Title: Effectively Market Your Business Using Electronic Maps Part 3. GIS in LOGISTICS University of Redlands 4-21-07
1Effectively Market Your Business Using Electronic
MapsPart 3. GIS in LOGISTICSUniversity of
Redlands4-21-07
Tutorial supported by U.S. SBA Grant No.
SBAHQ-06-1-0046.
2Logistics
- 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
3Logistics and GIS (1)
- Role of GIS in loGIStics
- can help companies save on operating expenses
- Routing
- Scheduling
- Tracking
- Tracing or navigation
4Logistics 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?
5GIS 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.
6LoGIStics 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.
7LoGIStics 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
8LoGIStics 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
9LoGIStics 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
10LoGIStics Application 2Major Retailer
11Your 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?
12Web-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.
13MapInfo ROI Calculator
14Advantages 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.
15Supply 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
16Facilities
- Warehouses
- Factories
- Processing centers
- Distribution centers
- Retail outlets
- Offices
17Functions and Activities
- Forecasting
- Purchasing
- Inventory management
- Information management
- Quality assurance
- Scheduling
- Production and delivery
- Customer service
18GIS 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?
19GIS 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
20Questions 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
21Acknowledgements
- www.esri.com
- www.mapinfo.com