Nr Code Business location 1. BH2 Belo Horizonte 2. BSB Brasilia 3. CPQ Campinas 4. CWB Curitiba 5. POA Porto Alegre 6. REC Recife 7. RIO Rio de Janeiro 8. SAO São Paulo 9. SSA Salvador 10. SSZ Santos 11. URG Uruguaiana Delft University of Technology
Faculty Mechanical, Maritime and Materials Engineering Transport Technology
B.J. Hofstede The introduction of the 9:00 Express Domestic Service for TNT Brazil. Masters thesis, Report 99.3.LT.5232, Transport Engineering and Logistics.
This report presents a graduation project concerning the introduction of the 9:00 Express Domestic service for TNT Brazil.
The report consists of three parts: Marketing Study, Logistics Study and Integration. The integration part combines the results of the marketing study and the logistic study.
The result from the marketing report is a list with pre-selected business locations to be included in the 9:00 Express Domestic service. The result from the logistic study is a logistic system that can process the shipments. The connection to the business locations is part of the logistic system. A consolidated linehaul and a direct linehaul are presented as option.
First, the marketing and logistic results are analyzed on volume, service level and cost. Based on this analysis, a final selection is made from the pre-selected business locations. In order to reduce costs, only consolidated linehaul have been selected.
Based on the logistic opportunities in the Sao Paulo region, extra business locations have been added.
The 9:00 Express Domestic service is compared to the other services TNT is currently offering. Based on combination of linehauls, costs can be reduced. Further research is necessary on this point.
The results of the project are discussed and conclusions are drawn. The fimal conclusion is that the selected business locations should be included in the 9:00 Express Domestic network. This network should be operated with the designed logistic system.
Marketing Study
The 9:00 Express Domestic service for TNT Brazil is part of the PPP-project that is implemented by TNT. Since 9:00 Express Domestic is a new product on an existing market, the strategy will be followed of product development. The existing market is based on 40 business locations in Brazil where TNT is represented. The goal of the marketing study is to select the most interesting business locations from this market where this service should be introduced. The selection is based on a quantitative and a qualitative research.
The quantitative research has been done with the TNT database. This database with domestic shipments has been updated and analyzed. The business locations were sorted by amount of flow. Based on this analysis, the top 10 business locations were selected for the new service. The flow between only these 10 business locations is 50% of the total domestic flow.
The qualitative research was based on interviews with TNT marketing and sales staff. They have been interviewed to cross check the results of the quantitative research. Based on the outcome of the interviews, the business location Brasilia has been added to the list of selected business locations. Finally, 11 business locations are pre-selected as business locations
for the introduction of the 9:00 Express Domestic service in Brazil. In order to provide the 9:00 Express Domestic service, the preselected business locations must be linked in a logistic network. This network and the logistic procedures involved are presented in the logistic study.
Logistic Study
First the logistic system is defined on inputs, constraints and controls, architecture and outputs. Then, the basic postal elements (J.T.W. Damen Flexible mail processing; an application of integral postal engineering, PhD thesis Delft University of Technology (1994)) transporting, buffering, unpacking, merging, splitting and buffering are described. Two communication elements, 'read' and 'write', have been added for explicit communication. This way the logistic system can be designed in an abstract way using only 8 elements.
The service level of 9:00 Express Domestic requires fast operational procedures in order to reduce the total transportation time. This transport time must be reduced in order to make the pick up time for the shipment as late as possible. In order to speed up the current process, pre-sorting has been introduced. By pre-sorting, the 9:00 Express processes can be much faster because shipments with higher service levels are sorted first.
The logistic system has been split into three interrelated subsystems: 'pick up', 'network' and 'delivery'. The subsystems have been designed in the opposite a order of appearance in the process. This is because the output of the system is fixed and the input is variable.
The subsystems have been linked by linehauls. These linehauls have been selected from a flight database. The options for a consolidated and a direct flight are given. The results of these options are displayed by presenting the cut off times.
In general, three consolidated linehauls are presented for each associate. These linehauls are sent to SAO where the shipments are sorted and redistributed. From SAO, one consolidated linehaul for each business location is chosen. In conclusion, each associate has three outgoing linehauls and one incoming linehaul each day. As a result, about 40 linehauls are selected for the fixed embarkation network.
The system has been analyzed for risk. This is done by stepping through the system on a 'what if' basis. Each subsystem is analyzed and the backup flights are checked.
No discrepancies have been found in the design of the system. However, the system will have to be tested thoroughly before the project is initiated. The designed logistic system can be used for further study.
Reports on Transport Engineering and Logistics (in Dutch)
