LeanCor Logistics Webinar: How to Build Lean Logistics Route Plans for Network Stability

Advancing the World’s Supply Chains Copyright © LeanCor 2015
1-Hour Webinar

Ashley Yentz
Director - Account Management
LeanCor Supply Chain Group
ayentz@leancor.com
Career Focus Areas:
Entire career committed to lean logistics –
specifically customer account
management, change management, KPI
creation, lean leadership, network design,
standard work and operating procedures
Skilled in coaching organizations through
their lean logistics implementation:
strategy deployment, culture change,
process standardization
Prior Roles:
•Kaizen Leader, Strategic Planning - Toyota
Motor Sales U.S.A.
•Continuous Improvement Leader -
Toyota’s Parts Operation Supply Chain
•Transportation Analyst - Hilti, Inc.

Matthew Irwin
Team Lead – Lean Logistics
LeanCor Supply Chain Group
mirwin@leancor.com
Career Focus Areas:
Nine years of experience in third party
logistics with a focus on process/system
improvements, analysis, reports and
metrics for all supply chain related
processes.
Prior Roles:
•Senior Logistics Analyst – Amstan
Logistics
•Master of Science in Logistics and Supply
Chain – Wright State University

 Lean, supply chain, six
sigma, and leadership
courses that develop
people capability and
problem solving skills
while building a culture of
operational excellence.
 Project-based, end-to-
end supply chain
solutions that improve
your processes, reduce
inventory and Total Cost,
and optimize your
network.
 Custom, outsourced
transportation
management and
warehousing
solutions that optimize
material flow, and exceed
your business goals.
Trusted supply chain partner that specializes in lean principles to
deliver operational improvement. Three divisions:

Custom, outsourced transportation management and warehousing
solutions that optimize material flow and exceed your business goals
Transportation
Management
Dedicated
Warehousing and
Distribution
Web-Based TMS

A transportation route that is developed to run the exact same
way hourly, daily, weekly, or monthly, to meet the demand of
the parties involved.
Are you currently using stable route plans?
Example:
 Monday – Pickup at Supplier 1 in
Cincinnati, OH – 10:00 AM
 Monday – Pickup at Supplier 2 in
Louisville, KY – 1:00 PM
 Thursday – Delivery at Customer
in Houston, TX – 5:30 AM

The biggest value this adds to the supply chain is the
consistency of the plan, taking the guess work out of the
equation and increasing visibility for all parties.
 The route picks up and delivers at the same day/time.
 The same carrier can be used.
 Can be applied to any type of route – LTL, TL, Parcel, and
Intermodal.
 Multiple suppliers/customers can be included to save on
transportation spend.

•Revenue growth is more difficult to achieve, costs are increasing, and margins are shrinking
•Changing customer requirements require an agile and dynamic supply chain that’s hard to manage
•Shortages in carrier capacity and materials are driving excessive expedites and intercompany
logistics.
•Incremental and ad-hoc “quick fixes” have created a sub-optimized network lacking the right
inventory, in the right distribution points, moved with the right transportation modes.
•Carrier capacity constraints have pushed us to use spot markets rather then carrier partnerships
increasing our transportation spend
•Changes due to complexities in market, channel, supply networks, and distributed facilities has
added difficulty to supply chain planning and decision making.
Which of these challenges resonate in your business?

 Central database of all critical information
required to make business decisions relative
to manufactured or purchased parts used in
a manufacturing facility.
 Pull systems: connects the manufacturing
facility (consumption) through replenishment
(purchasing) to the supplier upstream
Height
LengthWidth
Part Data
(Dimensions)
Height
LengthWidth
Pallet Data
 Data elements include consumption,
packaging, inventory management, material
handling and planning, transportation, and
supplier information
 Core benefits include effective line-side
delivery, reductions in lead time and Total
Logistics Cost, and improvements in pipeline
visibility, first time quality, and supplier fill
rates

The stable route plan is developed based on a number of factors to
maximize efficiency and reduce the total logistics cost.
 Mode selection – LTL, Truckload, Parcel, or Intermodal
 Pickup/Delivery hours/days at all locations
 Total route transit time
 Past/future volume based weight or cubes
 Carrier selection
 Locations of pickups/deliveries
 Cost of lanes via the different modes
 Due dates
Does your company currently use a route optimizer software?

Customer Daily Requirements = x75
100
25
75 100
Day 5
75 100
25
75 75 757575
Day 1 Day 2 Day 5Day 3 Day 4
Order Lot Size = 25
Day 1 Day 3 Day 4Day 2
Order Lot Size = 50
What Happens Here? What are the Implementation Challenges?

Fri1 /week Mon Tues Wed Thr
500
SQ/FT
4PM1 /day 8AM 10AM 12PM 2PM
100
SQ/FT
4PM8AM 10AM 12PM 2PM
25
SQ/FT
4 /day
What is the effect on inventory? What is the obvious challenge?

7AM 9AM 11AM 1PM 3PM
One Shift
Material
Handling
Where can we use this concept tomorrow?

Re-adjust our route plans on a daily basis to
gain efficiencies
Check adjust the plan
 Dynamic mode and route
optimization – balances
cost and stability
 Incremental improvements
 Can leverage data (history
of changes made) to
continuously improve upon
the static route plan

A redesign of the original plan may be needed if the following situations come up.
 Volume has changed for all future shipments, either increased or decreased
 New supplier/customer has been added to the network
 Rates increased or decreased
 Supplier/customer moved locations
 Supplier/customer unable to meet demand
 Holiday contingency planning
 Planned promotions or seasonality
What is the top reason you would adjust your static route plan?

 Financial stability and predictability
 Cost savings related to combined
routing
 Execution of plans is easier for all
parties involved
 Optimized material flow
throughout Supply Chain
 Increased pickup/delivery
performance
 Stronger relationships with carriers,
suppliers, and customers

Next Webinar:
Supplier Development
WED, July 1st | 11:00 – 12:00 EDT
Registration Coming Soon on
LeanCor.com!

Ashley Yentz
ayentz@leancor.com
925.899.9725
Let’s connect on

LeanCor Logistics Webinar: How to Build Lean Logistics Route Plans for Network Stability

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