ORTEC Inventory Routing

Transcription

1 ORTEC Inventory Routing Huub Vankan (Product Manager)

2 Agenda Why ORTEC IR? What is ORTEC IR? What does ORTEC IR? Where to apply ORTEC IR? Where is ORTEC IR now?

3 ORTEC IR Why?

4 Trends in industries Increased Supply Chain Collaboration Merger and Acquisition ICT as an enabler Low Cost and Low CO2 Solutions -> Optimizing transport is a Win-Win Increase Vendor Managed Inventory (VMI) and Value-Added-Logistics (VAL) activities Improves customer intimacy

5 Collaborative Vendor Managed Inventory Definition: A means of optimizing Supply Chain performance in which the supplier is responsible for maintaining the customer s inventory levels. The supplier has access to the customer s inventory data and is responsible for generating replenishment orders Recently, AMR Research indicated that the global economic downturn and the need for improved inventory visibility and efficiency has led to a recent resurgence in vendor managed inventory (VMI) programs

6 Planning Decisions Decisions: 1. When to deliver a customer? 2. How much to deliver a customer? 3. Which delivery routes to use? 4. Which depots to source from & on what routes? 5. How to execute plan most efficiently? Multi Day Horizon: Decisions made today impact what has to be done beyond the planning period

7 Easy? We have 1 depot and 4 customers Each customer has 1 tank UNLEADED We have 1 truck with capacity Solution 1: Most obvious strategy 2 trip per day Total distance 420 D Customer Tank Capacity Daily Usage Daily Delivery Trip 1: Volume 4000 Distance 210 Trip 2: Volume 3500 Distance 210 example: [Bell et al. 1983]

8 Easy? example: [Bell et al. 1983] We have 1 depot and 4 customers Each customer has 1 tank UNLEADED We have 1 truck with capacity Solution 2: A better strategy 3 trips in 2 days Total distance 760 per day 380 (Solution 1 total distance was 420 per day) Customer Tank Capacity Daily Usage Day 1 Day The second strategy gives a reduction of 10% in distance Multi-day planning can significantly save transportation costs! D Trip 1: Volume 5000 Distance 210 Trip 3: Volume 5000 Distance 340 Trip 2: Volume 5000 Distance 210 example: [Bell et al. 1983]

9 ORTEC IR What is it?

10 Real-time dispatching & visibility Actions: Plan now for now Combine inbound and outbound planning Dispatch communications with drivers Accommodate last minute order changes Accommodate unplanned events (e.g. breakdowns) Integrate with onboard GPS / Board computer Planned km/costs vs. actual km/costs

11 Inventory information Stock level info Delivery times Truck sizes

12 Secondary Distribution Optimization Depot Gas Customer Plan is sent to Truck OVC Deliveries / Cancellations 1. Readings 2. Deliveries 3. Sales Routes Unplanned orders are optimized unto routes Updates Displays alerts Makes proposals Orders Automatically generated Manual entry Passed from ERP

13 ORTEC IR What does it?

14 OIR Demand calculation

15 Demand calculation Taking into account: Historical usage (levels, deliveries) Special days Usage periods Seasonal patterns

16 OIR Order generation

17 Order generation: basics explained Capacity Maximum Stock Usage Order Volume Safety Stock Bottom Stock TIME Next Visit (x days)

18 Order generation Taking into account: Calculated demands Delivery windows Multiple products Truck sizes

19 ORTEC IR Planning

20 Planning Taking into account: OTD restrictions Delivery windows Compartments Axle weights Contaminations Congestion patterns

21 Order sizing time dependent Capacity Maximum Stock Forecasted Order Volume Volume: Depends on moment of delivery, later delivery = more volume Usage Safety Stock Bottom Stock Length Delivery Window Safety Stock TIME

22 Use additional orders Must go May go Attractiveness Bonus Now Plan window TIME

23 Usage of planned and realized volumes Planned/actual volume differs from ordered volume Planned volume is used for order calculation of next orders

24 ORTEC IR Where to apply?

25 Current footprint

26 Other Industries

27 ORTEC IR Where are we now?

28 ORTEC IR - availabilty Product launch Pilots Other industries

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