Transcript Insourcing of route planning in an external scandinavian

Præsentation:
Logistikoptimering
Keld Højgaard Kristensen, Senior Transport Manager, GCO-IL
Arla Foods – owned by
more than 13.500 farmers
from seven countries
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Arla Farms in Denmark
• Map shows farms in Denmark
• We have 3 transportation centres (Nr. Vium,
Taulov, Akafa)
• We have 6 garages and 3 repair/service
places.
• In DK there are 8 different types of milk
collected every day or every second day.
Inbound Logistics DK
342 own drivers
33 external drivers
6 hauliers (8 Trucks)
100 vehicles
19.1 mill km
7.6 m l diesel
365 days a year / 24 hours a day
24 dairies
8 types of milk
400 loads per day
3,150 members
4.6 billion kg milk
700,000 collections
0.62 billion l feed whey a year
to 230 customers
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175.000 transports/loads
cream, whey, milk a year
Route planning in Denmark
Internal truck drivers and hauliers
• Route planning for internal truck drivers and for hauliers is handled in the same way.
• Arla Foods own 100% the detailed route planning for both own truck drivers and our hauliers
• Route planning is done for all Denmark with focusing on interfaces between garages
• Hauliers are paid based on.
• Actual km driven (DTL cost index for trucks)
• Actual truck driver hour (ATL agreement)
• Actual pumping time at our farmers
• 3 min preparation time pr. collection at our farmers
• 30 min pr. 24 hours for washing the trailer
• 30 min pr. Unload at the dairy
• 30 min preparation time for start of the day
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16 July 2015
Keld Højgaard Kristensen
Route planning other countries
Hauliers paid based on
Denmark
• Arla Foods responsible for detailed route plan
• Hauliers paid based on actual hours and km
Sweden
• Arla Foods responsible for detailed route plan
• Hauliers paid based on planned routes hour and km
Germany
• Collection area put out to tender
• Haulier are paid based on their offer
• Haulier is responsible for route planning
UK
• Collection area put out to tender
• Haulier are paid based on their offer
• Haulier is responsible for route planning
We are in a process to implement the DK/SE way in Germany and UK
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16 July 2015
Keld Højgaard Kristensen
Insourcing of route planning in an external Scandinavian
dairy company.
Form a Scandinavian dairy company we obtained the following information.
Situation before insourcing of route planning:
• The external hauliers did the route planning
• Problems with truck waiting time at the dairies before unloading due to same time arrivals
• The trucks was used 12-14 hours pr day.
What did they do:
• Employee one person to do route planning
• Install a route planning IT tool
• The employee started with plotting in the route that the external hauliers was using
• After simulation the dairy company made new routes:
• The trucks drives 20-22 hours pr day
• A number of hauliers was terminated
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16 July 2015
Keld Højgaard Kristensen
What did the dairy company achieve by insourcing of route planning
• After 3 months a reduction of 33 % of the inbound costs was obtained
• No waiting time at the dairies before unloading
• Dynamic route planning
Note :
• The 33% savings was obtained with out changing the haulier payment pr km , pr hour
etc.
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16 July 2015
Keld Højgaard Kristensen
Tak for opmærksomheden !
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