2001- United States Cold Storage
OptiLogix On Demand
 
 
  The Company
 


United States Cold Storage is a leading nationwide provider of supply chain solutions with over 105 million cubic feet of refrigerated storage space. Their logistics network consists of 30 full service refrigerated warehouse and distribution centers located strategically across the US.

   
  Goals and Issues
 


With the ongoing growth of their business operations and network comes the need to evaluate new business opportunities and their impact at both the strategic and tactical/routing levels. In order to quote a price to a potential new client, they needed to quickly analyze historical data in often non-standard formats and then make a proposal that would result in a win-win situation for both the new client and USCS.

   
  Implementation and Results
 


Instead of acquiring optimization tools and technology and building and maintaining in-house expertise, the organization chose to 'outsource' the task. USCS has utilized the analytical and modeling capabilities of Technologix for the past five years in over 50 unique projects.
To accomplish these objectives, USCS contracted TechnoLogix to provide the analysis and optimization required. To do this, we had to develop a robust framework of programs that could analyze diverse customer shipping patterns.

Routing algorithms were developed to estimate the cost of trips that would combine both potential and existing customer shipments in a pattern that would minimize travel and drop costs and satisfy the constraints of number of drops per load, maximum weight and volume and feasible routes. In addition, what if scenarios are analyzed to compare the best mix of warehouses to minimize overall costs and maximize customer service.

The cache of information that Technologix retains for USCS is also used to help customers refine their networks. It is often used as a resource for logistics professionals to demonstrate that existing programs are appropriate and products are positioned properly. USCS is able to benchmark its own programs to ensure service offerings and costs are on target.

Based on the analysis and results generated by Technologix, USCS has convinced numerous new clients and their product business to switch to using USCS for their cold storage needs.

   
  Our Tools
 
To support USCS in its ongoing review and analysis of new business opportunities we make use of or OptiNet network optimization engine for strategic issues and customized routing algorithms for more detailed routing and costing issues. Mileages from USCS warehouses to customer destinations and from customer manufacturing facilities are generated in batch mode using PC Miler, www.alk.com and stored in a database that currently contains over 4 million unique zip code to zip code combinations.