Dynamic Last-Mile-Routing as Business-Value-Application for Galileo
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1 Dynamic Last-Mile-Routing as Business-Value-Application for Galileo Gregor Sandhaus* Matthias Klumpp European Navigation Conference Vienna, Austria
2 Agenda 1. Introduction To Last-Mile Scheduling 2. GNSS Tracking and Agent-Based Systems 3. Dynamic Last-Mile Scheduling Application 4. Conclusions Sandhaus / Klumpp: Dynamic Last-Mile-Routing as Business-Value-Application for Galileo 2
3 1. Introduction Last-mile tour planning is a major business task in logistics networks due to (i) complexity, (ii) time restriction and (iii) direct customer contact Destination A 4. Volatility Assessment (4.) Overall Volatility Assessment and Green Bullwhip Effect An increasing volatility in existing supply chains amplifying bullwhip effects due to green logistics measures can be expected and termed a green bullwhip effect. Last-Mile Tours Most analyzed green logistics instruments have a high probability in leading to increased Destination volatility and therefore amplifying the general bullwhip effect. Destination C Tour 2 Tour 1 Depot e.g. Duisburg q Destination B Main Haul(s) Apr-13 Destination D upstream (supplier) midstream (manufacturer) Other Source Depots Green logistics and supply chain volatility downstream (end customer) t Source Depot e.g. Vienna Sandhaus / Klumpp: Dynamic Last-Mile-Routing as Business-Value-Application for Galileo 3
4 2. GNSS Tracking GNSS systems provide continous tracking of shipments in the whole supply chain and allow for dynamic planning of operations GPS tracking system GPS/ GALILEO Cooporative production and transport planning Supplier Manufacturer Retailer LSP LSP Sandhaus / Klumpp: Dynamic Last-Mile-Routing as Business-Value-Application for Galileo 4
5 2. Agent-Based Systems Characteristics of Agent Systems 1. Adaptability 2. Autonomy 3. Collaboration 4. Knowledgeable 5. Mobility 6. Persistence Sandhaus / Klumpp: Dynamic Last-Mile-Routing as Business-Value-Application for Galileo 5
6 AGENT-BASED LAST MILE DYNAMIC SCHEDULING SYSTEM Galileo Scheduling Manager Route 920 LATE! ALERT! Route 925 Tracking Agent Planning Agent OK Route 926
7 3. Case Study Data Groupage freight network with main haul and last mile Example data set of August ,384 inbound shipments for a depot on 23 working days Total of 1,104 incoming trucks, total weight of all shipments: 7,014,516 kg Out of these 96 trucks were delayed by more than 10 minutes in arrival, totaling for 8.7 % The maximum delay was even 13 hours for one truck About half of the days with only 1 to 4 delayed trucks and the other half of the working days with 5 to 10 delayed trucks No single working day without any delayed truck and only three days with only one delayed truck Sandhaus / Klumpp: Dynamic Last-Mile-Routing as Business-Value-Application for Galileo 7
8 4. Conclusions A very important business problem (last-mile scheduling) can be solved by the combination of GNSS Galileo real-time tracking data and agent-based systems in order to overcome the information and decision problem with tight time restrictions (1-2 h). The generally estimated business value for a agent-based dynamic scheduling system in groupage freight depots amounts to about Euro per month in reduced costs or increased earnings due to delivery on time and with heads-up information Sandhaus / Klumpp: Dynamic Last-Mile-Routing as Business-Value-Application for Galileo 8
9 Dynamic Last-Mile-Routing as Business-Value-Application for Galileo Thank you for your attention. Prof. Dr. Gregor Sandhaus Phone FOM ild Essen, Germany
10 2. GNSS Galileo Application Galileo would be even able to bring about a logistics revolution by increased accuracy of shipment addresses, replacing postal addresses and introducing geo-coordinates as shipment information (value: less search time and effort on large sites). CHEMPARK Leverkusen, Germany Sandhaus / Klumpp: Dynamic Last-Mile-Routing as Business-Value-Application for Galileo 10
11 3. Dynamic Last-Mile Scheduling Galileo would contribute to dynamic last-mile scheduling in combination with agent-based systems by solving the time constraints in re-scheduling in the early ours of a delivery day Sandhaus / Klumpp: Dynamic Last-Mile-Routing as Business-Value-Application for Galileo 11
12 3. Dynamic Last-Mile Scheduling Case study testing for GNSS applications (ild GPS.LAB) GPRS Tower Shipment Unit ild GPS.LAB Sandhaus / Klumpp: Dynamic Last-Mile-Routing as Business-Value-Application for Galileo 12
13 3. Case Study Data Delay of one hour on 3 rd of August 2012, 20 shipments Sandhaus / Klumpp: Dynamic Last-Mile-Routing as Business-Value-Application for Galileo 13
14 4. Conclusions A very important business problem (last-mile scheduling) can be solved by the combination of GNSS Galileo real-time tracking data and agent-based systems in order to overcome the information and decision problem with tight time restrictions (1-2 h). The generally estimated business value for a agent-based dynamic scheduling system in groupage freight depots amounts to about Euro per month in reduced costs or increased earnings due to delivery on time and with heads-up information. Further advantages may be feasible if complete process traditions and systems (address) are changed towards the GNSS/Galileo navigation semantics (geo-coordinates) Sandhaus / Klumpp: Dynamic Last-Mile-Routing as Business-Value-Application for Galileo 14
15 Gregor Sandhaus - CV Professor for applied business and technology science at hochschule fuer oekonomy & management university of applied science head of software engineering at the institute for logistics & service management in Essen IT focus on software development, database management, artificial intelligence business focus und logistics, supply chain, purchase to pay Sandhaus / Klumpp: Dynamic Last-Mile-Routing as Business-Value-Application for Galileo 15
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