2.1 Tracking Technologies2.1.
1 RFID SystemsOne of the earliest technologies in cargo tracking is radio frequency identification (RFID) devices. There are many tags placing on items that can be active (emitting a radio frequency signal constantly) or passive (only emitting a signal when queried by an outside source).Tags without internal power supply are used in passive RFID systems. They are powered by the electromagnetic energy transmitted from an RFID reader. Various applications of passive RFID (e.g access control, file tracking, race timing, supply chain management and smart labels) make this technology publicly recognized and the lower application cost per tag makes passive RFID systems economical among industries.Figure 2.
1: A roll of Passive RFID InlaysActive RFID systems use battery-powered RFID tags that continuously broadcast their own signal. Active RFID tags are commonly used as “beacons” to accurately track the real-time location of assets or in high-speed environments such as tolling. However, higher cost incurs as active tags enable a much longer readable range than passive ones.
Figure 2.2: An extremely rugged Active RFID TagFigure 2.3: Passive RFID vs Active RFIDSpecialized Scanners which are specific to the proprietary receivers are required by RFID to read and transmit data.
This infrastructure might lead to a high amount of capital, but in a small and localized scale, this infrastructure is powerful enough to track and provide information. While the prices of traditional tracking devices decreases and remaining relevant and innovative, cellular and satellite technology helps to make it easier to secure real-time tracking coverage for almost the entire world. Companies must balance budget constraints with a realistic view of the coverage needed when selecting shipment tracking technologies.Figure 2.4: Typical Components of a RFID System2.1.2 Global Positioning System (GPS)Global Positioning System (GPS) is a U.
S. owned technology that helps to locate and track GPS-enabled devices by using satellites. All satellites fall into three main segments: the space segment, the control segment, and the user segment.
Figure 2.5: Different Segments consisted in GPSDevices on Earth will pick up signal from the satellites from space when they broadcast its location status and time. At the same time, the device will document the signal on the point of received and calculate the distance between the device and Satellite.
At least 4 different signals will be picked up by the device, which then calculates the distance between each of them and uses an algorithm to determine the actual position of the device. On the other hand, assisted GPS is a much faster process. It is common that there are GPS receivers at the cellular network towers and those receivers are constantly computing the data collected from the satellite. These data will then be passed on to the cellular phone.
GPS computations are handled by 3rd party computers and the results of these are: Faster Location Acquisition, Lesser processing power required, Improves battery life, Location acquisition indoors or in non-optimal environmental settings. The results mentioned above together with the low cost for GPS is the reason why cellular tracking devices are much more preferred as compared to satellite devices, especially when the tracking is done within a geographical area covered by cellular infrastructure.Figure 2.6: GPS vs AGPS2.2 Route Planning2.2.
1 Planning for an Optimal Route1. Correct InformationBefore we start delivering to each location, we should double check the address, contact number and product quality. This ensures that the information given by the customers are correct. For example, we can call/email the customer to clarify with them about the delivery time and venue again before we deliver to them. 2. Retailer RequirementWhen the customer orders something, we need to check if the customer has any special requirements for the shipment / item before we receive their order.
Some of the requirements include:Airport pass to enter the airportDelivering to location which requires tailgateOrder volumes are so large that 2 trucks is required for the delivery and both of them have to be convoy with each other3. Ad-Hoc OrdersSet a Cut-Off time for Ad-Hoc Orders for every working day and inform the customers about this timing if there’s any Ad-Hoc Orders. 4. SoftwareObtain a software to plan for optimal route. Get a free software online such as RouteXL, ODL Studio, MyRouteOnline etc. Softwares help to plan optimal route quickly and save time. Other than installing software, create an Excel for backup. a) Driv.
in- This app contains features which allow drivers to review order details, sequence optimal routes, etc. Additionally, the app automatically transmits the GPS position of each vehicle and any related information such as the speed of the vehicle, Completed & In-Progress Schedule to the company.Figure 2.7: Optimization Parameters of Driv.
InFigure 2.8: Operational Monitoring of Driv.In Figure 2.
9: Management and Operational Reports of Driv.In b) RouteXL- RouteXL is a road route planner which finds an optimal route for deliveries, pickups and services. Their smart algorithm sorts addresses to minimize the overall duration of the route. The user simply needs to add in the departure location and all arrival locations into the map, and just 1 click, the route will be shown and presented in the map. Instead of manually inputting the locations, this software also allows us to import data from CSV file or excel spreadsheet. We can then export the outcome into our navigation applications, email to our friends and colleagues, or share on social media.Figure 2.10: Sample of Route XLc) Open Door Logistics (ODL) StudioODL Studio is an easy-to-use Standalone open source desktop application for performing:Territory DesignTerritory MappingVehicle Routing & Scheduling Command Line Interface for system integrationBy using ODL Studio, we will be able to plan and optimise truck routing while minimising costs and maximising customer satisfaction.
Some of the functions ODL Studio includes modelling routes using real road networks, analysing the time usage in a Gantt chart and generating detailed reports on the route details in PDF format, etc.Figure 2.11 An example of the screenshot of the Route in Map 2.2.2 Reducing Delivery CostsConsolidate Deliver OrdersMaking use of Full-Truck-Load (FTL) arrangement by consolidating orders allows the goods to be shipped as containerized-cargo which offers better security at a lower cost.
At the designated port / Distribution Centre (DC), the consolidated shipments will then be separated back into its individual consignments for delivery to their respective consignees. This is known as group shipments. Hence, we should convince and persuade the customers to opt for FTL shipment which can helps to reduce delivery cost.
LabourCalculate the cycle time of workers who prepare delivery of goods. If there’s too much manpower, the company can reduce accordingly and reduce labour cost.Quality Pre-shipment inspection (PSI), is a part of supply chain management and an important quality control method for checking the quality of goods clients buy from suppliers.
There should always be a Quality Check (QC) process at the end before releasing the orders for delivery. This is to check for any defective products, quantity and quality of products. By doing so, it will improves the number of return orders and increases our reputation in the industry.Automation A fully automated warehouse would help to reduce labour cost which will result in higher profit margins. It may also reduce delivery costs. Examples of automatic technologies are : Split Roller ConveyorUsed with product carrier with end to end legsCollaborative RobotA robot intended to physically interact with humans in a shared workplaceAutonomous Mobile Robot (AMR)Perform behaviour or tasks with a high degree of autonomy, which is particularly desirable in fields such as delivery goods and service.2.2.
3 Pickup and Delivery Problem with Time Windows (PDPTW)What is it?PDPTW is an extension of Vehicle Routing Problem (VRP) with Time Window. The difference is that the customers’ transportation request not only have a defined delivery location, but also a specific pickup location, which typically differ from the depot.A solution to a PDPTW problem is a set of routes for a fleet of vehicles. It includes sequential Pickups & Deliveries, whereby all locations are visited within the specific time windows. For each delivery, both pickup and delivery locations must be visited by the same vehicle. CharacteristicsA central depot and a set of customersEach customer has a specific pickup and delivery locationEach customer has a specific volume to be picked up and delivered within a specified time window (Varies between customers)A set of vehicles with maximum capacity constraintsThere are given distances and travel time between the locations2.2.
4 ChallengesPickup-and-delivery requests. Does the company only deliver goods to customers, or are they confronted with a combination of picking up and delivering orders?For example, Milkman delivering full milk bottles and collecting empty milk bottles at the same timeCompatibility between locations, requests, vehicles and drivers. Large trucks will not be able to access narrow streets, delivery of frozen products requires trucks with refrigerator compartments or customers and drivers should preferably speak the same language, etc.Multiple time windows for locations and requests. Different time windows for Company and Customers. Pick up and Delivery should be done on the same working day and fulfill the time windows for each customers.
Consideration of service times. The duration of the service time is dependent on the product characteristics, volume, size, etc. In addition, there might be a delivery schedule for the driver to fulfill. For example, Truck has to reach and completed by 2.
30pm at Location A as the loading bay is booked from 2.30pm – 3.30pm by another delivery order.Multiple cost drivers.
What are the key drivers of transport cost? Is it driven by kilometers and working hours, or rather by the number of stops in a route? Are there any penalty costs, for instance for orders that are not delivered on the requested day? Such costs are company-specific and many companies have multiple cost components with different priorities. As such, a commercial route optimizer must be able to plan routes to minimize the logistics cost. Multiple capacity constraints. The maximal capacity of a truck is not solely determined by the maximal allowed weight. Volume, load meters, or other capacity constraints may be more relevant in your business. Therefore it is important that a commercial route optimizer can handle several capacity constraints simultaneously.Multiple use of vehicles. Vehicles can be used for one or more routes throughout the day.
And sometimes, it’s not necessary for the truck to return to the depot at the end of the day.Driver rules. Drivers may have their default truck, or may switch trucks from day to day. In addition, regulatory breaks and lunch breaks need to be accounted for, and the work hour rules and regulations should be respected in route planning.
Dynamic planning over a one-week planning horizon with event- or time-based rolling horizon planning. A route plan is usually dynamic, it changes when new information becomes available. Changes in orders, Ad-Hoc Orders, cancellations, etc. may require a revision of the routing plan.
Re-optimization options & interactive planning. Full automation on route planning is often not desirable. Instead, a commercial route optimizer should allow planners to interact with the optimization process, and re-optimize based on user input.
2.3 Key Performance Indicators (KPIs)A Key Performance Indicator is a measurable value that demonstrates how effectively a company is achieving key business objectives. Organizations use KPIs at multiple levels to evaluate their success at reaching targets. High-level KPIs may focus on the overall performance of the enterprise, while low-level KPIs may focus on processes in departments such as sales, marketing or a call center.2.3.
1 Vehicle FillsVehicle Fill is measured by degree of loading against actual capacity by weight, volume (cube) and unit loads carried.2.3.2 Empty RunningEmpty running is defined as the distance the vehicle travelled with empty load.2.3.3 Time UtilisationTime utilisation is measured by seven categories of use: Running on the road (including legal breaks) On the road but stationary during the daily driver rest-periodBeing loaded or unloaded (including time spent on maneuvering / paperwork) Preloaded and awaiting departureDelayed or otherwise inactiveUndergoing maintenance or repairEmpty and stationary 2.
3.4 Deviations from scheduleDeviations from schedule or time window covers any delay deemed to be significant, with 6 possible causes:Problems at Collection Point (Consigning company’s responsibility)Problems at Delivery Point (Receiving company’s responsibility)Own company actionsTraffic jamVehicle BreakdownLack of Manpower2.3.
5 Fuel ConsumptionFuel consumption , measured in kilometers per litre, was recorded by vehicle types for each fleet. The rate in which vehicle consumes fuel is affected by a range of factors, including:Weight of vehicle and loadNature of the driving conditions and the frequency of stopsDriving TechniqueSpecification of the vehicle including airflow management equipment