Georgia Tech Student Projects

Size: px

Start display at page:

Download "Georgia Tech Student Projects"

Frank Clark
6 years ago
Views:

2 1. 3 rd Party S&P Domestic Network Optimization Annual Spend: $113MM Business Overview: ~5.1M shipments, 95% parcel, 5% LTL Shipping Origins: Third Party Distributors throughout US, ~ 6 major Distis and 4-5 sites ea. (hundreds of sites in total) a) For all major shipping origins, calculate the average and provide a histogram for both Parcel and LTL/HWA: I. Zone (average and histogram) II. Package Weight (shipment weight for LTL), (average and histogram) III. # pcs in shipment IV. Cycle Time (Shipment to Delivery b) Map of average and 80 th percentile CT for each major shipping origin for parcel ground c) Evaluate the air to ground optimization for S&P shipments. E.g., for customers requesting 2 nd day delivery, how often is a ground service utilized? For next day delivery? Also, what conclusions can be drawn about the air to ground optimization across major S&P distributors like Ingram Micro, Tech Data, and D&H? d) Provide a thorough analysis of the S&P networks and create an executive summary of the findings. Identify best in class network utilization across distributors, opportunities to improve freight optimization (HWA to LTL, parcel express to ground), etc. 2 Confidential 9/7/2011

3 2. Systems finished goods network optimization Annual Spend: $269MM Business Overview: 21M shipments, 95% parcel, 4% LTL/HWA, <1% TL Shipping Origins: 4 major 3PL sites, 1 Dell factory, 1 Mexico ODM, 6 Asia ODMs a) For all major shipping origins, calculate the average and provide a histogram for both Parcel and LTL/HWA: I. Zone (average and histogram) II. Package Weight (shipment weight for LTL), (average and histogram) III. # pcs in shipment IV. Cycle Time (Shipment to Delivery b) Map of average and 80 th percentile CT for each major shipping origin for parcel ground c) Evaluate the air to ground optimization for shipments. E.g., for customers requesting 2 nd day delivery, how often is a ground service utilized? For next day delivery? d) An executive summary of the analysis results. How does the network capability of the 3PL (CEVA) compare with the network of the ODM origins? Where do the biggest opportunities for improvement appear to be for Parcel? For LTL? e) What opportunity exists for LTL consolidation to larger LTL shipments, or even TL, out of Foxconn in Mexico? In Nashville? 3 Confidential 9/7/2011

4 3. Freight Spend KPIs and Metrics Annual Spend: $740MM Business Overview: (see previous slide) Shipping Origins: Everywhere and in between Freight Attributes that drive cost a. Review existing cost metrics and KPIs. b. Recommend and develop additional metrics to help identify sources of cost variation week to week by service level. (Today we have sufficient data to know that costs have changed week to week, but lack repeatable processes to identify why they changed. It s time consuming and we can t complete it as often as necessary). c. Team to work closely with Elizabeth for ongoing guidance and direction. Team needs to understand sensitivity of cost data and understand that NDA precludes them from sharing this information with other parties. Exact team deliverables will be confirmed by end of 2 nd team meeting. Primary Contact: Elizabeth Koncaba (elizabeth_koncaba@dell.com) 4 Confidential 9/7/2011

5 4. Returns Network Analysis Annual Spend: $9.5MM Business Overview: It s complicated Shipping Origins: It s complicated a) Define and document primary returns supply chains. (customers calling to schedule a pick-up and return is different process than customers who refuse delivery of original OB shipment, for example). These process differences are important because the network capability is different by process. b) Quantify returns freight spend by supply chain, by mode and carrier c) Map the cycle time of the returns supply chains. Customers do not receive refunds until product has been received at returns facility. d) For scheduled pick-up/return, evaluate the mode optimization. Be sure to consider how often we pay LTL min charges (parcel opportunity), utilization of HWA instead of LTL, etc. e) Freight Billing inspection. Determine a representative sample of shipments and evaluate the carrier invoices for returns transportation. What accessorials are charged? Are they warranted? What service levels were we charged for? Are they appropriate? f) What recommendations does the team make for improving the network optimization of returns? Are there any categories of product returns that have unique needs/considerations due to freight characteristics? 5 Confidential 9/7/2011

Best Practices for Transportation Management

Best Practices for Transportation Management A White Paper from Ozburn-Hessey Logistics www.ohlogistics.com/countonus.html or 800-401-6400 Introduction The mantra for all transportation professionals is