The Implications of Cross-Docking in the Manufacturing Sector of Pakistan

Abstract - Purpose of the study is to find out the role of cross-docking in FMCG sector of Pakistan. Research will be helpful to find out the benefits, risks, benefits and challenges for implementing the cross-docking in organizations. The researchers have gathered the interview from twelve supply chain managers working in the manufacturing sector of Pakistan. The study can be useful for the organizations adopting the cross-docking strategy especially in the uncertain countries. The result shows that cross-docking leads to improve the customer services and helps to achieve cost-effectiveness. It can improve the lead time tremendously but labor cost does not get reduced in cross-docking. Cross-docking may lead to increase the risk of uncertainties, chances of pilferages and damages. Keywords: Cross-docking, warehouse, pilferage, lead time, cost, customer satisfaction, customer services, uncertainty, damages, safety stoc

Simulation and optimization of a multi-agent system on physical internet enabled interconnected urban logistics.

An urban logistics system is composed of multiple agents, e.g., shippers, carriers, and distribution centers, etc., and multi-modal networks. The structure of Physical Internet (PI) transportation network is different from current logistics practices, and simulation can effectively model a series of PI-approach scenarios. In addition to the baseline model, three more scenarios are enacted based on different characteristics: shared trucks, shared hubs, and shared flows with other less-than-truckload shipments passing through the urban area. Five performance measures, i.e., truck distance per container, mean truck time per container, lead time, CO2 emissions, and transport mean fill rate, are included in the proposed procedures using real data in an urban logistics case. The results show that PI enables a significant improvement of urban transportation efficiency and sustainability. Specifically, truck time per container reduces 26 percent from that of the Private Direct scenario. A 42 percent reduction of CO2 emissions is made from the current logistics practice. The fill rate of truckload is increased by almost 33 percent, whereas the relevant longer distance per container and the lead time has been increased by an acceptable range. Next, the dissertation applies an auction mechanism in the PI network. Within the auction-based transportation planning approach, a model is developed to match the requests and the transport services in transport marketplaces and maximize the carriers’ revenue. In such transportation planning under the protocol of PI, it is a critical system design problem for decision makers to understand how various parameters through interactions affect this multi-agent system. This study provides a comprehensive three-layer structure model, i.e. agent-based simulation, auction mechanism, and optimization via simulation. In term of simulation, a multi-agent model simulates a complex PI transportation network in the context of sharing economy. Then, an auction mechanism structure is developed to demonstrate a transport selection scheme. With regard of an optimization via simulation approach and sensitivity analysis, it has been provided with insights on effects of combination of decision variables (i.e. truck number and truck capacity) and parameters settings, where results can be drawn by using a case study in an urban freight transportation network. In the end, conclusions and discussions of the studies have been summarized. Additionally, some relevant areas are required for further elaborate research, e.g., operational research on airport gate assignment problems and the simulation modelling of air cargo transportation networks. Due to the complexity of integration with models, I relegate those for future independent research

Physical internet enabled transit centers : business modeling and profitability assessment

Dans cette recherche, la modélisation d'affaires des centres de transit de l'Internet physique (PI, π) est étudiée dans le but d'aider les gestionnaires de la logistique, les analystes d'affaires et les investisseurs potentiels à avoir une analyse profonde et rapide des principaux aspects d'affaires de ces unités d'affaires. La première partie de cette étude examine les aspects critiques de conception de l'entreprise qu’est un π-transit. Pour atteindre cet objectif, le canevas de modèle d’affaires proposé par Osterwalder et Pigneur (2010) est utilisé pour développer un modèle d'affaires pour cette composante spécifique de l'Internet Physique. La deuxième partie de cette recherche étudie l'effet de l'emplacement sur le modèle d'affaires du π-transit. Un cadre conceptuel est élaboré pour identifier les différents composants affectant le modèle d'affaires d'un π-transit, chacun étant divisé en éléments particuliers. L'impact de la localisation d’un π-transit sur son modèle d'affaires est analysé pour chaque élément à travers un ensemble d'indicateurs. Le modèle est ensuite appliqué pour analyser l'environnement d’affaires pour des sites situés dans les régions métropolitaines. La dernière partie de la recherche étudie l'effet d'un ensemble de facteurs de localisation sur le profit potentiel d’un π-transit. Un modèle analytique est développé et validé par le biais de corrélations et de régressions étant donné un ensemble de données empiriques d’une expérience de simulation à grande échelle.In this research, the business modeling of Physical Internet (PI, π) enabled transit centers is investigated with the goal of helping logistics managers, business analysts and potential investors to have a deep and quick scan over the key business aspects of these business units. The first part of this research investigates critical business aspects of π-transit related to its specific design. To reach this goal, the Business Model Canvas proposed by Osterwalder and Pigneur (2010) is used to develop a business model for this specific Physical Internet component. The second part of this research investigates the effect of location on the π-transit business model. A conceptual framework is elaborated to identify the various components affecting a π-transit’s business model, each one being divided into elements. The impact of location on the business model is analyzed for each element through a set of indicators. The framework is then applied for analyzing the business environment of sites located in metropolitan areas. The last part of the research investigates the effect of a set of location factors on the potential for profitability of π-transits. An analytical model is developed and validated through correlation and regression analyses using data from a large-scale simulation experiment

Horizontale en verticale samenwerking in distributieketens met cross-docks

Logistiek dienstverleners staan voor grote uitdagingen op het gebied van duurzaamheid, in het bijzonder vanwege de steeds kleiner wordende zendingen die just-in-time bij de klant moeten worden afgeleverd. Samenwerking tussen partners in de distributieketen en met concurrenten daarbuiten biedt kansen om deze uitdagingen het hoofd te bieden. Dit proefschrift richt zich op samenwerkingsvormen in distributieketens met cross-docks. Cross-docks zijn logistieke centra die bedrijven in staat stellen om kleine zendingen gegroepeerd te transporteren zonder dat daarvoor tussentijdse opslag nodig is. In een cross-dock worden goederen direct van inkomende naar uitgaande vrachtwagens verplaatst. Het succesvol toepassen van cross-docking vereist verticale samenwerking tussen partners in opeenvolgende stadia van de distributieketen. Horizontale samenwerking ontstaat tussen mogelijk concurrerende bedrijven die vergelijkbare activiteiten in verschillende distributieketens uitvoeren. Dit proefschrift presenteert theoretische modellen voor horizontale en verticale samenwerking in distributieketens met cross-docks en bestudeert oplossingsmethodieken waarmee de duurzaamheid van deze ketens kan worden verbeterd. Daarvoor worden concepten uit de vakgebieden informatiesystemen, Operations Research en Supply Chain Management gecombineerd. De in dit proefschrift beschreven classificatie van wiskundige cross-docking modellen onthult nieuwe onderzoeksvragen gericht op een betere afstemming tussen interne cross-dock processen en ketenlogistiek. Een simulatiestudie illustreert hoe geringe aanpassingen in de ketenlogistiek tot grote prestatieverbeteringen in het cross-dock leiden. Op het gebied van horizontale samenwerking is een methode ontwikkeld die de uitwisseling van ladingen tussen transporteurs systematiseerd. Een reeks casussen toont aan dat doorbraken in ICT ontwikkeling nodig zijn om samenwerkende transporteurs in staat te stellen gezamenlijk planningsbeslissingen te nemen

Energy and Carbon Dioxide Impacts from Lean Logistics and Retailing Systems: A Discrete-event Simulation Approach for the Consumer Goods Industry

abstract: Consumer goods supply chains have gradually incorporated lean manufacturing principles to identify and reduce non-value-added activities. Companies implementing lean practices have experienced improvements in cost, quality, and demand responsiveness. However certain elements of these practices, especially those related to transportation and distribution may have detrimental impact on the environment. This study asks: What impact do current best practices in lean logistics and retailing have on environmental performance? The research hypothesis of this dissertation establishes that lean distribution of durable and consumable goods can result in an increased amount of carbon dioxide emissions, leading to climate change and natural resource depletion impacts, while lean retailing operations can reduce carbon emissions. Distribution and retailing phases of the life cycle are characterized in a two-echelon supply chain discrete-event simulation modeled after current operations from leading organizations based in the U.S. Southwest. By conducting an overview of critical sustainability issues and their relationship with consumer products, it is possible to address the environmental implications of lean logistics and retailing operations. Provided the waste reduction nature from lean manufacturing, four lean best practices are examined in detail in order to formulate specific research propositions. These propositions are integrated into an experimental design linking annual carbon dioxide equivalent emissions to: (1) shipment frequency between supply chain partners, (2) proximity between decoupling point of products and final customers, (3) inventory turns at the warehousing level, and (4) degree of supplier integration. All propositions are tested through the use of the simulation model. Results confirmed the four research propositions. Furthermore, they suggest synergy between product shipment frequency among supply chain partners and product management due to lean retailing practices. In addition, the study confirms prior research speculations about the potential carbon intensity from transportation operations subject to lean principles.Dissertation/ThesisPh.D. Sustainability 201

From Network to Web dimension in supply chain management

Cette thèse soutient que la dimension réseau, étant actuellement la portée du domaine de la gestion de chaîne logistique, contraint l’avancement de ce domaine et restreint des innovations conceptuelles et fondamentales capables d’adresser les grands défis économiques, environnementaux et sociaux. Les concepts de chaîne et de réseau ne reflètent pas la complexité des flux physiques, informationnels et financiers générés par les interactions qui ont lieu dans des réseaux interconnectés. Ces concepts n’offrent pas les fondations théoriques pour supporter des interventions allant au-delà d’un seul réseau et laissent échapper des opportunités nécessitant une vision multi-réseau. Ainsi, la dimension “web”, celle des réseaux de réseaux, est proposée comme une extension de la dimension réseau. Cette extension peut être vue comme l’étape naturelle suivante dans la progression qui a commencé par le niveau de gestion des opérations internes, est passée au niveau de la chaîne logistique et se trouve actuellement au niveau du réseau logistique. Après l’investigation théorique des raisons et de la façon d’intégrer la dimension web dans le domaine de la gestion de la chaîne logistique, la thèse étudie des implications importantes de cette intégration sur la collaboration inter-organisationnelle et le processus de prise de décision dans des environnements de webs logistiques. Elle démontre, en exploitant l’exemple des réseaux interconnectés ouverts, des potentialités inimaginables sans une vision web. Une méthodologie de conception d’un modèle de simulation permettant l’évaluation et la comparaison des webs ouverts par rapport aux webs existants est proposée. Puisque l’aide à la décision est une composante importante de la gestion de la chaîne logistique, la thèse contribue à déterminer les besoins des gestionnaires et à identifier les lignes directrices de la conception des outils d’aide à la décision offrant le support adéquat pour faire face aux défis et à la complexité des webs logistiques. Ces lignes directrices ont été compilées dans un cadre de conception des logiciels d’aide à la décision supportant la dimension web. Ce cadre est exploité pour développer quatre applications logicielles offrant aux praticiens et aux chercheurs des outils nécessaires pour étudier, analyser et démêler la complexité des webs logistiques.This thesis argues that the network dimension as the current scope of supply chain management is confining the evolution of this field and restricting the conceptual and fundamental innovations required for addressing the major challenges imposed by the evolution of markets and the increased intricacies of business relationships. The concepts of chain and network are limitative when attempting to represent the complexity of physical, informational and financial flows resulting from the interactions occurring in overlapping networks. They lack the theoretical foundations necessary to explain and encompass initiatives that go beyond a single chain or network. They also lead to overlook substantial opportunities that require beyond a network vision. Therefore, the “web” dimension, as networks of networks, is proposed as an extension to the network dimension in supply chain management. This new scope is the natural next step in the progression from the internal operations management level to the supply chain level and then to the supply network level. After a theoretical investigation of why and how the web dimension should be integrated into the supply chain management field, the thesis studies and discusses important implications of this integration on inter-organisational collaboration and of the decision-making processes in the logistic web environments. It demonstrates through the example of open interconnected logistic webs some of the potentials that cannot be imagined without a web vision. A methodology for designing a simulation model to assess the impact of such open webs versus existing webs is proposed. Since decision support is a key element in supply chain management, the thesis contributes to determine the needs of supply chain managers and identify the important axes for designing decision support systems that provide adequate assistance in dealing with the challenges and complexity presented by logistic web environments. The identified elements result in the establishment of a foundation for designing software solutions required to handle the challenges revealed by the web dimension. This conceptual framework is applied to the prototyping of four applications that have the potential of providing practitioners and researchers with the appropriate understanding and necessary tools to deal with the complexity of logistics webs

Warehousing and Inventory Management in Dual Channel and Global Supply Chains

More firms are adopting the dual-channel supply chain business model where firms offer their products to customers using dual-channel sales (to offer the item to customers online and offline). The development periods of innovative products have been shortened, especially for high-tech companies, which leads to products with short life cycles. This means that companies need to put their new products on the market as soon as possible. The dual-channel supply chain is a perfect tool to increase the customer’s awareness of new products and to keep customers’ loyalty; firms can offer new products online to the customer faster compared to the traditional retail sales channel. The emergence of dual-channel firms was mainly driven by the expansion in internet use and the advances in information and manufacturing technologies. No existing research has examined inventory strategies, warehouse structure, operations, and capacity in a dual-channel context. Additionally, firms are in need to integrate their global suppliers base; where the lower parts costs compensate for the much higher procurement and cross-border costs; in their supply chain operations. The most common method used to integrate the global supplier base is the use of cross-dock, also known as Third Party Logistic (3PL). This study is motivated by real-world problem, no existing research has considered the optimization of cross-dock operations in terms of dock assignment, storage locations, inventory strategies, and lead time uncertainty in the context of a cross-docking system. In this dissertation, we first study the dual-channel warehouse in the dual-channel supply chain. One of the challenges in running the dual-channel warehouse is how to organize the warehouse and manage inventory to fulfill both online and offline (retailer) orders, where the orders from different channels have different features. A model for a dual-channel warehouse in a dual-channel supply chain is proposed, and a solution approach is developed in the case of deterministic and stochastic lead times. Ending up with numerical examples to highlight the model’s validity and its usefulness as a decision support tool. Second, we extend the first problem to include the global supplier and the cross-border time. The impact of global suppliers and the effect of the cross-border time on the dual-channel warehouse are studied. A cross-border dual-channel warehouse model in a dual-channel supply chain context is proposed. In addition to demand and lead time uncertainty, the cross-border time is included as stochastic parameter. Numerical results and managerial insights are also presented for this problem. Third, motivated by a real-world cross-dock problem, we perform a study at one of the big 3 automotive companies in the USA. The company faces the challenges of optimizing their operations and managing the items in the 3PL when introducing new products. Thus, we investigate a dock assignment problem that considers the dock capacity and storage space and a cross-dock layout. We propose an integrated model to combine the cross-dock assignment problem with cross-dock layout problem so that cross-dock operations can be coordinated effectively. In addition to lead time uncertainty, the cross-border time is included as stochastic parameter. Real case study and numerical results and managerial insights are also presented for this problem highlighting the cross-border effect. Solution methodologies, managerial insights, numerical analysis as well as conclusions and potential future study topics are also provided in this dissertation

Smart Industry - Better Management

The ebook edition of this title is Open Access and freely available to read online. Smart industry requires better management. As industrial and production systems are future-proofed, becoming smart and interconnected through use of new manufacturing and product technologies, work is advancing on improving product needs, volume, timing, resource efficiency, and cost, optimally using supply chains. Presenting innovative, evidence-based, and cutting-edge case studies, with new conceptualizations and viewpoints on management, Smart Industry, Better Management explores concepts in product systems, use of cyber physical systems, digitization, interconnectivity, and new manufacturing and product technologies. Contributions to this volume highlight the high degree of flexibility in people management, production, including product needs, volume, timing, resource efficiency and cost in being able to finely adjust to customer needs and make full use of supply chains for value creation. Smart Industry, Better Management illustrates how industry can enabled by a more network-centric approach, making use of the value of information and the latest available proven manufacturing techniques