IT SYSTEMS FOR ADVANCED OPTIMIZATION

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IT SYSTEMS FOR

ADVANCED OPTIMIZATION

Don’t Compromise - Optimize!

Efficient Yard Management for a Modern Hub

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Agenda

INFORM GmbH

Company Profile

Software Solution SyncroTESS

Real-time Optimization for Hubs

Benefits

Modern Hub Management with SyncroTESS

Case Studies

Hermes Logistik Gruppe – Parcel Centers

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Advanced Optimization Systems

are capable of making “sensible decisions”,

•situation responsive

• supporting the user with best proposal

Classic IT systems are designed to handle

“administrative” business processes with

user making decisions based on their capabilities.

Company Award by the German Association for Operations Research

in 2006

Technology: mathematical optimization

(Operations Research, Fuzzy Logic, Computational Intelligence)

Intelligent Decision Support Systems

Transactional Information Systems e.g. Oracle/ JDE, SAP, WMS

IBM ….

INFORM – Core Competences

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40 km

15 km 20 km

15 km

Total empty travel:

Reduction > 50%! 90 km!

100 km

70 km

Total empty travel: 205 km

10 km

25 km

Logistics - Realtime-Optimization

1. Rule: ”Choose the closest follow up job“ Order 1 Order 4 Order 2 Order 3 Order 1 Order 4 Order 2 Order 3

2. Optimized allocation with SyncroTESS algorithms

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Leerchassis-Ausgleich (GEO)

Warehouse

Leercontainerlager

Leerchassislager

Gleisstellplätze

Chassisbedarf Stellplatzbedarf

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transport-orders; long distances

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Leerchassis-Ausgleich (GEO optimiert)

Hofstellplätze

Leercontainerlager

Leerchassislager

Gleisstellplätze

Stellplätze

Übermaßcontainer

Chassisbedarf Stellplatzbedarf

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optimized transport-orders

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Orders V ehi c les

_x

x

Optimization

•

Idealized simple planning problem: Assign n jobs to m vehicles Constraints: exactly one job per vehicle;

every job assigned Objective: minimize the total cost

•

Assume there are 60 jobs and vehicles. Can’t we simply enumerate? 60! = 60 x 59 x 58 x ... possible plans

60! = 8,3 x 1081

There are approximately 1078 _{atoms in the universe!}

•

Sophisticated OR algorithms can solve such a problem within seconds! For very small, idealized problems, we can even prove optimality.

•

Real problems are much more complex (e.g. 2,000 rather than 60 jobs)

Guaranteed optimality is often out of reach and we must use heuristics in order to approximate ---the optimal solution

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1969 1985 2010 50 100 150 200 250 300 350

• today more than 350 employees

• key focus: sustainability

• specialty: quantitative optimization logic

• best-of-breed solution as add-on to existing IT

• established 1969 as spin-off from Aachen University

• since 1985 approx 22% revenue growth per year

• organic growth, since 1985 always profitable • private ownership including directors

and more than 50 long time staff

INFORM at a glance

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Cheshire UK

• Headquarters in Aachen

• Offices in Germany, UK, United States • Export quota > 50%

• Projects in Europe and worldwide • Employees from > 30 nations

Chicago United States

Aachen, Frankfurt Germany

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Logistics Industry logistics Airport logistics

Materials management Production Risk & fraud

• Maritime and Inland Terminals • Parcel, Hub, DC and Dry Ports • Retail and Pooling

• Building Materials Logistics

• Inventory Optimization • Demand Planning • Inventory Sampling

• Ground Handling

• Airport Resource Management • Airline Hub Operations

• Advanced Planning (APS)

• Capacity Planning • Production Control and

Optimization

• Internal Transportation • Supply / Inbound Logistic • Automotive

• Healthcare

• Fraud Prevention

• Intelligent Claim Evaluation • Internet Banking & Payment

Risk European Intermodal Award 2002 e@logistics award 2010 e@logistics award 2008

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Adherence to delivery dates? Flexibility? Through-put times?

Focus on costs

Conflict of goals

Costs

Services

Conflict of Goals

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High adherence to delivery dates High flexibility Short through-put times

Focus on service

Costs

Services

Conflict of Goals

Minimize idle times at loading gates Reduce dead-heading Minimal capacity utilization

Conflict of goals

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Real-time dispatching of in-plant transportations

• steel works in the USA, 25 vehicles (trucks + straddle carrier)

• about 3,600 transportations/day (ad-hoc, with priorities, deadlines) • optimization of sequences and allocation of resources

Outcome in the first year:

adherence to schedules: 97%

cost saving: $ 918000 p.a.

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INFORM Optimization systems are used by more than 1,000 companies worldwide

Daimler AG

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Agenda

INFORM GmbH

Company Profile

Software Solution SyncroTESS

Benefits

Case Studies

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HUB Logistics

Control Center Storing Positions Truck In-Gate Rail Terminal Truck Out-Gate Sorting Center Shunting

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Need for Action

Drawbacks of manual yard management are:

• Time-consuming and troublesome procedures • Too many variables have to be taken into account

• Intransparent and sub-optimal decisions may be taken

• Transport operations can often not be retraced since they are not documented properly

• Sorting centre activities and yard processes are not synchronized

Leading to:

• Employment of more resources than necessary • Reduced quality of service

• Decreasing on-time deliveries

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Solution Areas – Gate

Harmonize the receipt of external trucks

• Transparent overview of incoming transports

• Drivers waiting room: visual display of drive-in clearance • Registration of arriving trucks

(manually or automated via communication panel) • Scheduled / actual data comparison

• Printout of the terminal route card for truck drivers upon arrival at gate

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Solution Areas – Yard

Shed light on your yard

• Status of storing positions (e.g. free, occupied, reserved, blocked)

• Position and status of all loading units (color key displays e.g. inbound, outbound, loading, information about origin/destination, content)

• Gate occupancy including destination and departure time of the next transport to this destination

• Visual image of train tracks, rail cars and loading units

Let the trucks flow in the hub

• Allocation of loading docks

• Allocation of storing positions for loading units

• Automated generation of optimized driving jobs for internal trucks • Order transmission via mobile terminals (GPRS, WLAN, etc.)

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Solution Areas – Sorting Center

Being up-to-date at the loading bays

• Automatic status report of the loading bays (available/occupied) e. g. via external sensors

• Automated transport orders to unoccupied outbound loading bays with empty swap bodies, containers etc.

Get the sorting center involved

• Center staff collects data via mobile terminals (WLAN) - Status of loading/unloading,

- Relevant dispatch information (e.g. seal no., loading equipment, content, fill rate)

• Relevant dispatch information is displayed on monitors (e.g. transport destination, departure time, priority)

• Integration of forklift truck operation (loading small load carriers in swap bodies, containers etc.)

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Solution Areas – Railway

Get the rail connected

• Receipt of access signals and transfer of shipping signals

• Automatic generation of optimized driving jobs for railway cranes • Automatic registration of carriages and swap bodies by reading

out RFID-transponders

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System Architecture

RailControl GateControl Core & GUI YardControl

VehicleControl CraneControl

Functional Modules Resources

manually operated auto-mated manually operated manually operated Order Entry manually operated IT Integration Web Data Radio Data Entry Modules RF RFID Data Radio Barcode GPS Com-module

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Agenda

INFORM GmbH

Company Profile

Software Solution SyncroTESS

Real-time optimization for Hubs

Benefits

Case Studies

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Case Study – Hermes Logistik Gruppe Deutschland

• Annual transport volume:

- 44.000 truck tours

- 256 mio. shipments

• More live systems under construction

for two more additional sites

Live systems at

• West HUB Hückelhoven

- approx. 50 mio. parcels per year - running since 2008

• Central HUB Friedewald

• North HUB Hanover

• East HUB Haldensleben

- approx. 56 mio. parcels per year - Go-Live Summer 2011

• HUB Ohrdruf

- Bulk goods / Out-of-gauge - Go-Live Summer 2011

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Case Study – Swiss Parcel Post

• Annual transport volume: - 13.5 mio. km, road

- 27 mio. km, track - 150 mio. parcels

• Intense fluctuations (Christmas etc.)

Live systems at

• Härkingen Parcel Center

• Frauenfeld Parcel Center

• Daillens Parcel Center

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Case Study – Swiss Parcel Post

Need for action

• Per distribution center: 1.000 swap body movements (2.000 in peak times)

with 4-6 vehicles per location • 70.000 m² site

• 100 swap body buffer parking sites

• 500 crane swings with 2 railway cranes (RMG) • 40 trains with 200 wagons on 4-6 tracks

(half-train 300m)

• 150 trucks are attended at 3-4 truck gates • First priority: punctuality and service quality

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Case Study – Swiss Parcel Post

Solution

• Deployment of one SyncroTESS per hub including: - yard optimizer

- vehicle optimizer - rail crane optimizer

• Inter-Hub communication between SyncroTESS systems • Full integration of all third party systems

• Application of RFID-transponders for identification (container and railcars)

• Radio data transmission for communication • Automatic dispatching

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Agenda

INFORM GmbH

Company Profile

Software Solution SyncroTESS

Benefits

Case Studies

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Salvage Treasures!

Enhance Efficiency Cut Down Operational Costs Do More with Less Boost Velocity Save Time and Money

Get Ahead of Competitors

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After: Transparency

>> With SyncroTESS we are straightaway on the pulse

of our operations. <<

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Solution: SyncroTESS

• Automates gate processes and check-in to a large extent

• Sheds light on your yard by providing real-time information of all yard movements

• Automatically sends transport orders and lets the trucks flow in the hub

• Gets the sorting center involved via mobile terminals • Is up-to-date at the loading bays

• Gets the rail connected and controls the cranes

Advantages:

• Tunes, controls and synchronizes all processes

• Gets the best result with regards to overall goals & limiting conditions • Ensures visibility, documentation and transparency of all yard

processes

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Benefits of a Modern Yard Management with SyncroTESS

>> Since introducing SyncroTESS, the time needed for replacing a full-swap with an empty one at the loading bays has decreased considerably to one-third within the last year. <<

Sven Klimpel, Managing Director Central HUB, Hermes Logistik Gruppe Deutschland

• Improve management processes and decrease overall shipment time

• Increase turnover while balancing costs

• Intelligent software can enhance processes and increase throughput without using extra manpower or purchasing

expensive new equipment, saving postal companies time and money

• Optimizing operational efficiency, postal companies see an increase in cost efficiency

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