2017 Amazon - Truck Utilization Team Project

AMAZON SORT CENTER INBOUND TRUCK UTILIZATION

The Challenge:
This project aimed to identify upstream systems and downstream Fulfillment Center opportunities to increase Sort Center Inbound (SCIB) trailer utilization by 5% across the network.

The Solution:
The Tauber team recommended the following Phase One actions over the next six months to deliver 2.6% transportation spend savings through 2020: 1) eliminate ad hoc trucks on non-critical departure times; 2) reduce excess capacity on short haul lanes; and 3) introduce and enforce standard work at the outbound docks through process map visuals (PMVs) and remote technological audits. For visibility of utilization metrics across the network, the team recommended using the control Dashboard built by the team. Deliverables and insight from this project will inform a more comprehensive Phase Two rollout by other teams: a systems integration and systematic automation of FC operational processes over the next 12 months.

Read the 2017 Amazon - Truck Utilization Team Project Executive Summary in the 2017 SPOTLIGHT! book.

Student Team:
Nishreen Ali – Master of Business Administration
Yusuf Ghani – EGL (BSE & MSE Industrial and Operations Engineering)
Arjun Kottana – Master of Supply Chain Management

Project Sponsor:
Maria Lee – Senior Program Manager, Transportation Sustainability

Faculty Advisors:
Mark Daskin – College of Engineering
Brian Talbot – Ross School of Business


About Tauber Team Projects:

The 2017 Tauber Team Projects resulted in $575 million in savings according to sponsoring company calculations, an average of $18.5 million per project over 3 years.

Each two to three person Tauber Team consists of graduate engineering, MBA, and/or MSCM students. Along with receiving high-level corporate support from the sponsoring company, each team is advised by a College of Engineering and a Ross School of Business faculty member and overseen by a Tauber Institute Co-Director. The projects begin on-site in May and continue for 14 weeks.  Students present the results of their projects and compete for over $40,000 in scholarships at the U-M Tauber Institute's annual Spotlight! event, held each September in Ann Arbor, Michigan.  Spotlight! provides outstanding opportunities for students and corporate partners to establish relationships while exploring innovations in operations and manufacturing.
 
Access Spotlight! book for project details.
2017 Amazon Truck Utlization