The Logistics Business completed a project to model a same day delivery transport network for Phones4U. The project provided the client with the infrastructure, stock holding and costs of a network of hubs and delivery vehicles to provide a same day delivery service anywhere in the UK. Our iFlow Suite of Modelling Tools was used to develop the supply chain network and costs.
Geographic Models – initially data on the existing operations was collected and analysed to understand customer demand across the different geographic and demographic areas within the UK. This demand information was modelled geographically to plot demand density and establish the optimum locations for transport hubs. Vehicle drive times to satisfy customer demand and inbound transport times were taken into account within the models. The geographic models were used to determine the optimum delivery routes taking account of mileage, time taken, number of drops, stem mileage, average speeds and time with the customer.
Supply Chain Models – the information generated from Geographic Models provided the base data for the Supply Chain Model. These models provide information on volumes and products moved within the network and stock holding at National Distribution Centres, hubs and delivery vehicles. The sizes and functions of each of the facilities was determined from this information, as was the optimum vehicle types in the different parts of the network.
Cost Models – information on the physical movement of products from Supply Chain Model is integrated with the Cost Model. This provides detailed information on the total delivery costs to each customer. These costs are broken down into the different elements of the supply chain such as vehicle costs, driver costs, hub handling costs, inbound transport costs and cost of stock, etc. All models are driven by a comprehensive set of parameters that give the user with the ability to chance volumes of demand, stock levels, vehicle speeds, road congestion, time with customers etc. Peak periods during the year and seasonal demand patterns were all taken into account.
Reporting Functions – the reporting capabilities within iFlow enable tables of results to be produced to understand the effects of parameter changes on service levels and costs. These reporting facilities were one of the key tools in defining the optimum supply chain to provide the same day delivery of electronic devices for Phones4U.