BPS Global Awarded a China Project from a Sizable Pharmaceutical Logistic Company in Guangdong Province

BPS is proud to announce that we awarded a tender of a China project which is a sizable pharmaceutical logistic company in Guangdong Province. This enterprise has established a professional medical warehousing and transportation network in the Guangdong and Guangxi regions. It provides one stop logistics services for all three tier cities in the province, commercial, medical institutions, retail, and medical equipment dealers. In order to fulfil the needs for future business growth, BPS helps the enterprise to optimize its existing warehousing and transportation network. The purpose is to scientifically layout the warehousing network and rationally design the functions of each warehouse according to historical data and trends. The goal of optimizing the overall logistics operation is to achieve cost reduction and improve logistics service performance.

The project area includes:

• Distribution / Logistics Center Layout Optimization
• Warehousing Automation Construction and Conceptual Planning Design
• Logistics Informatization
• Transportation Network Optimization Proposal
• Logistics Cost Optimization

BPS helps the client to optimize the logistics network design and at the same time lower both operation cost of warehouse activities and transportation as well as enhancing the logistics service quality. As a sizable pharmaceutical logistic company, their customers have high sensitivity on delivery lead-time. BPS proposed some models to build the logistic network which can satisfy their delivery lead-time requirement and deliver the goods at the least cost. We also helped client to find out the best location and number of distribution centre (DC) by conducting lot of data analysis. We studied a large number of historical order information to investigate the pattern of delivery locations, delivery frequency, volume, weight, quantity, travelling distance, SLA etc. By using hierarchical clustering, we are helping the client to define the cluster of pharmaceutical locations to build the distribution centers.

In this project, the biggest challenge is to optimize the route-planning for over 10,000 delivery locations. With assumption of each driver has 25 job order per trip, i.e. 50 waypoints (From & to), a matrix to complete only 1 driver route will be 50 x 50 = 2500 possibilities. There will be over one hundred drivers to deliver goods which means over hundreds of thousand possibilities of routing. As a result, an algorithm is built for route-planning with our team’s efforts.

BPS will apply TMS planning tool to help client improve management for their daily distribution order between warehouse and DC as well as from DCs to the different delivery points. In next stage, we will start consultancy works to review all the automation layout design in logistics centre.