MGMT6080

Case Study 2- SHAMGOL Logistics

You work for a Shamgol Logistics which is a non-asset based 3PL Company. One of Shamgol's major accounts is Shizy Auto which distributes after-market auto parts manufactured by various manufacturers in palletized cardboard packages throughout United States. Shamgol Logistics has a distribution warehouse in Columbus Ohio that is used for re-packaging, consolidation, and redistributions of Eastbound flow of parts. Shamgol hauls all inbound cargo from different locations to Columbus Warehouse and hauls all the outbound cargo from Columbus warehouse to various destinations. The cargo assignments of Shizy Auto during the last week of March are shown below:

Inbound FreightOutbound Freight

Origin City

Weight

Delivery

Service

Columbus, to

Weight

Promised

Service

to Columbus, OH

(lbs.)

Destination City

(days)

Memphis, TN

14,000

27-Mar

TL

San Antonio, TX

130

28-Mar

1-D

Tampa, FL

7,500

27-Mar

LTL

Baltimore, MD

110

29-Mar

1-D

Amarillo, TX

4,800

28-Mar

LTL

Birmingham, AL

6,000

29-Mar

LTL

Detroit, MI

3,200

28-Mar

LTL

Charleston, WV

500

29-Mar

LTL

Shreveport, LA

12,500

28-Mar

TL

Cincinnati, OH

9,000

29-Mar

TL

Buffalo, NY

26,000

29-Mar

TL

Jackson, MS

2,400

29-Mar

LTL

Chicago, IL

19,000

29-Mar

TL

Jacksonville, FL

70

29-Mar

1-D

Pittsburgh, PA

18,000

29-Mar

TL

Knoxville, TN

5,200

29-Mar

LTL

St. Louis, MO

16,000

29-Mar

TL

Charleston, WV

9,500

30-Mar

TL

Indianapolis, IN

6,850

29-Mar

LTL

Dayton, OH

110

30-Mar

1-D

Kansas City, MO

6,000

30-Mar

LTL

Evansville, IN

8,000

30-Mar

TL

Nashville, TN

4,500

30-Mar

LTL

Miami, FL

85

30-Mar

2-D

St. Louis, MO

14,000

30-Mar

TL

Newark, NJ

10,000

30-Mar

TL

Indianapolis, IN

10,800

31-Mar

TL

Philadelphia, PA

125

30-Mar

2-D

Shreveport, LA

3,500

31-Mar

LTL

Charlotte, NC

8,600

31-Mar

TL

Shamgol Logistics and Shizy Auto have agreed to consider loads shipments that weigh less than 8,000 pounds as Less than Truckload (LTL) and larger shipments as truckload (TL).Shizy requires delivery to be completed within designated service time (e.g., 1-D which means the shipment must be delivered in one day from the date it has promised its clients, e.g., promised to be delivered on March 28^th).The capacity of a truck is 40,000 lbs, so Shamgol may not load more than this weight onto a truck. LTL and TL shipments can be consolidated if their total weight does not exceed the capacity of a truck.

You are the traffic manager of Shamgol and your assignment is to find the best "routes and Shipment" combination in such a manner that saves transportation cost without compromising the delivery to Shizy's clients. Inbound cargo flow is independent from outbound cargo flow. You may want to check a map of the United States or watch the posted truck driver Google map so you can explore possible ways to combine shipments for consolidated volumes. The following links can assist you with routing and cost:

http://www.uship.com/shipping-calculator.aspx

https://www.youtube.com/watch?v=PW_ebVv8AU0

You are required to:

1) Identify 3 "routes and shipment" possibilities

2) Compare the costs between consolidated and direct shipment for the shipments

3) Determine the optimal "route and shipments" consolidation plan and justify your choice in terms of cost, haul duration and delivery time.

Source for Exercise: Adapted from "The Definitive Guide to Transportation" Council of Supply Chain Management Professionals and Thomas J. Goldsby, Deepak Iyengar, Shashank Rao (p 85 to 91) Published by Pearson Education Inc. with alteration.