Canadian Tire is one of Canada’s largest companies. They operate four large distribution centers service over 470 tire retail outlets. They recently installed a Yard Management System (YMS), which they have integrated with their Warehouse Management Systems (WMS) and Transport Management System (TMS) systems. Their expectation was improved performance in over-the-road transportation equipment utilization, driver productivity, and warehouse dock/door utilization. As a relatively new logistics employee, you have been asked to develop an evaluation system to measure operational productivity improvement. While management does not want a financial impact evaluation, they are interested in developing benchmarks to measure initial and sustainable productivity improvement. You have the job-how would you proceed?

Provided in the explanation section

Explanation:

A YMS acts an interface between a WMS and TMS.The evaluation system with the key performance indicators are mentioned in the table below.

NOTE: The analysis follows in this order given below

Metric 1

Trailer utilization

Description :This captures the status of the trailer whether it is in the yard or is in transit

Comments : Helps in measuring the trailer productivity on a daily ,weekly or monthly basis

Metric 2

Driver utilization

Description : This captures the status of the driver whether the driver is in the yard or is in transit

Comments : Helps in measuring the driver productivity on a periodic basis

Metric 3

Trailer sequence

Description : This captures the order of movement of trailers in the yard on a given day, week or month

Comments : Helps in measuring the order fulfilment efficiency i.e. whether the priority orders have been serviced first or not

Metric 4

Total time in yard

Description : This captures the time spent by the trailer in the yard from the time it enters and leaves the yard

Comments : This helps in measuring the time taken to fulfill a particular request

⇒ Capturing these metrics need inputs from both WMS and TMS, and also the trailers need to have RFID tags attached to them.Then compare these performance metrics with the ones prior to the deployment of YMS to identify the percent gains in the overall operational productivity.

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