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Network RoutingRajiv JegannathanLatha Sreenivasan

Veenandhari Ponkam

Network Routing

• A Network is an association of locations and regions that representthe possible flows of orders from a source to a destination.

• Network Routing functionality reduces the shipping cost andmaximizes the consolidation opportunities by routing orders fromdifferent origins through network.

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Agenda

• Business Scenario• Configuration• Key Considerations• Validation and Troubleshooting• Challenges• Performance• Benefits

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Scenario - Cost saving through Network

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Cross docks located atLouisville, KYDallas, TXDenver, CO

Network RoutesNR1_SOUTHEAST_WESTNR3_SOUTH_WEST

OR1: Charlotte, NC to Los Angeles, CA (4000 LB)OR2: Jackson, MS to  Sunnyvale, CA (30000 LB)OR3: Austin, TX to Los Angeles, CA (10500 LB)

NR1: South – Dallas ‐ Denver – West NR3: Southeast – Louisville – Denver – West Cross dock locationsPickup and delivery locations

Denver

Dallas

Louisville

Los Angeles

Sunnyvale

Austin

Jackson

Charlotte

Location

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Representative locations, Source and Destination locations are setup with Location role as ‘SHIPFROM/SHIPTO’

Region and Representative Location

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Region and Representative location

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West

SouthSoutheast

Midwest1

East

Denver

Representative locationsEast – Albany, NYSouth East – Atlanta, GASouth – Austin, TXMidwest1 – Indianapolis, INMidwest2 – Denver, COWest – Sacramento, CA

Sacramento

Austin

Atlanta

Indianapolis

AlbanyMidwest2

Rate Offering

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Rate Record

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Itinerary1 – Southeast to West

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Network1– Southeast to West

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Network Detail

Network1 Leg detail - Southeast to West

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Southeast region to Louisville Cross dock

Louisville Cross dock to Denver Cross dock

Denver Cross dock to West region

Network1 Leg detail - Southeast to West

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Southeast region to Louisville Cross dock

Louisville Cross dock to Denver Cross dock

Denver Cross dock to West region

Itinerary2 – South to West

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Network2 – South to West

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Network Detail

Network2 Leg detail - South to West

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South region to Dallas Cross dock

Dallas Cross dock to Denver Cross dock

Denver Cross dock to West Region

Network2 Leg detail - South to West

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South region to Dallas Cross dock

Dallas Cross dock to Denver Cross dock

Denver Cross dock to West Region

Logistics Guide

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Logistics Guide – Inquiry & Results

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Planning Parameter and Logic configurationPlanning Parameter• Network Routing Config ID - NR_LOGIC_CONFIG• Order Routing method – Network Routing

Logic configuration• Optimize Cost – True (Container Optimization)• Multistop cost saving check type – Perform cost saving after each iteration (Multistop)

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Logic configuration – Network Routing

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Routing Constraint

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Scenario - Cost saving through Network

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Cross docks located atLouisville, KYDallas, TXDenver, CO

Network RoutesNR1_SOUTHEAST_WESTNR3_SOUTH_WEST

OR1: Charlotte, NC to Los Angeles, CA (4000 LB)OR2: Jackson, MS to  Sunnyvale, CA (30000 LB)OR3: Austin, TX to Los Angeles, CA (10500 LB)

NR1: South – Dallas ‐ Denver – West NR3: Southeast – Louisville – Denver – West Cross dock locationsPickup and delivery locations

Denver

Dallas

Louisville

Los Angeles

Sunnyvale

Austin

Jackson

Charlotte

Bulk Plan-Order Release to Order movement

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Bulk Plan - Order movements to Shipments

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Shipment creation

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Shipment detail

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Direct Vs Network cost comparison

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Charlotte, NC to Los Angeles, CA (4000 LB) = 889.28 USDJackson, MS to Sunnyvale, CA (30000 LB) = 3942.13 USDAustin, TX to Los Angeles, CA (10500 LB)= 1229.29 USD

Total costs (Direct) = 6060.7 USDTotal costs (through Network Routing) = 3921.82 USD

Key Considerations - Know your freight

• Collect historic shipment data• Analyze shipment volume, cost and transit time• Identify key lanes that require

– carrier commitment– equipment capacity– ground schedules– dock scheduling / appointments

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Key Considerations - Order management

• Order data accuracy (packaged item, THU, Stack ability, Splittableetc)

• Order dates – Pickup Vs Delivery• Routing constraints• Sequencing factor

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Key Considerations - Define Business rules

• Define Direct Vs Cross dock rule – Key factors to consider:– Cost (E.g. Inventory carrying cost, Cross dock fee Vs Total

freight cost)– Transit time (meets customer requested delivery)

• Define number of cross docks, Pickup and delivery regions,Representative location, handling time, calendar for different originsand destinations

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Validation and Troubleshooting

• Allocate cost and Calculate best direct cost• RIQ and Network Rate and Route Inquiry• Show Network Routing Option • Enable Diagnostics, Planning parameters for Routing solver

input/output XML • Log file (Enable Network Routing, Network Routing detail)

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Allocated Cost

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Create an Operational report to validate cost savings –Allocated cost Vs Order Direct cost

Total Allocated cost for Order 20150712‐001 = 583.9 USD 

Total Allocated cost for Order 20150712‐002 = 1810.61 USD 

Total Allocated cost for Order 20150712‐003 = 1527.31 USD 

Calculate Best Direct cost

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Network Rate and Route Inquiry

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Network Rate and Route Inquiry

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Show Network Routing Option

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Show Network Routing Option

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Input, Output XMLs

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Challenges

• Date management– Order release Pickup/Delivery dates– Order movement Pickup/Delivery dates– Date emphasis (SHIP, DELV or BOTH)

• Timing– Order release creation– Order movement creation– Bulk plan Schedule

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Performance• Use constraints where possible

– Itinerary/itinerary profile on order (E.g. If equipment utilization is at 90% for TL,Ship direct)

– Routing constraints– Leg consolidation group– Rate service profile on network leg– Service provider, mode and equipment group profile

• Be cognizant with planning parameter/logic configuration values(fewexamples below)

– Max distance between pickups/deliveries, Out of route distance– Max path length

Its our take – real time scenarios could vary for every client based on complexity of scenario, planning parameter/logic configuration setups, number of orders, infrastructure etc***

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Benefits

• Quicker delivery• Maximum Utilization• Reduced inventory costs• Transportation cost savings

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Questions?

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OTM Sales  ‐ North America

Sukumar Srivatsan

Srivatsan.Sukumar@cognizant.com

Mobile: +1 503‐706‐7272

OTM Competency Head & Global Sales Support

Hemalatha Vema

Hemalatha.Vema@cognizant.com

Mobile: +91‐9989642171

OTM Global Delivery Head 

Senthilnathan Loganathan

Senthilnathan.Loganathan@cognizant.com

Mobile:+91‐9962515453

Contact us