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Logistic Route Rationalization and Optimization




                   30th March, 2012


                   Private & Confidential
Routes Types & Transportation
             Branches
                            Origin                             Destination        Branches



             Branches
                          Origin
                                                                    Destination   Branches
Consignor
                                          Hub                                                Consignee

                           Origin                                   Destination   Branches
             Branches

            Pickup                                                                Delivery

                        Hub & Spoke – Method of Transportation



     National Routes – Operated between hub center to hub center and controlled by one
     of the hub
     Feeder Routes – are between branch to hub and controlled by branch




                                          Private & Confidential
Route Designing & Planning

 Route Planning Key Activities
 •Route Survey – Outcome of this activity is to find out exact distance, existing route
 contour, road conditions, timings of RTO/ Check Posts, Railway Crossing Information and
 branch information
 •Route Schedule- After knowing the route, scheduling is done as per
      •Average speed is 35 km per hour
      •Intermediate branch touching/check post/ traffic jam timings
      •Rest to the driver at the destination site is 8 hours
      •The gap between incoming and outgoing should be 6 hours
      •Calculation of Idle time
 •Routing Plan- As per originating and destination hub along with transshipment hub
 possibilities are considered.
 •Vehicle Planning- How many vehicles are needed to be deployed ona route and their
 type as per loading pattern at different hubs along the route.




                                         Private & Confidential
Visual 3PL Decision Support System
                                                  “Analyze & Optimize
                                                  3PL Operations with
                                                  enhanced visibility”

                                                   Consignee Site
                                                   Origin Site
                                                   Receipt Site
                                                   Hub Site
                                                   Cross Docking Site
                                                   Load Site
                                                   Discharge Site
                                                   Delivery Site
                                                   Consignor Site



•Trade Lane Analysis      •Network Optimization     •Vendor Analysis
•Load Consolidation       •Freight Optimization     •Exception handling
•Sales Force Planning     •Route Optimization
                        Private & Confidential
Indicative Application of Visual 3PL DSS


•   Shippers rationalization: vendor analysis - ABC Analysis, contract
    renegotiations, route allocation
•   Hub service utilization: CFS vs. CY analysis
•   Distribution network cost analysis: optimization, restructuring of cost centres
•   Freight optimization: optimal Selection of vendors trade-lane wise to have
    minimum freight cost
•   Geographical territory wise analysis
•   Sales force planning & optimization: in a particular territory, in what
    sequence should pick up happens to have min cost and service levels are met
•   Cubic meter monitoring, tracking and planning in a territory
•   Container wise profiling of corridors and profitability analysis - Container
    type and size




                                    Private & Confidential
Logistic Route Rationalization and Optimization



                   Thank You




                                            You can get in touch with us at:
                                            sales@olinks.co.in
                                            022-41232770




                   Private & Confidential

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Logistic route rationalization and optimization

  • 1. Logistic Route Rationalization and Optimization 30th March, 2012 Private & Confidential
  • 2. Routes Types & Transportation Branches Origin Destination Branches Branches Origin Destination Branches Consignor Hub Consignee Origin Destination Branches Branches Pickup Delivery Hub & Spoke – Method of Transportation National Routes – Operated between hub center to hub center and controlled by one of the hub Feeder Routes – are between branch to hub and controlled by branch Private & Confidential
  • 3. Route Designing & Planning Route Planning Key Activities •Route Survey – Outcome of this activity is to find out exact distance, existing route contour, road conditions, timings of RTO/ Check Posts, Railway Crossing Information and branch information •Route Schedule- After knowing the route, scheduling is done as per •Average speed is 35 km per hour •Intermediate branch touching/check post/ traffic jam timings •Rest to the driver at the destination site is 8 hours •The gap between incoming and outgoing should be 6 hours •Calculation of Idle time •Routing Plan- As per originating and destination hub along with transshipment hub possibilities are considered. •Vehicle Planning- How many vehicles are needed to be deployed ona route and their type as per loading pattern at different hubs along the route. Private & Confidential
  • 4. Visual 3PL Decision Support System “Analyze & Optimize 3PL Operations with enhanced visibility”  Consignee Site  Origin Site  Receipt Site  Hub Site  Cross Docking Site  Load Site  Discharge Site  Delivery Site  Consignor Site •Trade Lane Analysis •Network Optimization •Vendor Analysis •Load Consolidation •Freight Optimization •Exception handling •Sales Force Planning •Route Optimization Private & Confidential
  • 5. Indicative Application of Visual 3PL DSS • Shippers rationalization: vendor analysis - ABC Analysis, contract renegotiations, route allocation • Hub service utilization: CFS vs. CY analysis • Distribution network cost analysis: optimization, restructuring of cost centres • Freight optimization: optimal Selection of vendors trade-lane wise to have minimum freight cost • Geographical territory wise analysis • Sales force planning & optimization: in a particular territory, in what sequence should pick up happens to have min cost and service levels are met • Cubic meter monitoring, tracking and planning in a territory • Container wise profiling of corridors and profitability analysis - Container type and size Private & Confidential
  • 6. Logistic Route Rationalization and Optimization Thank You You can get in touch with us at: sales@olinks.co.in 022-41232770 Private & Confidential