Network Routing

Network Routing
Rajiv Jegannathan
Latha Sreenivasan
Veenandhari Ponkam
Network Routing
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A Network is an association of locations and regions that represent
the possible flows of orders from a source to a destination.
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Network Routing functionality reduces the shipping cost and
maximizes the consolidation opportunities by routing orders from
different origins through network.
Agenda
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Business Scenario
Configuration
Key Considerations
Validation and Troubleshooting
Challenges
Performance
Benefits
Scenario - Cost saving through Network
Cross docks located at
Louisville, KY
Dallas, TX
Denver, CO
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)
Sunnyvale
Louisville
Denver
Charlotte
Los Angeles
Dallas
Austin
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Jackson
Network Routes
NR1_SOUTHEAST_WEST
NR3_SOUTH_WEST
NR1: South – Dallas ‐ Denver – West NR3: Southeast – Louisville – Denver – West Cross dock locations
Pickup and delivery locations
Location
Representative locations, Source and Destination locations are setup with Location role as ‘SHIPFROM/SHIPTO’
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Region and Representative Location
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Region and Representative location
East
Midwest2
West
Sacramento
Albany
Midwest1
Indianapolis
Denver
Atlanta
South
Austin
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Southeast
Representative locations
East – Albany, NY
South East – Atlanta, GA
South – Austin, TX
Midwest1 – Indianapolis, IN
Midwest2 – Denver, CO
West – Sacramento, CA
Rate Offering
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Rate Record
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Itinerary1 – Southeast to West
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Network1– Southeast to West
Network Detail
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Network1 Leg detail - Southeast to West
Southeast region to Louisville Cross dock
Louisville Cross dock to Denver Cross dock
Denver Cross dock to West region
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Network1 Leg detail - Southeast to West
Southeast region to Louisville Cross dock
Louisville Cross dock to Denver Cross dock
Denver Cross dock to West region
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Itinerary2 – South to West
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Network2 – South to West
Network Detail
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Network2 Leg detail - South to West
South region to Dallas Cross dock
Dallas Cross dock to Denver Cross dock
Denver Cross dock to West Region
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Network2 Leg detail - South to West
South region to Dallas Cross dock
Dallas Cross dock to Denver Cross dock
Denver Cross dock to West Region
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Logistics Guide
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Logistics Guide – Inquiry & Results
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Planning Parameter and Logic configuration
Planning Parameter
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Network Routing Config ID - NR_LOGIC_CONFIG
Order Routing method – Network Routing
Logic configuration
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Optimize Cost – True (Container Optimization)
Multistop cost saving check type – Perform cost saving after each iteration (Multistop)
Logic configuration – Network Routing
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Routing Constraint
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Scenario - Cost saving through Network
Cross docks located at
Louisville, KY
Dallas, TX
Denver, CO
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)
Sunnyvale
Louisville
Denver
Charlotte
Los Angeles
Dallas
Austin
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Jackson
Network Routes
NR1_SOUTHEAST_WEST
NR3_SOUTH_WEST
NR1: South – Dallas ‐ Denver – West NR3: Southeast – Louisville – Denver – West Cross dock locations
Pickup and delivery locations
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
Charlotte, NC to Los Angeles, CA (4000 LB) = 889.28 USD
Jackson, MS to Sunnyvale, CA (30000 LB) = 3942.13 USD
Austin, TX to Los Angeles, CA (10500 LB)= 1229.29 USD
Total costs (Direct) = 6060.7 USD
Total costs (through Network Routing) = 3921.82 USD
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Key Considerations - Know your freight
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Collect historic shipment data
Analyze shipment volume, cost and transit time
Identify key lanes that require
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carrier commitment
equipment capacity
ground schedules
dock scheduling / appointments
Key Considerations - Order management
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Order data accuracy (packaged item, THU, Stack ability, Splittable
etc)
Order dates – Pickup Vs Delivery
Routing constraints
Sequencing factor
Key Considerations - Define Business rules
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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 origins
and destinations
Validation and Troubleshooting
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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)
Allocated 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 Create an Operational report to validate cost savings –Allocated cost Vs Order Direct cost
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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
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Date management
– Order release Pickup/Delivery dates
– Order movement Pickup/Delivery dates
– Date emphasis (SHIP, DELV or BOTH)
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Timing
– Order release creation
– Order movement creation
– Bulk plan Schedule
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Performance
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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
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Be cognizant with planning parameter/logic configuration values(few
examples 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
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Quicker delivery
Maximum Utilization
Reduced inventory costs
Transportation cost savings
Questions?
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Contact us
OTM Sales ‐ North America
Sukumar Srivatsan
[email protected]
Mobile: +1 503‐706‐7272
OTM Competency Head & Global Sales Support
Hemalatha Vema
[email protected]
Mobile: +91‐9989642171
OTM Global Delivery Head Senthilnathan Loganathan
[email protected]
Mobile:+91‐9962515453
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