More Related Content Similar to Leveraging technology in supply chain logistica12 (20) More from OptiRisk India (6) Leveraging technology in supply chain logistica121. Logisticia ’12
18th September 2012
(A certified IBM partner)
Ph: +91 98406 18472/ +91 44 4501 8472
Email : optimize@optiriskindia.com
Web: http://www.optiriskindia.com
© 2010-12 OptiRisk India (P) Ltd, All rights reserved
Bala. Padmakumar
Director & CEO
OptiRisk India
2. 1. Introduction
2. Supply Chain Network Design
3. Transportation Planning
4. Solution Architecture
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6. Strategic
Long Term
1+ years
Supply Chain Network Design
Resource Acquisition
Tactical
Medium Term
Monthly / Quarterly
Production or Distribution Planning
Resource Allocation
Operational
Short Term
Weekly/ Daily
Transport Planning and Scheduling
Resource Scheduling
© 2010-12 OptiRisk India (P) Ltd, All rights reserved
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7. 1. Introduction
2. Supply Chain Network Design
3. Transportation Planning
4. Solution Architecture
© 2010-12 OptiRisk India (P) Ltd, All rights reserved
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8. Identifying the locations and capacity of plants and warehouses to meet the
demand, which reduces overall operating expenses from end-to-end.
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9. Demand Centers
Location
Quantity
Change over time
Costs
Labor
Materials
Facilities
Transport
Inventory
Taxes and Tariffs
Constraints
Capacity
Local Infrastructure
Input
Plant and Warehouse
Output
Numbers
Location
Capacity
Capacity change over time
Supply demand mapping
What-if Analysis
Risks
Natural Calamities
War
Oil Crisis
Exchange Rate
Regulatory Changes
Employee Relationship
© 2010-12 OptiRisk India (P) Ltd, All rights reserved
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11. : The client is one of the largest providers of ‘Building Products’
(roofing & interiors) in India.
: Due to lack of high-level supply chain visibility, plan and
policy, the company resorted to “Ad-hoc”/manual order fulfillment process from
different warehouses & plants to agencies, which caused higher overall logistics
cost (transport, warehouse, taxes)
As the demand was growing fast, the client wanted to identify new warehouse &
plant locations and their capacities to optimally meet the future demand at the
least cost. Furthermore, they needed to realign the supply linkages so as to
maximize plant capacity utilization and rationalize inventory levels across
warehouses.
The client also wanted to understand the impact of the proposed Goods & Services
Tax (GST) on the existing and proposed Supply Chain Network.
© 2010-12 OptiRisk India (P) Ltd, All rights reserved
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12. What we Delivered
OptiRisk developed SCN model
suggested reconfiguring order delivery
to reduce out-bound transportation
cost, overall taxes, and inventory level.
In addition, it suggested potential
warehouse locations, plants, and their
optimal capacity for future growth. At
the end, "what-if" analysis is done to
study the impact of proposed Goods &
Services Tax (GST) on the existing and
proposed Supply Chain Network.
Key Benefits
17% saving on out-bound
transportation cost + taxes
Reduced inventory
Reduced delivery time
Reduced capital requirement
Reduced carbon foot-print
Increased service level
Payback in a couple of months
ROI : 1: 70 times.
© 2010-12 OptiRisk India (P) Ltd, All rights reserved
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14. 1. Introduction
2. Supply Chain Network Design
3. Transportation Planning
4. Solution Architecture
© 2010-12 OptiRisk India (P) Ltd, All rights reserved
14
16. Key Questions
How many trucks to use from the set of fleet and
from which carrier?
Which shipment option to use for each order?
Which customer /vendor should be served by each truck
and in what sequence?
Are there ways to reduce cost and still maintain/ improve service level?
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17. Should the company buy (or) lease (or) rent trucks?
What-if the truck capacities are increased/decreased?
What would be the impact of fuel price change to logistics cost?
What-if alternate transportation options are used?
© 2010-12 OptiRisk India (P) Ltd, All rights reserved
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18. Software and What It Does for YOU
USE OPTIRISK / IBM SOFTWARE to get Optimized Vehicle Routes
Software used custom OR models + CPLEX solver.
Software is customized to YOUR CLIENT+BUSINESS needs.
Software helps client to achieve :
Reduced fleet travel distance / time / cost (5 to 30% saving)
Faster Customer-Response-Times (Optional)
Extra Carriage Capacity with same fleet (3 to 10% saving)
Improved Stakeholder Satisfaction Levels
Significant Planning Man-Hours Saving (70% to 90% saving)
Helps in long Term Planning
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19. On-Time Delivery
Increased Visibility
Greater visibility and control
Increased Planning Productivity
Enabled Employees
Reduced Stock-outs
Improved Service Level
Satisfied Customers
Increased Business
Optimized Delivery Routes
Ease of Use
Fewer Fleet requirements
Lesser driving distance / time.
Lower cost & Investment
Increased ROI
Visual Displays
Ready to print customized reports
Visual Performance dash boards
for KPI tracking
Payback in months
Less than six months
ROI 1: 30 to 70 times
(in 5 years)
© 2010-12 OptiRisk India (P) Ltd, All rights reserved
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21. OptiRisk Route Planner & Scheduler Studio (ORPSS)
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22. The client is one of the multinational fuel distribution
companies having wide presence in India.
The aim was to develop a automated planning
tool which would reduce total cost incurred on out-bound logistics
23%+ reduction in total out-bound delivery transport cost.
Total planning time is reduced to minutes.
Payback of investment was less than a month
Improved service level and increased customer satisfaction.
© 2010-12 OptiRisk India (P) Ltd, All rights reserved
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23. 1. Introduction
2. Supply Chain Network Design
3. Transportation Planning
4. Solution Architecture
© 2010-12 OptiRisk India (P) Ltd, All rights reserved
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24. Other RDBMS
Database DB2
Top Management
.
.
.
.
Intranet
Web Server
Firewall
External
Router
SPSS Server
(Optional)
Planning & Execution
Staffs
Optimization
Server
Dealers
Internet
External Data Server
(Optional)
Suppliers
© 2010-12 OptiRisk India (P) Ltd, All rights reserved
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25. Bala. Padmakumar
Ph: +91 98406 18472 / +91 44 4501 8472
Email: optimize@optiriskindia.com
Web: http://www.optiriskindia.com/
Asia Pacific, Africa, Australia & Middle East :
Europe & America :
No 12, Ground Floor, 25th Cross Street
Thiruvalluvar Nagar, Thiruvanmiyur,
Chennai - 600041, India.
© 2010-12 OptiRisk India (P) Ltd, All rights reserved
OptiRisk R&D House One Oxford Road,
Uxbridge Middlesex, UB9 4DA,
United Kingdom.
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Editor's Notes << Need to be changed>> Acquire, transport, produce, distribute to meet the needs of customer. << Need to be changed>> Demand - location - Quantity - change over timeRisk << on the right sodeInternationalNatural calamitiesWarOil CrisisLocalPoliticalRegulatoryEmployee relationshipDONE << Need to be changed>> << Need to be changed>>