Retail Supply Chain Innovation: Insights from Singapore

Transcription

1 Retail Supply Chain Innovation: Insights from Singapore TLIAP Programs: Authors: Robert de Souza, Mark Goh, Narath Bhusiri, Erdem Ceven Presenter: Professor Robert de Souza Executive Director, TLI Asia Pacific & Programme Manager for Logistics in Urban Systems Initiative, A*STaR EDUCATION GT-NUS Double MSc. in Logistics & Supply Chain Management NUS MSc. in Supply Chain Management RESEARCH Collaborative Urban Logistics Program Humanitarian Logistics Program Risk Management Program Industry Research INDUSTRY OUTREACH THINK Executive THINK IT THINK Innovation THINK Logistics

2 Major retail mall clusters in Singapore Singapore s retail malls - More than 50% of Singapore s retail outlets are concentrated in the shopping malls - Retail mall clusters are the results of limited land benefiting from the common infrastructural services for the retailers in the clusters Major Challenges for Retail Malls Labour Productivity Short supply on low/semi-skilled labour. Resources are significantly underutilized. Methodologies are required to improve workforce utilization Traffic Congestion Congestion both in the malls (i.e. car parks) and on the nearby roads of cities. Delivery delays, air pollutions and affects customer satisfactions Research Objective: Investigate innovative supply chain initiatives and approaches which lead to improved resource utilization in the retail logistics, higher efficiency in in-mall operations and sustainable urban development.

3 Avg. # congestions / day Some Details & Contributions Improvements with In-Mall Operations Improvements with In-Mall Operations - The consolidated in-mall system reduces the required number of workers on each floor to achieve the acceptable congestion per day - The result shows a potential labour demand reduction of >50% Non-consolidated Consolidated # workers per floor - The result suggests that postponing the delivery as late as possible to achieve a 100% truck utilization will diminish delivery performance - The optimal postponement is 8 hours, which can improve the degree of on-timedeliveries by at least 0 % and at the same time improve truck utilization

4 Managerial Insights - Like in any rapidly growing city in Asia, the retail mall clusters in Singapore are currently facing major distribution challenges, particularly in the last-mile - To respond to these challenges, the innovative supply chain approach is inevitable. We consequently offer a simple-yet-sustainable approach, called collaborative retail supply chain - Two solutions under collaborative supply chain are tested to address the traffic congestion and labour productivity issues, by optimizing information and physical flows to the retail cluster (dynamic consolidation) and by tackling the inefficiencies of logistics in the cluster (within-mall optimization)

5 Next Step Suppliers Carriers/PL Shopping Malls Retail Shops Order Fulfillment with collection schedule, delivery schedule and delivery volume Order tracking 1 Order Delivery tracking Retail Precinct Management Visualization and analytics for freight flow Resource availability & bidding for loading docks Real-time delivery with multiobjective optimization Collection and delivery schedule and route & auction winner Multi-party loading dock coordination In-mall delivery Consolidation Loading dock availability and pricing Auction winner Resource availability 5 Delivery schedule and route In-mall carriers Heavy Traffic Optimized Route: ~ 1km Remaining Time: 0 h 5 min Bay Bay, 5 bids Level #5 Level # Level # Entrance Worker is making delivery Bay 1 bids Bay bids Bay 6 Bay 5 bids Bay #1 Consolidation Point Exit Bay #