons

20
Questions and Takeaways
  • What are the nagging questions?
  • Write down
  • Key takeaway for you and your business
  • Specific action you can accomplish in the next
    week given what you learned

21
Acknowledgements
  • www.esri.com
  • www.mapinfo.com
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