Using IT-based solutions to improve logistic operations of a scrap collection system

Jenny Díaz Ramírez, Carlos Perez Sandi Treviño, Luis Enrique Orozco Rubio

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Abstract

The study takes place at a steel production company in Mexico, where the market has a deficit for its collection capabilities. This project focuses on the redesign of the logistics system in charge of the collection of raw material, which is done by the company owned fleet. The initial diagnostic phases had the purpose of identifying the root causes of the problem at hand. They involved collecting and analyzing data regarding the providers, processing factories, costs and the process involved with the collection system. The key action taken was to establish a new venture of collaborative economy as a mean for scaling the collection capabilities. In addition, a new planning and operations scheme was implemented using a software application for better routing. It includes a prioritized provider selection based on performance, fleet management, and data gathering with integrated analytics. The results after a pilot period were a decrease in the logistics costs by 14.48%, a decrease in the average kilometers driven per ton by 27.4%, and an increase in collection capacity by 8%.

Original languageEnglish
Title of host publicationProceedings of the International Conference on Industrial Engineering and Operations Management
PublisherIEOM Society
Pages443-454
Number of pages12
Volume2019
EditionMAR
Publication statusPublished - Mar 2019
EventIEOM 2019 - 9th International Conference on Industrial Engineering and Operations Management

: 9th IEOM International Conference
- JW Marriot Bangkok Hotel, Bangkok, Thailand
Duration: 5 Mar 20197 Mar 2019
Conference number: 9
http://ieomsociety.org/ieom2019/

Publication series

NameProceedings of the International Conference on Industrial Engineering and Operations Management

Conference

ConferenceIEOM 2019 - 9th International Conference on Industrial Engineering and Operations Management

Abbreviated titleIEOM 2019 Bangkok
CountryThailand
CityBangkok
Period5/3/197/3/19
Internet address

All Science Journal Classification (ASJC) codes

  • Strategy and Management
  • Management Science and Operations Research
  • Control and Systems Engineering
  • Industrial and Manufacturing Engineering

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  • Cite this

    Díaz Ramírez, J., Perez Sandi Treviño, C., & Orozco Rubio , L. E. (2019). Using IT-based solutions to improve logistic operations of a scrap collection system. In Proceedings of the International Conference on Industrial Engineering and Operations Management (MAR ed., Vol. 2019, pp. 443-454). (Proceedings of the International Conference on Industrial Engineering and Operations Management). IEOM Society.