Case Study : White Goods

- Case Study on White Goods -

Contract Logistics Pvt. Ltd.

Plot No. 619, Rangpuri; Mahipalpur Extension

New Delhi – 110 037

[email protected]

Case Study :White Goods

· Client: A Consumer Durable and Electronics Major

· Nature of Operation: Warehousing and Secondary Distribution for State

o 50,000sft warehouse

o Secondary Distribution to more than 130 accounts across Gujarat State with less than 48hrs delivery commitment

o More than 25,000units of Consumer Durables and Electronics and 50,000 units of HHP dispatched per month from the warehouses

o Stringent KPI and process compliance norms

Transportation Modeling Procedure

• Map Of Relevant Regions Is Studied

• Destinations are classified into Local & UpCountry depending on location and distance from the source city.

• In case of Local Destinations, Destinations are further classified into Milk Runs.

• Milk Run has cities that follow a particular route. Quantity and Volume Of Goods delivered in each Milk Run are determined using Excel Function

• Distances in the Milk Run are tabulated

Transportation Modeling Procedure

• The Number of Shipments is determined in determined from the Dates and Purchase Orders of Shipments.

• Shipment Size is determined from the Volume Delivered and Total Number of Shipments.

• Total Throughput is obtained from Quantity and Volume Column

• The Number of Vehicles is determined from the Throughput (Quantity & Volume) , Shipment Size.

Transportation Modeling

• Determine the transportation network across all the nodes in the supply chain

• CAPS is a great tool to model transportation network while excel based cost minimization can also be applied (example explained below)

• Transportation Model typically consists of a Network structure in the following stages : o Factory to Primary Distribution Centero Primary Distribution Center to Secondary Distribution Centero Secondary Distribution Center to Customer

• The first step is obtaining the Shipment History from the client. This involves collecting data at MDC & RDC Levels. o Goods Inbound Datao Goods Outbound Data

Transportation Modeling

• Total Volume & Total Quantity are determined with Analysis From Excel

• The Latitude & Longitude of Cities are determined using the Geocoding Sites.

• Distances Between Cities Can Be Computed with the following formula: 3956.67*ACOS(COS(RADIANS(<lat2>))*COS(RADIANS(<lat1>)) *COS(RADIANS(<long1>-<long2>))+SIN(RADIANS(<lat2>)) *SIN(RADIANS(<lat1>)))

• Each customer is allocated to the nearest DC with minimal transportation cost; all product and route constraints are considered

• Similar process is adopted for each node pairs in the multi echelon transportation model

Primary Movement: Factory To MDC Template

Secondary Movement: MDC To RDC Template

Trucking Freight Calculator

• Trucking Worksheet was developed for different types of Trucks & Trailers of different Volume and Weight Carrying Capacity

• Trucking Worksheet has Purchase Price of Vehicle, Purchase Price of Container and Estimated Useful Life of Vehicle.

• For each Vehicle Type, different costs such as Diesel Cost, Tyre Cost, Repairs & Maintenance, Road Tax, Permit Tax, Goods Tax, Insurance, Salary, Overheads, Oil Cost.

• Fixed Costs & Variable Costs are Tabulated.

• Trucking Worksheet is an invaluable tool in determining the Type & Number of Vehicles for different loads