Transportation and Logistics

Agenda

• Brief Introduction
• Challenges Faced by the industry
• BI Solution
– Facts and Dimension Tables
• Tools/Practical Session
• Q&A
 Transportation and Logistics
• Logistics is the management of the flow of goods and
services between the point of origin and the point of
consumption in order to meet the requirements of
customers.
• Logistics involves the integration of information,
transportation, inventory, warehousing, material
handling, and packaging, and occasionally security.
• Logistics is a channel of the supply chain which adds
the value of time and place utility
• Today the complexity of production logistics can be
modeled, analyzed, visualized and optimized by plant
simulation software
Reference: Stevenson
Wikipedia
 Logistics/Services
• Warehousing
• Distribution
• Transportation
– Air
– Road
– Sea
 Transportation Management At-a-Glance
• Loading • Visibility status
Planning & Unloading and
Optimization consolidation • Direct link from
system to carrier
• Transportation
Mode
• Route Planning

Tracking

• Real-time shipment Billing &

status checking
Settlement • Freight payment
• Exception management • Taxes
and notifications • Customs & Airport
Fees
 Business Pressures

Shipper Pressures… Carrier Pressures…

• Meeting customer • Meeting shortages -
expectations drivers, railcars, ocean
• Globalization supply slots, and ports
chains management • Regulation hours of
• Management initiatives to service rules
reduce errors (Lean) and security procedures
• Fuel costs

…Impact
• Transportation costs growing at an increasing rate
• Expansion, consolidation, globalization and outsourcing suppliers

Demand for:
Comprehensive Transportation and Logistics Mgmt Solutions
 Transportation Execution

Your
Company Provider

Review &
Approve Pick-up Transport Deliver
Shipment

Internet: Picked-up

Wireless: En route

Internet: Delivered

• Intermodal Support: Ocean, Air, Rail or Road

• Electronic (EDI), Internet, and wireless communication
• Share forecast, shipment status, delivery confirmation
• Dock scheduling and partner collaboration
 Transportation Mgmt System

Transportation

Meticulous Planning

Consolidate Select Book Track & Audit /

Loads Modes & Carriers Orders Trace Settle
Payments
Customer Management

Performance Customer Carrier

Satisfaction Analysis

Logistics
Financials
Solving Using BI
 Design Goals
• Supply chains through the integration of intelligent
cargo concepts into leading logistic operators
• Cargo Intelligence
– Local decision making by local agents
• Distributed computing environment
 Minimize the cost of your logistics network
without compromising service levels
$90 Optimal
$80 Number
of Warehouses
$70
Cost (millions $)

$60
Total Cost
$50 Transportation Cost
$40 Fixed Cost
Inventory Cost
$30

$20

$10

$-

0 2 4 6 8 10
Number of Warehouses
 Industry Benchmarks:
Number of Distribution Centers

Pharmaceuticals Food Companies Chemicals

Avg.
# of
WH 3 14 25
- High margin product - Low margin product
- Service not important (or - Service very important
easy to ship express) - Outbound transportation
- Inventory expensive expensive relative to inbound
relative to transportation
Sources: CLM 1999, Herbert W. Davis & Co; LogicTools
 Air Transport (Frieght)
• Daily freight consolidations
• Choice of airlines
• Same day, or overnight collections
• Customs and other country specific
procedures
• Insurance
 Sea Transport
• Container services
• Cargo logistic management
• Handling special commodities
– Textiles, raw materials, non-ferrous metals, steel
products, etc
• Bulk materials handling
• Storage and distribution.
• Terminal operation.
• Door to door freight forwarding services (Road)
 At Cargo Office
Dimension FACTS
Voyage Departure Date (FK)
Dimension
Date Dimension Leg Daparture Date(FK)
Voyage_Origin_port(FK) Port Dimension
Transport_mode Voyage_Destination_port(FK)
dimension Leg_origin_port(FK)
Leg_destination_port(FK)
Container_ID(FK)
Container dimension Commodity_ID(FK)
Consigner keyFK)
Commodity Dimension Transporter Key(FK)
Shipper_key(FK) Business Entity
Domestic_Transportater_key(FK
)
Leg Fee
Leg_Tariffs
Leg Miles
 Road Transport
• Container Management
– General containers, Thermal containers, Refrigerated containers

– Ventilated containers, Special containers, Open top containers, Flat

rack containers, Side open containers(Vehicles, Animals, Goods, etc)
• Door to door delivery and pickup
• Road tax and other government regulations
 Airline Carrier - Example
NY
LA

th
SF

o n
M
United 10

American 47

Ports
North West 30
12 Product – Sea, Air, Road
Continental

3/1 3/2 3/3 3/4 Date

 Revenue Projection - Example
Ro
ad
Ai
r

ue
Se

n
ve
a

Re
Spring 10

Transport
Autumn 47

Summer 30 Mode
Fall 12 Season

Revenue Generated
 Customs Duty - example
Ro
ad
Ai
r

E ms
Se

D AT to
a

s
Cu
Spain 10

47

Region
UK

France 30
Germany 12 Country

Customs Duty
Facts and Dimension Tables
Source: http://www.databaseanswers.org
 BI Solutions
• Oracle Warehouse Mgmt Solution
• http://www.infor.com/solutions/scm/transportation
/
– Infor SCM (Supply Chain Management) Transportation and
Logistics
• Transportation Management Software
– http://www.tmwsystems.com/
 References
Books
• The Data Warehouse Toolkit – Ralph Kimball
• Operations Management
– Russel Taylor
– Terry Hill
– Stevenson
• Operations Now
– Finch
• www.oracle.com
• www.SAP.com
• www.databaseanswers.com
Images/Photos
– http://theumeshphotography.com
– internet
Thank You

Source: internet