TMS Case Study

Of Descartes Solution in KOREA

2012. 11. 30

MK Alliance Co., Ltd.

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I. Samsung Electronics

II. Homeplus

Table of Contents

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I. Samsung Electronics

• Global Electronics Company (No 1 in Korea)

• Home Appliances, PC, Mobile, Semiconductor

• Domestic Logistics handled by Samsung Electronics Logistics Company

1. Introduction

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I. Samsung Electronics

• Samsung Electronics Logistics Company need

Delivery Schedule and Dynamic Booking Solution for

Domestic Home Appliances, PC, Air Conditioner

• More than 20 DCs, More than 1500 Trucks, More than 10K Orders

• Important to keep Delivery Time when Customer Ordered

• Centralized Delivery Scheduling in H.Q

2. Challenge & Opportunity

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• ATD System (Using Descartes Full Suite) installed in 2004

- Reservation, Route Planner, Dispatch

- Scheduling by Route Planner in Each DCs

• Enhancement Project in 2007

- Delivery compliance rate / Raise Delivery Schedule efficiency

- Better Routing Result Using Dynamic Zoning Function

(Use both Fixed Zone & Dynamic Zone)

• Centralized Delivery Scheduling in H.Q from 2008

3. how we solved the problem using the product features

I. Samsung Electronics

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• Delivery compliance rate : Before 85% After 99%

• Change Roles

- H.Q : Planning by Centralized Scheduling

- DCs : Action to Delivery (not Scheduling)

• Satisfaction Rate of Scheduler : 70% 85

4. Benefits

I. Samsung Electronics

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Planning

Execution

Analysis

Strategic

Planning

Tactical

Planning

Operational

Scheduling

Daily

Scheduling

Real-time

Monitoring

Reporting

& Feedback

Supply Chain

Design

Asset

Management

Strategic

Planning

Reservation

Booking

Routing &

Scheduling

Dispatch &

Rescheduling Monitoring

Performance

Reporting

Sales & Territory Planning(S&TP) Reservations Route Planner Dispatch

MobileLink Report(Crystal) Asset Manager

Monitor Territory Planner

Reservations Route Planner Dispatch

LNOS Fleetwise Suite

I. Samsung Electronics

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Samsung Electronics

(Order)

Samsung Electronics Logistics

(Logistics] DC Drivers

Realtims

Multi-site

Inventory

…

…

DC’s

Supplier’s

W/H

Received

Reserved

Returned

Shipped

Received

Reserved

Returned

Shipped

Check Inventory

(ATP)

Reservation

(ATD)

GPS &

Rescheduling Real-time

Inventory

Status

update

Reservations

Dispatch

Delivery

Schedule

Delivery

Order

Monitoring Center

Real-time

Monitoring

ETA

Service

Alert

GPS

Real-time Delivery

Status update

Proof of Delivery

(PoD)

Truck

Mobile

Delivery Manifest

Route Planner

Mobile Create Order

Call Center

Web Site

……

Payment (Cash/Card)

Payment

ATD System (Available Time to Delivery)

I. Samsung Electronics

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Overall Image

Manage Delivery CAPA

Customer

Order

Store

Decide Delivery Time

ORDERS (RESERVATION)

Scheduling to keep Delivery Time

Schedule

DELIVERY SCHEDULING (ROUTE PLANNER)

Inquiry Delivery CAPA

Driver

MONITORING

CAPA Monitoring Delivery Monitoring KPI Monitoring

Delivery Status

9:30 16:20

15:00

일자 9~12 12~15 15~18 18~21

D+1 X X O O

D+2 O O X O

D+3 O O O O

50

60

70

80

90

7/1 7/2 7/3 7/4 7/5 7/6 7/7 7/8

수도권지사 서부지사 남부지사7월 목표 75%

Delivery compliance rate

I. Samsung Electronics

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II. Homeplus

• Biggest Discount Store in Korea (Owner : TESCO UK)

• # of Stores (Offline) : 127

Among them, # of Stores (Online Stores) : 60

1. Introduction

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• Delivered on the same day

• 10 Time buckets per day (2 Hours Period)

• 3 Times Delivery (Delivery Sequence has 3 or 4 time buckets)

• It is Most important to Keep Delivery Time Bucket

• Schedule information is useful in Picking and Packing

2. Challenge & Opportunity

II. Homeplus

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• Delivery Scheduling System Project in 2008

• Descartes Solution : LNOS FW Route Planner

• System Feature

- Automatic Schedules for all online Stores (60 Stores)

- Schedule for each Delivery Sequence (3 times per Day)

• Delivery Schedule information is used as a input data for

Picking & Packing Scheduling System

- Especially Route ID, Turns in Route Information

3. how we solved the problem using the product features

II. Homeplus

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• Increase Sales Volume

• No one in Store to make a Delivery Schedule

• Raise Delivery compliance rate

• Raise Picking/Packing Efficiency

4. Benefits

II. Homeplus

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Homeplus Online Shopping Mall – Main Page

II. Homeplus

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Homeplus Time Bucket - Website

II. Homeplus

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Delivery Schedule by Optimization Engine Automatically

- Each Order has Route, Route Position, ETA

- Use Schedule Information in Picking/Packing and Delivery

Close Orders

Picking / Packing

Manual Schedule (Driver)

Load

Order ID

Delivery

Close Orders

Delivery Schedule (Engine)

Order – Route Information

Picking / Packing

Load

SMS to Customer (ETA)

Before After

Delivery

Order – Route Information

: increase work efficiency

ETA Service

: Customer Fulfillment

Process Change

II. Homeplus

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OMS Scheduling System

Orders Closed Orders

(Delivery Sequence)

Delivery Scheduling (Automatic)

Pick / P ack

Load

Delivery

Route Planner

Process

II. Homeplus