Load Driven Distribution Systems Do not run on a schedule Wait for the vehicle to fill Most examples are unfamiliar Retail industry -- like DCs in our case trucks don’t depart to cross docks until they are full Some manufacturing settings Auto industry finished vehicle delivery Cost of poor equipment utilization significant
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Load Driven Distribution Systems
Do not run on a scheduleWait for the vehicle to fillMost examples are unfamiliar
Retail industry -- like DCs in our casetrucks don’t depart to cross docks until they are full
Some manufacturing settingsAuto industry finished vehicle delivery
Cost of poor equipment utilization significant
Objectives
Use Cross Docks to consolidate What effect does this have on inventory What effect does this have on time to
deliveryThis pass, we will focus on inventoryLater, in the guise of “trailer fill” we
will look at service or time to market.
Use an Example
Ford’s new vehicle deliveryMotivation
Successful example Regular loads - 15 vehicles per railcar
Inventory and Ford’s New Car Distribution
Plants in the East Norfolk Atlanta Louisville St. Louis Kansas City
Ramps in the West Laurel Orillia Portland Benicia Mira Loma El Mirage Belen Denver...
% Laurel
%
%
Orillia
Portland
% Benicia
% Mira Loma% El Mirage
% Belen
% Salt Lake% Denver
%
% b
Omaha
Kansas City St. Louis
% Oklahoma City%Amarillo
%
%
Alliance
Houston
%Reisor
b
bAtlanta
bLouisville b
Norfolk
Ford Motor CompanyNorth American Vehicle Distribution
How it worked
Tri-level Rail Cars
The Loose Car Network
Car Hauler
12 Days Enroute4.3 million vehicles in North America in ‘98Estimates
2 million to western ramps $20,000 per vehicle
Average car spends 12 days in pipeline inventory or 12/365 = .033 yrs