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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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