lecture 7 tracking -...

Lecture 7-

Tracking

UGSCCS – Autumn 2013

Section 1 Tracking

Section 2 Case Study: Package Tracking

TRACKING

LECTURE STRUCTURE

ProductsBought and sold

Parts (components & raw materials)For manufacture

AssetsTransport

TrucksRailway wagonsShips

Unit loadsPalletsRoll cagesContainersULDs

TRACKING

WHAT IS IT WE ACTUALLY TRACK?

Package

Physical objectTemporarily held by company

Park of a company's inventory stockReason for tracking

Get it sold and to the customerWhere is itWhen will it be delivered

Asset

Physical objectLarge capital investment – shipCheap unit load – pallet / skid

Part of a company’s assetsLong term investment

Reasons for trackingMaintain register of assetsManage availability for manufacture / shippingMaintenance scheduling

TRACKING

ASSET V PACKAGES

Basic unit load technology

Wide range of sizes and designs

Can accommodate different cargo types

Over half a billion manufactured each year

TRACKING

ASSET – PALLETS EXAMPLE

Pallet costsWood ~$10 purchase Plastic ~$60 purchaseTo rent - $5 per use

2011 survey in USA foundMost companies purchase about 9,000 pallets a year 16% companies purchase between 10,000 and 29,000 pallets per year14% companies purchase >30,000 pallets a year (+US$300k per year)

TRACKING

ASSET - PALLET COSTS

Source: Modern Materials Handling (2011) Pallet usage on the rise

Same 2011 survey found in USA8% for warehousing only9% for shipping only83% used for warehousing and shipping

Pallets shipped59% sent one-way (not returned to sender)

Receiver kept pallet Receiver responsible for disposalPallet built for single movementSender continually buy pallets

20% returned to sender for reuseSender inspect returns and reuseSender repairs and disposesPallets have to be managed

20% used in a closed loopPallet moved on to other parties in supply chain

TRACKING

ASSET - PALLET USAGE

Source: Modern Materials Handling (2011) Pallet usage on the rise

Costs of using pallets includesPurchaseRepairsPositioning and collectionReturnsStorage of not in use palletsDisposal

Who pays?SenderTransport companyReceiverPallet rental company

TRACKING

ASSET - PALLET LOGISTICS

Pallet rental company

Common in EuropeLess common in Asia and North America

Example renting companies

Commonwealth Handling Equipment Pool (CHEP)300 million pallets worldwide65 million pallets in USA

90% of pallet rental market20% of all pallets used

11 million pallets in Central EuropeCanadian Pallet Council (CPC)

1,400 companiesManages over 7 million pallets

Other examplesEuropean Pallet Association (EPAL)Logistic Packaging Return (LPR)

TRACKING

ASSET - RENTING PALLETS

CHEP Central Europe

11 million pallets issued annually4,400 delivery points450 customers in Central Europe

TRACKING

ASSET - INTERNATIONAL EXAMPLE

Pallet rental company provides pallets to shipper

Shipper loads pallets with goods to be delivered to customer

Goods transported on pallets to customer

Customer removes goods from pallets

Pallets returned to nearest pallet depotInspected and repaired

Pallets rented to another company

TRACKING

ASSET - TYPICAL RENTAL PROCESS

Rental company

Depot A

Rental company

Depot B

Shipper Customer

Asia Pallet Pool (APP) International Pallet Rental

Operated by JPR (Japan Pallet Rental Corporation)Service allows

Rent in Japan and return overseasRent overseas and return in Japan

TRACKING

ASSET - INTERNATIONAL EXAMPLE

Source: http://www.npp-web.co.jp/english/poolsystem.html

Pallet Pool Pallet PoolCustomer Customer

TRACKING

ASSET - CIRCULATION PROCESS

Pallet Pool B

Pallet Pool C

Pallet Pool A

Shipper 2

Shipper 3

Shipper 1

Customer 2

Customer 1

Customer 3

Part of a supermarket’s assetsFirst introduced in 1937 – USAIntegral part of supermarket shopping

Major investment for supermarket retailersCost ~ £80 per trolley

RequireManagement

Large numbers involvedRepair & maintenance

Keep trolleys movingKeeping safe / secure

When stores closed

TRACKING

RETAILER CHALLENGE

Estimated missing trolleys cost UK business £8 million per year10,000 new trolleys stolen each year

Most trolleys stolen end up abandonedSupermarket staff sent to collect trolleysOthers have to be recovered and disposed of

TRACKING

KEEPING TROLLEYS SAFE

Wheel locking devices fitted to wheelsActivate when the trolley crosses cables/magnetic paving in the ground

Installation of bollards or specialist pavingCreating a physical barrier to the removal of trolleys

Vertical poles on trolleysTall enough to prevent them being taken out of the store

Trolley locks that require a coin to release the trolley

TRACKING

KEEPING CONTROL OF TROLLEYS

The ability to identify the last known or current location and status of a product or

part (or asset) in the supply chain

TRACKING

DEFINTION

What does tracking tells us

The last known or current location of somethingThe last known or current status of something

We want to know the location and status of something

To allow a further action to take place

TRACKING

WHY WE TRACK

Monitor critical / urgent goodsIdentify delay to goods as soon as possible

Why it is late and where it isConfirm when goods are to arrive

Goods ETAPrepare resources to receivePrepare onward transport

Ensure goods sent have arrivedFulfil payment requirements

Security reasonsHigh valueSensitive

VisibilityIdentify when actions are neededSee when damaged?Which supplier or transport company holds cargo ifchanges are required

Final customerDelivery route

TRACKING

VALUE OF TRACKING

Information on what is being trackedProductAsset

Unique identifierShipment unitLogistics unitTraded unitConsumer item

We can then find outCustoms statusPreparation for shipmentConditionLocationDate & time

TRACKING

WHAT DO WE NEED TO KNOW TO TRACK?

Manual data entry

Swipe (magnetic data strip)

OCR (optical character recognition)

RFID (radio frequency identification)

Barcodes

PingingAIS (Automatic Identification System) for shipsRadar for aircraft

TRACKING

CAPTURING INFORMATION



Event basedIdentifying the last reported (known) location and status

TRACKING

DEFINTION – EVENT BASED

Example 1

Pick and scan at packing station

Example 2

Hand held scan at time of shelf

Event based

Item is scanned at periodic intervalsLast reported location and time is given

TechnologiesBarcodeRFID (radio frequency identification)OCR (optical character recognition)

ApplicationsWarehouse pickingCourier parcel trackingRetail POS (point of sale)Container trackingPallet tracking

TRACKING

EVENT BASED TRACKING



Event basedIdentifying the last reported (known) location and status

Real timeIdentifying the current location and status

TRACKING

DEFINTION – REAL TIME

Example

Where is my truck?Fleet manager logs onto internetSends internet message to base station requesting GPS locationBase station transmits the request to satelliteVehicle receives the message

Sends acknowledgement of message to satelliteSends latest position

Satellite transmits response to base stationBase station sends status update via the internet

Process only takes a few seconds

TRACKING

REAL TIME TRACKING

Example where is my truckLets ping it?

Real time

Item is constantly able gives its locationWhen wanted users asks for location

TechnologiesRFID (limited range)Satellite GPS (global positioning system)

ApplicationsShip trackingAircraft trackingTruck tracking

TRACKING

REAL TIME TRACKING

Real time

Item is constantly able gives its locationWhen wanted users asks for locationSystems finds current locationIf user wants update they user asks againSystem looks again for current location

Find location now

Event based

Item is scanned at periodic intervalsLast reported location and time is givenLocation only updated when next scannedBetween scans the item can moveYou cannot ask for current location only the last reported location

Last reported location

TRACKING

EVENT BASED VS REAL TIME

Event based (historic records)ManualBarcodeRFID (radio frequency identification)OCR (optical character recognition)

Real time (find now)GPS (global positioning system)Phone accompanying person

TRACKING

TECHNOLOGY OF TRACKING

TRACKING

TECHNOLOGY SUMMARY

Form Human

ID

Auto

ID

Advantages Disadvantages

Manual Data Yes No • Hands-on tracking • Data entry errors

• Time delay

Barcode Barcode Yes Yes • Well established, flexible

• Attached to item

concerned

• May fall off

• May be damaged

RFID Tag &

Chip

No Yes • Unique ID

• Can be interrogated from

set locations

• May get corrupted

• May be hacked

• May fall off

OCR N/A Yes Yes • No specific label required

• Can be “taught”

• Requires good visibility

of what is being read

• Errors

GPS Chip No Yes • Can track anywhere

• Land, sea, air

• Track moving objects

• Very precise

• Cost of infrastructure

• Satellites

• Blank coverage spots

Premium serviceMore expensive than mail servicesTargets packages that can bear additional cost

Differs from mail servicesSecuritySignatureSpecialization and individualization serviceSpeed of deliveryTracking

Prior to email (and PDFs) business documents were a significant part of the businessInvoices, reports……Over the past 5 years documentation revenues have decreased by 50 per cent

TRACKING

COURIER MARKET - CONCEPT

Time sensitive shipmentsCritical delivery deadlines

Extensive use of air transportSpeed of service

High volumesSmall size items (1.5kg)Suited to automationHigh peaks in package processing

Information (fundamental to service)Track items and assetsConform to customs regulationsEase of processing (managing) high volumes of shipmentsManage unforseen events

Bad weatherUnscheduled aircraft maintenance

TRACKING

COURIER MARKET - CHARACTERISTICS

FedEx11% total air freight revenue12% total forwarding and logistics 671 aircraft42,000 freight vehicles

DHL6.5% total air freight revenue20% total forwarding and logistics 420 aircraft76,200 freight vehicles

UPS (includes TNT)2% total air freight revenue11% total forwarding and logistics 268 aircraft91,700 freight vehicles

TRACKING

BIG THREE - PROFILES

The big 3 global operators control 86% of market (about US$54bn per year)

Small domestic companies control 14% (about US$6bn per year)

TRACKING

USA COURIER MARKET

TRACKING

COMPANY SPECIFIC - FEDEX

550 acre site

179 aircraft gates

15,000,000 sq ft sorting space

172 miles of conveyors, chutes and sorting belts

143 aircraft per night85 landings per hour at pealAircraft unloaded in 17 minutes

Handles >30% of FEDEX shipment volumes

TRACKING

FEDEX MEMPHIS SUPERHUB

Processing capability> 2,200,000 documents and packages / night

ScheduleFirst flight land at 23.00First plane leaves at 02:07

Employees7,500 night sort500 day3,000 support staff

TRACKING

FEDEX MEMPHIS SUPERHUB – AT NIGHT

28% of transport costs occurs over the “last mile” of delivery*

Term originates in telecoms industryLast part of network that delivers service to customer

Characterised in logistics environment byMost complex part of a networkMost expensive part of networkHighly fragmented – to lots of customers

Home deliveriesCan be inefficient

Empty running, missed deliveries, polluting

ImpactsInventory managementSeasonal peaksCustomer serviceTransport management

TRACKING

LAST MILE (KM) TRACKING - GPS

* Council of Logistics Management

Major UK haulier & logistics company2,280 trucksDelivers to a site in Europe every 20 secondsTruck fleet travels equivalent of 24 laps of the earth daily

Isotrack system provides Real-Time satellite trackingExact location of the vehicle at all timesDirection of travel of the vehicleClient can be made aware of any unexpected delay

TRACKING

ASSET TRACKING - EDDIE STOBART (UK)

Section 1 Tracking

Section 2 Case Study: Package Tracking

TRACKING

LECTURE STRUCTURE

Shirt manufactured in Thailand, for retail store in Nashville

PACKAGE TRACKING

CONSIDER A SINGLE SHIRT

Shirt manufactured in Thailand, for retail store in Nashville

Shipped on vessel to Singapore from BangkokTranshipped onto vessel to Tacoma (USA)Transferred onto double-stack rail service via Chicago to NashvilleDelivered to warehouse in NashvilleDelivered to retail store in Nashville

PACKAGE TRACKING

THE SHIPPING COMPLEXITY

PortFactory WarehousePort Shop

PACKAGE TRACKING

TRANSPORT – EVENTS

Load container

(Shipping Unit)

On route

(Shipping Unit)

Arrive port

(Shipping Unit)

Depart warehouse

(Shipping Unit)

In yard

(Shipping Unit)

Bangkok

Loaded

(RFID – WMS)

Tracking

(GPS)

Key events &

technology

Arrived Port

(OCR – PMS)

Departed

(Manual – WMS)

Shipping Unit Container

GSQU3054383

Truck กข7062

Container

GSQU3054383

Truck กข7062

Container

GSQU3054383

Truck กข7062

Container

GSQU3054383

Truck กข7062

Container

GSQU3054383

Logistics Unit Pallet_ID #ZYX009 Pallet_ID #ZYX009 Pallet_ID #ZYX009 Pallet_ID #ZYX009 Pallet_ID #ZYX009

Traded Unit Carton_ID #00025 Carton_ID #00025 Carton_ID #00025 Carton_ID #00025 Carton_ID #0025

Consumer Unit Shirt_ID #00001 Shirt_ID #00001 Shirt_ID #00001 Shirt_ID #00001 Shirt_ID #00001

Other Customer order # Customer order # Customer order # Customer order # Customer order #


PACKAGE TRACKING

EXPORT PORT – EVENTS

Load onto ship

(Shipping Unit)

Tranship discharge

(Shipping Unit)

On route

(Shipping Unit)

Clear Customs

(Shipping Unit)

Bangkok Singapore

In yard

(Shipping Unit)

Cleared

Customs

On board

Manual - PMS

Key events &

technology

In port

(Manual – PMS)

Tracking

(Satellite – AIS)


GSQU3054383

Container

GSQU3054383

Ship CAU Express

Container

GSQU3054383

Ship CAU Express

Container

GSQU3054383

Container

GSQU3054383




Other Customer order # Customer order #

Bill of Lading

Voyage number

Customer order #

Bill of Lading

Voyage number

Customer order #

Bill of Lading

Customer order #

Bill of Lading


PACKAGE TRACKING

IMPORT PORT – EVENTS

On route

(Shipping Unit)

Clear Customs

(Shipping Unit)

Discharge

(Shipping Unit)

Tranship loading

(Shipping Unit)

Singapore Tacoma

In yard

(Shipping Unit)

Tracking

(Satellite – AIS)

Key events &

technology

On board

(Manual – PMS)

In port

(OCR – PMS)Cleared Customs

(Customs)


GSQU3054383

Container

GSQU3054383

Vessel Ship Express

Container

GSQU3054383

Vessel Ship Express

Container

GSQU3054383

Container

GSQU3054383




Other Customer order #

Bill of Lading

Customer order #

Bill of Lading

Voyage number

Customer order #

Bill of Lading

Voyage number

Customer order #

Bill of Lading

Customer order #

Bill of Lading


PACKAGE TRACKING

RAIL – EVENTS

On route

(Shipping Unit)

On route

(Shipping Unit)

Marshalling yard

(Shipping Unit)

Load rail wagon

(Shipping Unit)

Unload wagon

(Shipping Unit)

Tracking

(RFID)In Depot

(OCR – PMS)

Key events &

technology

Tracking

(RFID)

On Wagon) Train Depart

(RFID)

Train Arrived

(RFID)

Train Depart

(RFID)

Train Arrived

(RFID)


GSQU3054383

Wagon No

Container

GSQU3054383

Wagon No

Container

GSQU3054383

Wagon No

Container

GSQU3054383

Wagon No

Container

GSQU3054383





Bill of Lading

Customer order #

Bill of Lading

Train #1

Customer order #

Bill of Lading

Customer order #

Bill of Lading

Train #2

Customer order #

Bill of Lading

Tacoma Chicago Nashville

PortFactory Port Shop

PACKAGE TRACKING

DELIVERY – EVENTS

On route

(Shipping Unit)

Pallet unloaded

(Logistics Unit)

Arrived RDC

(Shipping Unit)

Load truck

(Shipping Unit)

Tacoma

Pallet broken down

(Traded Unit)

Warehouse

Tracking

(GPS)

Cartons scanned

(RFID – WMS)

Key events &

technology

Delivery checked

(RFID - WMS

Loaded

(RFID – WMS)

Departed

(Manual – WMS)

Arrived

(RFID - WMS


GSQU3054383

Truck JJZ 109

Container

GSQU3054383

Truck JJZ 109

Container

GSQU3054383

Truck JJZ 109

Logistics Unit Pallet_ID #ZYX009 Pallet_ID #ZYX009 Pallet_ID #ZYX009 Pallet_ID #ZYX009




Bill of Lading

Customer order #

Bill of Lading

Customer order #

Bill of Lading

Customer order # Customer order #

PortFactory Port Shop

PACKAGE TRACKING

WAREHOUSE – EVENTS

Build roll cage

(Logistics Unit)

Load truck

(Logistics Unit)

Ready for dispatch

(Logistics Unit)

Cross dock

(Traded Unit)On route

(Shipping Unit)

Warehouse

Cartons sorted by store

(RFID – WMS)

Tracking

(GPS)

Key events &

technology

Ready for loading

(RFID - WMS)

Roll cage filled

(RFID – WMS)

Departed

(Manual - WHS)

Shipping Unit Truck JJZ 109 Truck JJZ 109

Logistics Unit Cage_ID #AB09 Cage_ID #AB09 Cage_ID #AB09 Cage_ID #AB09



Other Customer order # Customer order # Customer order # Customer order # Customer order #


PACKAGE TRACKING

FINAL DELIVERY – EVENTS

Roll cage unloaded

(Logistics Unit)

Arrive store

(Shipping Unit)

On shelf

(Consumer Unit)

Roll cage to shop floor

(Logistics Unit)

Carton opened

(Traded Unit)

Shipping Unit Truck JJZ 109

Logistics Unit Cage_ID #AB09 Cage_ID #AB09 Cage_ID #AB09

Traded Unit Carton_ID #00025 Carton_ID #00025 Carton_ID #00025 Carton_ID #00025


Other Customer order # Customer order # Customer order # Customer order #

Delivery checked

(RMS)

Sold to customer

(Barcode – POS)

Key events &

technology

Placed on shelf

(RFID – RMS)

Arrived

(RMS)

Consumer unitShirt 1

Traded UnitCarton 1

Logistics unitPallet 1Roll cage 1

Shipment UnitsTruck 3Ship 2Rail wagon 1Train 2

LocationsPort 3Rail yards 3Warehouse 2Factory 1Retail shop 1

Many 10s of other referencesCustomer order numberBill of lading numberSeal number Invoice numberShip IMO numberShop number …..

PACKAGE TRACKING

IN THIS EXAMPLE

Huge amount per shipment

Different technologiesBarcode, RFID, GPS satellite, OCR

Information takes many formsInternal to a company

Invoicing / orderingManufacture

External between companiesAllow goods to be trackedAllow invoicing / payment

Information is not relevant to everyoneManufacturerSupplierTransport companyPurchaserConsumer

PACKAGE TRACKING

SUMMARY

lecture 7 tracking -...

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