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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