GIS in Itella Route Optimisation Project. Juha Tolvanen Itella Posti Delivery Services and Operations

Transcription

1 GIS in Itella Route Optimisation Project Juha Tolvanen Itella Posti Delivery Services and Operations

2 Itella Corporation Track record of nearly 400 years postal industry leadership of leveraging technology Net sales MEUR Operating in 16 countries and with employees All shares owned by the state of Finland Itella Logistics Service logistics for freight, forwarding and warehousing Itella Information Outsourcing solutions for invoicing and financial management Itella Mail Communications Postal, parcel and express services Nationwide 5-day delivery service by Delivery Services and Operations Postal outlets and NetPosti Targeted marketing and CRM solutions in Russia

3 Location in Itella Recognize location information in your company Utilize location information Name Street address Zip code and City

4 Route Optimisation Project Challenges Business challenges Measure and increase delivery efficiency Proactively produce operative scenarios Obtain cost savings Operations challenges Measuring, planning and optimising Analytic modeling Reacting to changing delivery circumstances Objectivity in delivery operations Transparency and reporting

5 Route Optimisation Project Objectives Primary objectives for Route Optimisation Project Produce valid location information for route optimisation Service location data Enhanced street data Integrate RouteSmart into existing system infrastructure Customize RouteSmart for Itella specific needs Implement RouteSmart into Itella Operations Cost savings Reducing route distance Reduce number of routes Increase vehicle utilization rate Achieve even higher service reliability Secondary objective was to increase GIS competence and usage

6 Route Optimisation Project Sub-projects Project consisted of a) Service location data production, b) Street data enhancement, and c) RouteSmart integration and implementation

7 Route Optimisation Project ROI Return on investment is purely based on one-time optimisation in each delivery center throughout country Reduced route distance and time Reduced number of routes and routes more even in time

8 Route Optimisation Project Results Achieved and exceeded targeted minimum 5 % cost savings from delivery costs per delivery center Increased delivery efficiency Enabled objective and equitable compensation terms for delivery operations Achieved knowledge for route optimisation and system maintenance Excellent location information for operative and strategic modeling Project paid back itself and is still ongoing

9 Related GIS modeling with RouteSmart Operative usage Route solutions to changing volumes and resources Start point and intermediate stop modeling Transportation mode modeling Work shift flow modeling Strategic usage Service time window modeling Volume and resource change modeling Tool for modeling pricing Other uses than mail or newspaper delivery route optimisation Delivery network modeling

10 RouteSmart enabling Itella s innovation Itella s need to transform static route optimising into more dynamic route planning to meet daily volume and resource changes Optimise routes, six Create modules New set of routes from modules, five Static modules as enabler for dynamic routing Benefits in preceding processes

11 Related GIS modeling with ArcGIS Using location allocation to optimise delivery center network based on service locations and distance

12 In conclusion Location information is ubiquitous in postal context Distinguish and utilize spatial information for operational and strategic modeling Delivery operations are a large portion of operating budget Route optimisation and complementing GIS-tools enables Itella to manage activities and reduce costs

13 Thank you for Your attention!