Fulfilment :

Metrics, objective, and Problems

 KPI’s:
Cost, time
Shipping cost
Inventory cost
Warehousing cost
On-time delivery
 Typical problems:
Fulfilment diagnostics
Distribution and logistics planning
Transportation management
Logistics network design
Objective: fulfil demand timely and cost efficiently
 Pain points
Large-scale logistics systems are susceptible to disruptions and may perform poorly or even
break down from time to time.
Such systems are very complex, and thus it is hard to identify the root cause(s) and thus
manage, stabilize, and improve the system performance.
 Analytics solutions
By analysing the fulfilment performance data in connection with various factors, one can
quickly identify and pinpoint the most likely cause(s)

Diagnostics of A Logistics System

 Fulfilment performance of spare parts

 Customer service targets
High priority parts 85% On time/1 day
Routine parts 85% On time/3 days
Overall fulfilment performance is not up to service target.

Root Cause Analysis I: Inventory

Actual fulfilment time can be greater than the Lead Time (LT)

Fulfilment time at 0 inventory. The chance is hight, 7.41%.

Also note the fulfilment time can be as long as 1.105 days.

Fulfilment performance by year – In 2012, Demand Almost Doubled

Root Cause Analysis II: Traffic