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Effectively Market Your Effectively Market Your Business Using Electronic Business Using Electronic

MapsMaps

Part 3. GIS in LOGISTICSPart 3. GIS in LOGISTICS

University of RedlandsUniversity of Redlands4-21-074-21-07

Avijit Sarkar

Tutorial supported by U.S. SBA Grant No. SBAHQ-06-1-0046.

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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

LogisticsLogistics

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Logistics and GIS (1)Logistics and GIS (1)

Role of GIS in loGIStics can help companies save on operating expenses

Routing Scheduling Tracking Tracing or navigation

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Logistics and GIS (2)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?

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GIS Logistics SolutionsGIS 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.

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LoGIStics Application 1 LoGIStics Application 1 Apex Office Supply 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.

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LoGIStics Application 1 LoGIStics Application 1 Apex Office Supply 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

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LoGIStics Application 2LoGIStics Application 2Major RetailerMajor 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

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LoGIStics Application 2LoGIStics Application 2Major RetailerMajor 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

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LoGIStics Application 2LoGIStics Application 2Major RetailerMajor Retailer

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Your Business and LogisticsYour 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?

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Web-based Logistics SolutionWeb-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.

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MapInfo ROI CalculatorMapInfo ROI Calculator

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Advantages of GIS in LogisticsAdvantages 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.

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Supply Chain ManagementSupply 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 Sometimes referred to as value chainsvalue chains

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Warehouses Factories Processing centers Distribution centers Retail outlets Offices

FacilitiesFacilities

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Functions and ActivitiesFunctions and Activities

Forecasting Purchasing Inventory management Information management Quality assurance Scheduling Production and delivery Customer service

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GIS in SCM (1)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?

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GIS in SCM (2)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

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Questions and TakeawaysQuestions 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

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AcknowledgementsAcknowledgements

www.esri.com www.mapinfo.com