Logistics Planning Blogs - LPC International

ABI the soft drinks Division of SAB Miller has operated in much the same way from both their wet (production) sites and dry (distribution) sites for years and new management and customer requirements warranted a move away from only side loaded vehicles to a proportion of tail loaded box trailers.

LPC had previously worked with SAB / ABI developing site and facility blueprint designs for future beer and soft drinks depot.

LPC was appointed to review how the total EFS fleet (several thousands of vehicles and appliances) should be deployed to a number of regional locations around the United Kingdom, such that the appropriate numbers of each type of appliance could respond to different types of emergency (up to and including a nuclear attack) in any United Kingdom location within specified response times. 

The review of Automated System Logic and identification of the issues and proposed solutions.

The simulation and modeling study was commissioned as a result of the under performance in parts of the automated materials handling system. Underperformance was manifested for a number of reasons including:

• Late deliveries into customer RDCs
• Orders being delayed
• Incomplete orders being delivered

Problems were also being experienced in the late delivery of raw materials and packaging to Production; causing production delays and shortages that, in turn, had a knock-on adverse affect on the efficiency and timeliness of finished goods warehousing order picking and loading operations.

The study involved using Computer Modelling techniques (DiPS*) to build and evaluate alternative scenarios and to identify the comparative operational costs and Key Performance Indicators (KPI) associated with each.  DiPS is a purpose developed computer model which can be used to examine a wide variety of strategic and tactical questions in distribution and transport operations.

 

Whilst Calder previously operated regional distribution outbases, they were at the time distributing solely from the manufacturing plant in the North East. Calder’s distribution operation had been the subject of a management carrying out local deliveries themselves and subcontracting the balance. 

To this end LPC was retained to carry out a number of simulation exercises to determine the resource and financial impact that various scenarios would have on the distribution operation.

The simulation exercises were undertaken using Dips which is a purpose developed computer model which is very widely used for Facilities Location modelling and Transport Planning. It uses actual road networks, and can “self-optimise” location solutions as well as being used for the development and evaluation of optional scenarios. When being used for Location Modelling Dips can work either with individual collection and delivery points or with “clusters” of collection and delivery points.

A key feature of this project has been the level of integration of technology required to meet very demanding customer service requirements including accuracy and flexibility. The solution features 29 metre high bay storage, mini-load tote storage and picking using “pick-by-light” technology. Importantly, the client retained LPC International to undertake not only the initial conceptual planning study but also the detailed design, the tendering and selection of equipment suppliers and programme management through to completion.

LPC was retained by Nuffield Hospitals to develop a Dips model which is a purpose-developed computer model which is very widely used for Facilities Location modelling and Transport Planning. It uses actual road networks, and can “self-optimise” location solutions as well as being used for the development and evaluation of optional scenarios. When being used for Location Modelling Dips can work either with individual collection and delivery points or with “clusters” of collection and delivery points. 

A large proportion of sales are made via van sales operations which, due to the short-life mature of many of the products, necessitates that customers get daily deliveries.

To expedite the van sales the company uses three fleets of vehicles (dairy, meat and water), with each van carrying stock of up to 300 SKU’s.

 

Initially, LPC International was retained by Newey and Eyre to review its supply chain activities to their circa 200 wholesale branches. Each branch operated effectively as a “stand-alone” business, being responsible for its own buying, stockholding, sales and local delivery operations. The UK was split into regions with each region providing, via a regional hub or “superbranch” some level of stock-cover over and above that carried by each branch. In turn the network was supported by a 90,000 sq.ft NDC at Warrington.