Wednesday, May 22, 2024


Covid19: Worldwide & Local Supply Chain Disruptions

Immediate Challenge for Supply Chain Logistics

Change in demand & supply patterns
- Shut down of schools, offices, malls
- More work, study, quarantine at home
- Incremental shut down or restrictions as new infections / clusters appear

Delivery pattern is changing rapidly
- Consumptions moving to e-Commerce as brick-and-mortar shops shut down
- Consumptions moving to close-to-home locations, as consumptions in urban areas reduces

Impact on logistics
- Significant shock to transportation arrangements that have evolved over the years
- Some areas suddenly lesser demand / other areas large increase in demand
- Business move to cyber channels to compensate business loss in traditional channels

Some Comments from Our Customers

"One of the biggest challenges is breaking down demand visibility into transportation capacity needs"

"Capacity constraints prevents all demand from being met. Need to prioritise demand and whether to do inbound, or outbound or both etc."

“… are starting to restrict trucks to be permitted in some cities and restricting certain truck types"

"Parameters for planning are continually changing, due to daily rule changes making planning with fixed parameters difficult"

Business Need to Adjust in 2 Ways. Quickly.

Operational reaction
- Need to react quickly based on existing resources
- Large changes is happening everyday. How do we adjust transport plan daily if customer suddenly increase order or cancel order?
- How many more trucks / truck sizes will be needed?

Preparing for different outcomes
- Understand potential scenarios and prepare resources for different outcomes
- Changes are unpredictable
- Best case scenario (quick recovery) vs worst case scenario (prolong virus spreading) How should logistics team prepare in terms of transportation arrangements

Offer Scope - COVID19 Transportation Modeling

Modeling customer’s transport network (fleet, constraints, capacity, costs, …)

Modeling your demand/ shipment for the next planning period (week or day)

Model will generate optimum transport plan based on various scenarios, giving you insights to -
- How is COVID-19 affecting my transport and warehouse capacity?
- How much will addition of transport capacity cost?
- How will a mode shift affect cost?

Service Offering - COVID19 Transportation Modeling

Software based on Blue Yonder Cloud Transportation Modeler

This is a limited-time offer. Customers can sign-up before 31 July 2020

Customer has access to solution for 120 days from day of signing

After data provided from customer, transport model will be up and running in about 5-7 business days

Customer accessing TMODELLING need to have SSO capability for accessing the application on BY cloud.

Engagement & Usage Process

Scenarios Covered as Part of Offer

Example : Understanding Capacity Requirement

Example : Comparing Truck Requirements Across Scenarios

Example : Comparing Multiple Scenarios and Planning Logics

Project Deliverables

Limitation / Assumptions

Limited number of carriers (up to 5 carriers) where capacity needs to be considered across carriers
- Primary carrier and 4 secondary carriers

Flat point to point rates or distance based rates with stop off charges

Data Templates provided would limit type of data to be loaded

Load building by weight, volume, pallets or pallet spaces only

Consulting Support

For the first round of modelling, remote support of 5 days will be provided to the customers
- Expectation is customer would have the data set ready in the prescribed format or in TMOD
- Support provided to
  - Verify initial data set up
  - Fine tune the solution

After the first week, ad-hoc support for an hour (20 hours of ad-hoc support)
- To troubleshoot issues
- Understand specific outputs
- Fine tune strategies

Commercial & Terms

Blue Yonder Covid19 Offer

- US$15,000
- Includes 60 Hours of remote Blue Yonder consulting
- Offer expires 31 July 2020
- Service will be valid for 4 months
- Price includes local first level support
- We will provide support in Bahasa Indonesia

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