BSI STEEL CASE STUDY DRM ROUTE COMPLIANCE & ROADSHOW ROUTE OPTIMISATION

Transcription

1 BSI STEEL CASE STUDY DRM ROUTE COMPLIANCE & ROADSHOW ROUTE OPTIMISATION DELIVERING INNOVATIVE SUPPLY CHAIN CONSULTING AND TECHNOLOGY SOLUTIONS TO EMERGING MARKETS ACROSS THE GLOBE

2 Quick Facts Location South Africa, Gauteng Industry Steel distribution and processing and manufacturing Service Area Gauteng, Free state, Limpopo, North West and Mpumalanga Vehicles 17 Core Fleet vehicles Solution Daily Route Manager & Roadshow route optimisation Results Reduced overtime on the road and in the warehouse Better control over vehicle to route assignments Planned vs actual route adherence discrepancies identify problem areas Mileage reduced and vehicle utilization increased

3 Synopsis The complexities of effectively distributing a product like steel considerably increase due to the multiple combinations of products with varying dimensions and volumes required in a single delivery, which is compounded when considering multiple deliveries in a specific time window with a certain amount and type of vehicle available to complete deliveries. By optimising routes and the visibility thereof, together with automating the planning function, BSi was able to identify and manage potential issues with deliveries through DRM as well as reduce mileage and increase vehicle utilisation, maximising resource utilisation both on site and on the road with optimised routes from Roadshow. Company BSi steel is a steel product distributer with a large Gauteng delivery footprint and also has numerous satellite branches in South Africa and 8 others on the African continent. The company's primary product range consists of mild (carbon) steel in all its different forms and distribution thereof. Trading is divided into general merchants, cash and carry, bulk sales, African exports, and processing. The Midvaal branch processes its own steel and is the largest distribution centre for BSI in the country doing on average 458 tonnes per day.

4 Challenges BSi Steel used a more manual approach in planning for the following day s deliveries. Invoices were printed and then manually added in heaps to trip sheets creating duplication of effort and wasted time. Sorting mistakes also occurred from time to time, duplicating efforts. Their order download system (AX) was not used correctly resulting in invoices, appearing on the incorrect dispatch date. The order download file was also not in the desired format to import into Roadshow resulting in the planner reverting back to manual process. BSi required a tool to measure their planned vs actual route deviations and give them visibility of their routes in relation to others. SKU level planning also needed to be implemented because of vehicle -to-product constraints and trucks needed to be loaded according the sequence of drops.

5 The Solution DRM, a route management system, was implemented to manage deviances in the plan. Roadshow, a route optimising tool, was implemented to create least cost routing for the business. Planning is done by a dedicated VSC resource from the Midvaal depot. Order download issues were resolved and time saved in daily routing. Through DRM and Roadshow BSi Steel is able to accurately measure route compliance and incorrect execution of the plan. Comprehensive monthly meetings with BSi management identify areas for improvement.

6 The Implementation Regular meetings setup and full time VSC support in go-live weeks. Problem areas identified and addressed. Macro developed to convert AX order download into the correct format for importing orders into Roadshow. Regular touching base with BSI management to report on what was achieved so far and the way forward. Monthly KPI meetings to establish current trends in business and give indications of where improvements can be made.

7 The Results Better visibility in routing. SKU level planning. Planned vs Actual route adherence reporting. Scheduled utilization remains constant at 104%. 95% Service level. 3.6 stops per route. Average time per route at 8.5hrs, reduction in overtime. 13% of routes return for second loads. Sub 1000kg customers identified and charged higher rate per drop.