TRANSPORTATION SPEND OPTIMIZATION - A LOGISTICS USER PERSPECTIVE www.ptvgroup.com Matthias Hormuth Director Solution Management Logistics
PTV GROUP OUR VISION WE PLAN AND OPTIMISE EVERYTHING THAT MOVES PEOPLE AND GOODS WORLDWIDE.
PTV GROUP MARKET AND VERTICAL INDUSTRIES Logistic Service Providers Retail/ Wholesale Industries Transport Field force Software vendors and integrators
PTV GROUP LOGISTICS SERVICES AND SOLUTIONS Automotive Engineering Chemicals Food & beverage Electronics manufacturing Steel & concrete Construction Synthetic material FTL, LTL and CEP Services Professional route planning & transport cost calculation Route optimization & vehicle scheduling Pick-up and Delivery optimization Territory Planning/Master route planning Field force optimization
PTV GROUP FACTS & FIGURES >100 MIO. >20 >1 MIO. >2.500 >800 ~40 40.000 >130 REVENUE SUBSIDIARIES COMMERCIAL VEHICLES PLANNED CITIES EMPLOYEES WORLWIDE YEARS EXPERIENCE TONS DAILY CO 2 SAVED COUNTRIES PTV Headquarters (HQ) Germany Karlsruhe (DE) PTV North America (HQ) Arlington (VA, US) PTV North America Portland (OR, US) PTV América Latina Mexico City (MX) PTV Brasil São Paulo (BR) PTV/DPS UK Birmingham (HQ) & London (GB) PTV UK Birmingham (GB) PTV Loxane France Logistics Paris-Cergy (FR) PTV France Traffic Strasbourg & Lyon (FR) PTV Benelux Utrecht (NL) & Ieper (BE) PTV Nordics Gothenburg (SWE) PTV Austria Vienna (AT) PTV Italia Logistica Perugia & Bologna (IT) PTV Sistema Traffic Rome (IT) PTV Africa Johannesburg (ZA) PTV Middle East Dubai (AE) PTV China Shanghai (CN) PTV Asia Pacific Singapore (SG), Sydney (AU) PTV India New Delhi (IN) - in preparation PTV Russia Moscow (RU) - in preparation PTV Silicon Valley San Francisco (CA, US) - in preparation PTV Spain Barcelona (ES) - in preparation
PTV GROUP PORSCHE SE
TRANSPORT LOGISTICS TODAY S REALITY Cost Cost - Cost
TRANSPORT LOGISTICS TODAY S REALITY Cost Cost - Cost
TRANSPORT LOGISTICS TODAY S REALITY Cost in UAE https://www.guide2dubai.com/living/expatlife/dubai-salary-and-pay-scale
TRANSPORT LOGISTICS TODAY S REALITY Cost in UAE
TRANSPORT LOGISTICS MAIN DRIVERS FOR COST OPTIMIZATION Selection of transportation modes and carriers
TRANSPORT LOGISTICS MAIN DRIVERS FOR COST OPTIMIZATION Location and network planning
TRANSPORT LOGISTICS MAIN DRIVERS FOR COST OPTIMIZATION Use of vehicles and resources
TRANSPORT LOGISTICS MAIN DRIVERS FOR COST OPTIMIZATION Last mile and urban distribution
HOW PLANNING AND OPTIMIZATION HELPS quote: count the miles, don't ship air and water and consolidate, consolidate, consolidate.
HOW PLANNING AND OPTIMIZATION HELPS Areas of optimization of transportation cost : Strategic/tactical level Market Analysis Territory Planning Location Determination
HOW PLANNING AND OPTIMIZATION HELPS Areas of optimization of transportation cost: Operational planning Multi-modal Routing Pickup & Delivery Vehicle Routing & Scheduling Multi-depot Planning Load Space Optimization
HOW PLANNING AND OPTIMIZATION HELPS Areas of optimization of transportation cost: Ad hoc and during execution Appointment Planning ETA Calculation Driver guidance
HOW PLANNING AND OPTIMIZATION HELPS Very simple example from practise (sequence optimisation): 2 stops 2 options: 3 stops 6 options: A B A B A B C A B C A B C B B B A C A C A C
HOW PLANNING AND OPTIMIZATION HELPS Turns out to be complex: Calculate all permutations for: 20 stops: 3.6 seconds 30 stops: 8.2 million years *1: Wikipedia: Since its introduction in June 2013, China's Tianhe-2 supercomputer is currently the fastest in the world at 33.86 petaflops (PFLOPS), or 33.86 quadrillions of FLOPS. https://en.wikipedia.org/wiki/supercomputer Fastest computer in the world; 33.86 Petaflops Towns Possible Round Trips Secs Mins Hrs Days Years 1 0 2 1 2.9533E-17 5E-19 8E-21 3E-22 9E-25 3 2 5.9067E-17 1E-18 2E-20 7E-22 2E-24 4 6 1.772E-16 3E-18 5E-20 2E-21 6E-24 5 24 7.088E-16 1E-17 2E-19 8E-21 2E-23 6 120 3.544E-15 6E-17 1E-18 4E-20 1E-22 7 720 2.1264E-14 4E-16 6E-18 2E-19 7E-22 8 5,040 1.4885E-13 2E-15 4E-17 2E-18 5E-21 9 40,320 1.1908E-12 2E-14 3E-16 1E-17 4E-20 10 362,880 1.0717E-11 2E-13 3E-15 1E-16 3E-19 11 3,628,800 1.0717E-10 2E-12 3E-14 1E-15 3E-18 12 39,916,800 1.1789E-09 2E-11 3E-13 1E-14 4E-17 13 479,001,600 1.4147E-08 2E-10 4E-12 2E-13 4E-16 14 6,227,020,800 1.839E-07 3E-09 5E-11 2E-12 6E-15 15 87,178,291,200 0.000003 4E-08 7E-10 3E-11 8E-14 16 1,307,674,368,000 0.000039 6E-07 1E-08 4E-10 1E-12 17 20,922,789,888,000 0.000618 ###### 2E-07 7E-09 2E-11 18 355,687,428,096,000 0.010505 ###### ##### 1E-07 3E-10 19 6,402,373,705,728,000 0.189084 ###### ##### ##### 6E-09 20 121,645,100,408,832,000 3.6 ###### ##### ##### 1E-07 21 2,432,902,008,176,640,000 71.9 1.2 ##### ##### 0.000002 22 51,090,942,171,709,400,000 1,509 25.1 0.4 ##### 0.000048 23 1,124,000,727,777,610,000,000 33,196 553.3 9.2 0.4 0.001053 24 25,852,016,738,885,000,000,000 763,497 ###### 212.1 8.8 0.024210 25 620,448,401,733,239,000,000,000 18,323,934 ###### 5,090 212 0.6 26 15,511,210,043,331,000,000,000,000 458,098,347 ###### ##### 5,302 14.5 27 403,291,461,126,606,000,000,000,000 ########## ###### ##### ##### 378 28 10,888,869,450,418,400,000,000,000,000 ########## ###### ##### ##### 10,197 29 304,888,344,611,714,000,000,000,000,000 ########## ###### ##### ##### 285,527 30 8,841,761,993,739,700,000,000,000,000,000 ########## ###### ##### ##### 8,280,285
HOW PLANNING AND OPTIMIZATION HELPS Vehicle scheduling and route optimisation is complex! 1 depot 4 vehicles (different capacity) 52 orders (different quantities) No further restrictions Manual plan
HOW PLANNING AND OPTIMIZATION HELPS Restrictions make planning processes even more complex Time frames customer opening hours availability of vehicles driver s hours of service Quantity of vehicles Load capacity Loading patterns Flexible capacity Qualifications required equipment driver s skills Routing truck restrictions heterogeneous vehicle fleets manual changes to road network
HOW PLANNING AND OPTIMIZATION HELPS Automated planning systems can help you save time planning time driving time save costs fuel / emissions operation of vehicles personnel $ provide better customer service meet your promises act faster and more precise achieve more output with the same input achieve the same output with less input or THE GOOD NEWS
HOW PLANNING AND OPTIMIZATION HELPS Tour planning is complex 1 depot 4 vehicles (different capacity) 52 orders (different quantities) No further restrictions 12% less KM s Manual plan Sequence optimisation Automatic plan 5% less KM s
ROUTE OPTIMIZATION & VEHICLE SCHEDULING Automatic scheduling based on assets, orders, business rules etc. Mixed transport planning (delivery, pick-up, A to B) Support by using suggestion function Take truck attributes into account (height, width etc.)
TELEMATICS INTEGRATION Direct connection to the drivers and the vehicles Independent information on the delivery status in real time Up-to-date overview of all trips and vehicles Enable a quick response in case of deviations
TRUCK ROUTE SEQUENCE Automatic route calculation Identification of the relevant costs and data Truck routing Cost calculation
FREIGHT CALCULATION Individual freight tariffs for every carrier Carrier cost comparison (internal and external comparison) Costs Freight Costs Freight Comparison Carrier Name of Carrier $ 425.18 $ 333.15 $ 92.03 100 SC Express $ 471.01 $ 357.38 $ 113.63 200 SC Courier $ 567.67 $ 580.38 -$ 12.71 100 SC Express $ 549.89 $ 492.56 $ 57.33 100 SC Express $ 189.97 $ 189.00 $ 0.97 200 SC Courier $ 273.63 $ 234.00 $ 39.63 200 SC Courier $ 491.40 $ 409.50 $ 81.90 200 SC Courier $ 415.50 $ 420.00 -$ 4.50 200 SC Courier
ROUTE OPTIMIZATION & VEHICLE SCHEDULING BENEFITS AT A GLANCE Increase efficiency and reduce costs Save time and improve customer service Ease the scheduling workload of your planning department Create compliant and safe driving plans Create visibility over your logistics process
CASE STUDY Gerolsteiner Brunnen GmbH & Co. KG is the best-selling bottled water brand in the German market as well as the largest exporter of mineral water, with main markets in Japan and the USA. Bildmotiv Together with PTV Gerolsteiner have achieved a major milestone; daily scheduling has been reduced by two hours and the utilisation of their own fleet has significantly improved.
CASE STUDY In order to improve supply chain efficiency while maintaining customer satisfaction and assuring group safety standards, Air Liquide European Platform launched the CROSS project (Cylinder Routing Optimizer Software Solution). Bildmotiv As part of the project, PTV combines its technologies to cover the multiple needs of Air Liquide, world leader in gases for industry, health and the environment.
CASE STUDY Rockwool, a manufacturer of insulation materials, schedules its freight forwarders' vehicles. Bildmotiv The goal was to centralise scheduling and truck loading for deliveries throughout Europe, in order to save time, maximise profits and enhance customer service. 15 years ago, two employees scheduled roughly 30 loads a day; today one employee schedules up to 130 loads by using PTV Smartour.
CASE STUDY Fresenius Kabi AG is a globally active health company that offers medicines and medical products for infusion, transfusion and clinical nutrition. Even the planning process can be implemented considerably faster and more conveniently than with previous programs. The reason: master Bildmotiv data management and route planning now both take place in a single system. PTV Smartour calculates both the Fresenius Kabi delivery notes and the return orders into optimal trips. All of the customers requirements are taken into account.
CASE STUDY The commercial success of a logistics service provider depends in part on its ability to carry out transport orders whilst observing individual customer requirements, and capacity and time limitations. DHL Solutions GmbH PTV software to meet increasing customer demands whilst simultaneously fulfilling company-specific requirements. Bildmotiv As a result, DHL managed to reduce the number of trips from 18 to 16 or even 14, which helps them to save a lot of kilometres. A positive side effect of the solution is that the company's 24 drivers are able to reduce their overtime.
CASE STUDY The Lekkerland group requires its logistics services to work perfectly and deliver 100 percent customer satisfaction. With a comprehensive network of 36 logistics centres, Lekkerland is able to ensure reliable and flexible deliveries to its customers. It has 1,028 trucks and vans operating in Bildmotiv ten European countries. PTV's software has met Lekkerland's Expectations. When they introduced PTV Smartour they expected to be able to reduce the number of kilometres covered by around 8 per cent across the entire fleet.
ROUTE OPTIMIZATION & VEHICLE SCHEDULING FROM THE USERS POINT OF VIEW
USE YOUR RESOURCES IN AN OPTIMUM WAY WITH PTV SOLUTIONS! www.ptvgroup.com