transport & logistics how scheduling software can deliver ... · infrastructure constraints...

Transport & Logistics

Joost Bekker – Business Development Director PTV Group

How scheduling software can deliver market advantage

Introduction

How can vehicle scheduling and route optimisation software help you to remain competitive?

Joost Bekker PTV GroupPhone: +61 2 9698 1292 Suite 46, 61-89 Buckingham StreetMob: +61 424 552 378 Surry Hills 2010 NSWEmail: joost.bekker@ptvgroup.com Australia

Australian Logistics Industry Challenges

Increasing cost pressure Changing customer demand

– Increasing on-line shopping– Higher expectations customer service

Aging workforce and difficulty attracting quality labour A changing regulatory landscape with increasing compliance

workloads Infrastructure constraints continue to tighten with negative impact

on productivity

Source: Ferrier Hodgson – 2014 Transport and Logistics insights

Logistics Industry Challenges

The two greatest challenges must be dealt with through:

Standardisation

Digitalisation and automation of work processes

Source: BVL - Complexity and cooperation move the logistics 2014

THE PRINCIPLE OF VEHICLE SCHEDULING AND ROUTE OPTIMISATION

• Vehicle scheduling and route optimisation.

10:00-11:00hrs AM

Vehicle scheduling and route optimisation is complex!

Delivery planning & route optimisation is complex

Travelling Salesman Problem (sequence optimisation):

2 stops 2 options: 3 stops 6 options:

A

B

C A

B

C A

B

C

A

B

C A

B

C A

B

C

A B A B

Delivery planning & route optimisation is complex

A

B C

D A

B C

D A

B C

DA

B C

D A

B C

D A

B C

D A

B C

D

A

B C

D A

B C

D A

B C

D A

B C

D

A

B C

D

Travelling Salesman Problem (sequence optimisation):

4 stops 24 options:

A

B C

D A

B C

D A

B C

DA

B C

D

A

B C

D A

B C

D A

B C

D A

B C

D A

B C

D A

B C

D A

B C

DA

B C

D

Delivery planning & route optimisation is complex

Fastest computer in the world: 93 Petaflops*1

93,000,000,000,000,000 calculations per second.

Calculate all permutations for:

15 stops:

30 stops:

14 microseconds

(0.000014 seconds)

90 million years!

*1: Wikipedia: As of June 2016, the fastest supercomputer in the world is the Sunway TaihuLight, in mainland China, with a Linpack benchmark of 93 PFLOPS or 93 quadrillions of FLOPS.https://en.wikipedia.org/wiki/Supercomputer

Towns Possible Round TripsPossible Round Trips Secs Mins Hrs Days Years

1 1 1.07527E-17 2E-19 3E-21 1E-22 3E-25

2 2 2.15054E-17 0.0 0.0 2E-22 0.000000

3 6 6.45161E-17 0.0 0.0 7E-22 0.000000

4 24 2.58065E-16 0.0 0.0 3E-21 0.000000

5 120 1.29032E-15 0.0 0.0 1E-20 0.000000

6 720 7.74194E-15 0.0 0.0 9E-20 0.000000

7 5,040 5.41935E-14 0.0 0.0 6E-19 0.000000

8 40,320 4.33548E-13 0.0 0.0 5E-18 0.000000

9 362,880 3.90194E-12 0.0 0.0 5E-17 0.000000

10 3,628,800 3.90194E-11 0.0 0.0 5E-16 0.000000

11 39,916,800 4.29213E-10 0.0 0.0 5E-15 0.000000

12 479,001,600 5.15055E-09 0.0 0.0 6E-14 0.000000

13 6,227,020,800 6.69572E-08 0.0 0.0 8E-13 0.000000

14 87,178,291,200 0.000001 0.0 0.0 1E-11 0.000000

15 1,307,674,368,000 0.000014 0.0 0.0 2E-10 0.000000

16 20,922,789,888,000 0.000225 0.0 0.0 3E-09 0.000000

17 355,687,428,096,000 0.003825 0.0 0.0 4E-08 0.000000

18 6,402,373,705,728,000 0.068843 0.0 0.0 ##### 0.000000

19 121,645,100,408,832,000 1.3 0.0 0.0 ##### 0.000000

20 2,432,902,008,176,640,000 26.2 0.4 0.0 ##### 0.000001

21 51,090,942,171,709,400,000 549 9.2 0.2 ##### 0.000017

22 1,124,000,727,777,610,000,000 12,086 201.4 3.4 0.1 0.000383

23 25,852,016,738,885,000,000,000 277,979 ###### 77.2 3.2 0.008815

24 620,448,401,733,239,000,000,000 6,671,488 ###### 1,853.2 77 0.2

25 15,511,210,043,331,000,000,000,000 166,787,205 ###### 46,329.8 1,930 5

26 403,291,461,126,606,000,000,000,000 4,336,467,324 ###### ####### ##### 138

27 10,888,869,450,418,400,000,000,000,000 ########### ###### ####### ##### 3,713

28 304,888,344,611,714,000,000,000,000,000 ########### ###### ####### ##### 103,956

29 8,841,761,993,739,700,000,000,000,000,000 ########### ###### ####### ##### 3,014,736

30 265,252,859,812,191,000,000,000,000,000,000 ########### ###### ####### ##### 90,442,075

Fastest computer in the world; 93 Petaflops

Delivery planning & route optimisation is complex

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– speed profiles– congestion– road works, flooding

A NEW GENERATION OF

VEHICLE SCHEDULING AND

ROUTE OPTIMISATION SOFTWARE ARRIVED

Use case Metropolitan Distribution Company

Metropolitan Distribution Company

- Home delivery of fruit & veg

- High density delivery

- Delivery time windows

PTV Smartour Quick Check

The Quick Check covered establishing the business rules around MDC’s planning, defining the data requirements and creating an As-Is simulation as a baseline.

Based on the same business rules and customer data, optimise the schedule (To-Be simulation).

Metropolitan Distribution Company

BASE LINE DATAThe quick scan has been carried out based on data from MDC’s depot in Sydney.The order data included the sequence of the runs based on the recorded arrival times, the stop time is based on the registered stop time.

Rules around opening times have been applied, all customers had an allocated timeslot.

Date # Orders # Stops #Routes

Monday 7 November 2016 628 628 9

BASE LINE DATA

Metropolitan Distribution Company

Step 1 – Base line simulationPlanning all orders based on Route Number and sequence by delivery time. Base line to verify the parameter settings of the speed profiles and loading / unloading times.

# Orders # Stops # Routes #KM #Hrs

628 628 9 1474 83:24

Monday, 7 November 2016

Delivery schedule As Is

BASE LINE SIMULATION

Metropolitan Distribution Company

BASE LINE SIMULATION

SEQUENCE OPTIMISATION

Step 1b – Base line simulation – sequence optimisationIn this step a sequence optimisation was performed on the routes as executed, no changes to order allocation. Deliver time windows have been taken into account.

# Orders # Stops # Routes #KM #Hrs

As Is 628 628 9 1474 83:24

AsIsSeqOpt 628 628 9 1386 81:28

Diff 0 0 0 -88 -1:56

% 0% -6% -2%

Monday, 7 November 2016

ETA CALCULATION TO INFORM CUSTOMERS

Use Cases Overview

Metropolitan Distribution Company

TERRITORY OPTIMISATION

Metropolitan Distribution Company

BASE LINE SIMULATION

SEQUENCE OPTIMISATION

Step2– Delivery planning – Territory & route optimisation.

Planning with the territory optimisation algorithms delivers further savings and more compact runs.

# Orders # Stops # Routes #KM #Hrs

As Is 628 628 9 1474 83:24

Optimised 628 628 9 1333 80:43

Diff 0 0 0 -141 -2:41

% 0% -10% -3%

Monday, 7 November 2016

Deliver Savings with route optimisation

Ensure compliance by taking into account all restrictions

Maximumise customer service with reliable route optimisation

Conclusion

Questions

Thank you!