The following are examples of ways that Roggen Management Consultants can assist your company in fine-tuning its distribution and warehousing operations – click on the links to see a brief summary of our consulting experience in each of these areas:
1. NETWORK ANALYSIS - utilize route development and GIS software, plus custom computer models, to determine the optimal configuration for your distribution network, make the best choice among different network options, identify cost effective facility locations, and develop on-time and efficient delivery routes.
2. VEHICLE SCHEDULING AND DISPATCH SYSTEMS - develop shipping and transfer schedules, and establish criteria for shipment mode selection. Create dispatch schedules and delivery routes which assure on-time service at the lowest possible cost.
3. LEASE VS. BUY AND SPECIFICATION OF VEHICLES - determine the most effective type, size, specification, and mix of vehicles in your company’s fleet. Address lease versus buy issues, qualify potential lessors, and determine equitable and cost effective lease rates for both equipment and distribution leases, where the lessor supplies equipment, drivers, and transportation management under a single contract.
4. SUPPLY CHAIN AND DISTRIBUTION MODELING – develop customized models to test various alternatives, and provide solutions, for complex supply chain and distribution issues.
5. SHIPMENT ASSEMBLY AND DISTRIBUTION PROGRAMS - reduce the cost of multiple small shipments to a distant market by consolidating same into larger shipments, to be broken down by a contracted distribution agent within the destination market. The same concept will work to reduce the cost of multiple small long distance delivery routes, by consolidating same onto tractor-trailers for transfer to local delivery runs at a cross-dock facility in the destination market.
Scroll-Down to read brief summaries of our consulting experience…
NETWORK ANALYSIS
Network analysis is interwoven into many consulting studies, where determination of the proper operating procedures and equipment is dependent upon the logistics and configuration of a company’s distribution system. Selection of optimal warehouse and freight terminal locations, along with proper routing procedures and software yields simplification of operations in many companies, while providing the most advantageous relationship between customer service and distribution costs.
Two specific examples of physical distribution and warehousing studies are:
- Performed center of gravity analysis to determine site locations for a volume constrained dual warehousing system to be utilized by a major northeastern grocery distributor. Results of this study showed a 16% reduction in current distribution costs for the volume constrained locations, and additionally computed a potential for a 27% cost reduction for optimal unconstrained location of warehousing facilities.
- Conducted a study of transportation and distribution operations for a major food products manufacturer and distributor in Venezuela. Recommendations for improved operations included projections for an annual cost savings of approximately $400,000 affecting transportation, warehousing activities and order processing. Substantial improvements were also realized in control of product flow within the company’s physical distribution network.
VEHICLE SCHEDULING AND DISPATCH SYSTEMS
- Performed studies of local delivery operations including vehicle scheduling and route development for firms involved in transportation services, manufacturing, publishing, warehousing and associated distribution activities. Factors considered in these studies included:
- Route planning based on miles driven and stops served
- Vehicle specification based on product carried and length of route
- Size of delivery fleet for specific geographic service areas
- Route frequency based on customer service standards
- Conducted in-depth surveys to determine the most practical and economic means of over-the-road transportation for various manufacturing and service industries utilizing both private and commercial carriage. Developed shipping and transfer schedules, and established criteria for shipment mode selection.
- Performed a review of central linehaul dispatch operations for a major east coast motor carrier. Recommendations for improved dispatch control included:
- Establishment of firm policies on linehaul authority
- Improved documentation of dispatcher activities
- Improved dispatch procedures and control
- Earlier transmittal of nightly line-ups by field terminals
- Improved container control significantly reducing per diem charges
LEASE VS. BUY AND SPECIFICATION OF VEHICLES
- Performed separate reviews of the “Distribution Services Lease” providing over-the-road delivery equipment, drivers, and transportation management services for two Major Metro US newspapers. While the agreements were similar in scope, the equipment and services were provided by a national lessor at one newspaper, and a local leasing company at the other.
- In addition to qualifying the lessors and calculating equitable vehicle and labor costs for all scheduled truck runs, these studies evaluated leased equipment selection, dispatch and dock operations, plus the record keeping, reporting, and invoicing performed by the leasing companies for the newspapers. Study results included:
- Recommended changes in the mix of leased vehicles to more closely fit both newspapers’ distribution missions
- Improvements in reporting and invoicing provided by the leasing companies to the newspapers
- Recommendation to replace confusing mileage and hourly lease rates with more easily understood trip rates
- Annual lease cost saving of approximately $350,000 at each newspaper
- Performed numerous studies for common, contract and private motor carriers involving evaluation of existing power and trailer equipment for both linehaul and local delivery operations. Recommendations for improved vehicle specifications, applied to specific client operations, were based on customized criteria, usually including those listed below:
- Payload and cube requirements
- Payload perishability and security requirements
- Buy versus lease analysis
- Fully allocated vehicle and driver operating costs
- Loading and unloading facilities utilized
- Flexibility for backhaul loads
- Intermodal applications
- Maintenance cost and service requirements
- Availability of spare parts
- Driver capabilities and requirements
SUPPLY CHAIN AND DISTRIBUTION MODELING
Performed various consulting projects addressing supply chain and distribution issues, which resulted in development of mathematical models to provide solutions to complex business problems. Some examples of supply chain and distribution modeling situations encountered are:
- Simulation models - designed to show the cost and service effects of proposed changes in operations:
- Freight flow mode selection
- Shipment assembly and distribution programs
- Evaluation of alternative warehouse locations
- Determining customer service impacts due to changes in operations
- Optimizing models – utilized for identifying the best solutions to logistic and distribution problems, presenting a wide range of alternatives.
- Optimal facility site location
- Determination of optimal market service areas, based on existing customer demand patterns and warehouse locations
- Development of efficient and effective local delivery routes
- Development of linked printing and distribution schedules to assure market wide on-time delivery of newspapers containing zoned advertising content
SHIPMENT ASSEMBLY AND DISTRIBUTION PROGRAMS
Performed an in-depth study structured to achieve a reduction of client transportation costs, through assembly and distribution, involving design and implementation of a plan for geographic consolidation of outbound shipments from a consumer products manufacturer, located in New Jersey with annual sales revenues of approximately $100 million.
Projected freight cost savings through implementation of consolidation hubs located in Chicago, Dallas and Los Angeles was in excess of $130,000 a year.
The study, which was performed working closely with the client’s sales and distribution personnel, included identification of specific carriers and distribution agents to service each hub and monitoring of the first consolidated shipments.