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4
Engineering Design Symposium, University of Virginia,
Charlottesville, VA, USA, April 24, 2009
Abstract— TMO Global Logistics currently provides cargo from Germany to the central United States. TMO would
tracking services that rely on clients calling the TMO office to then hire the marine, trucking, or rail carriers, obtain the
request estimated time of arrivals (ETAs) and TMO employees required permits, and supervise the cargo’s customs
calling shipping dispatchers to find current cargo locations and processing. During this process, the customer is very
relaying experience-based ETAs to the client. For TMO, anxious about the condition of his valuable cargo, but he is
minimizing the resources (dollars, man-hours, data storage more concerned with its arrival time at its destination. The
space, and bandwidth) spent accepting ETA requests,
client wants to know when he will need resources at the
calculating ETAs, and relaying results can free those resources
for use on other tasks. At the same time, if TMO can provide delivery point to unload and utilize the cargo. When a
its clients with more accurate ETAs retrievable in less time, request for information is received, a TMO employee
relative to competitors, the firm stands to gain significant contacts the carrier currently in possession of the cargo to
market share as a result of these attractive services. obtain its real-time location. The TMO employee then
The team considered issues such as accuracy of the data, ease makes an educated guess, based on his or her experience,
of implementation, resource usage, and client privacy of the and provides the client with an Estimated Time of Arrival
solution. The recommended solution analyzes a particular (ETA). This process consumes TMO personnel resources
route’s historical shipment data and segments each trip into and often results in inaccurate ETAs because TMO must
legs that might be used, in conjunction with legs from other
rely on the carrier to report the location of the shipment.
shipments also stored for future historical analysis, to
reconstruct hypothetical trips and calculate a more accurate TMO engaged a Systems Engineering team from the
ETA than simply using initial and terminal points would University of Virginia to develop a solution to the problem.
permit. To further increase the reliability of the calculation, The company hoped that the team could decrease or
legs with similar start- and endpoints (within a critical radius eliminate the daily time spent by TMO agents on cargo
of the actual leg’s start- and/or endpoints) are also used in the tracking. TMO also wanted greater client satisfaction to
calculation. retain and improve market share, and it decided that TMO
The project team anticipates integrating this ETA approach clients needed a more accurate, reliable ETA. This paper
into TMO Global Logistics’ cargo tracking system. The focuses on the complex problem of generating an accurate
revamped system includes a TMO client interface that maps
ETA for TMO’s clients. The solution proposed here is a
the client’s cargo for added customer satisfaction and a TMO
administrator interface to initialize, and if necessary, manually significant improvement on the existing ETA calculation
adjust shipments. process’s accuracy, and it demands less from TMO
employees.
The system needs to meet a number of requirements in Over time, the HistoricalLeg table grows until the
order to achieve the goals described in the introduction. An commonly traveled path from a given point A to point B is
improved ETA calculation would increase the resolution of littered with start points for HistoricalLeg rows (Fig. 1). If a
the prediction—perhaps the likely hour of arrival, rather than TMO client requests an ETA on in-transit cargo traveling
the day—and would increase the accuracy of the prediction. currently at point P in between the A and B points, the
A more accurate prediction would have a smaller error, or algorithm will query the HistoricalLeg table for the n rows
the difference between the predicted ETA and the actual with the same mode of transportation, the same next transfer
arrival time. These improvements would gratify existing point B, and the same current location P. The system will
TMO clients and hopefully attract new ones. then use the mean of the elapsed time for each row ti to
The ETA calculation should be automated and require calculate the estimated time from the current location to B,
very little input or time commitment from a TMO employee. tPB.
While a completely autonomous system might not be n
plausible at this time, the hour a day TMO agents currently ∑ t
i =1 i
spend on ETA calculation must be reduced.
tPB = (1)
n
The ETA calculation must be flexible and robust. It needs If necessary, it will also calculate the estimated time on
to operate across all modes of transportation, and it should the remaining j complete legs (from B to C, and so on, until
be able to self-correct. TMO’s clients will not accept large destination Z) as well as the estimated time at the remaining
inaccuracies, yet routes can change, cargo can transit on any j transfer points
€ between P and D.
ACKNOWLEDGMENT
The team thanks the employees of TMO Global Logistics
for their support. Joseph “J.C.” Toe and James Holland
were especially helpful as the team struggled with problem
comprehension and needed data to analyze.
REFERENCES
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