Logistics Data Analysis Methods, Procedures, and Utilization To Menu_

jp | eng | tw ___ By Logistics Technology Institute

2. Data Analysis Methodologies and Procedures

2-8. Analysis Procedures and Practical Approach (Detailed Technical Explanation)

To derive absolute numerical grounds (facts) in distribution center system design and engineering proposal writing, data analysis proceeds logically and thoroughly according to the following 9 steps. The purpose and specific practical operational logic of each step are explained below.

  1. Step 1: Data Organization and Import into Database (DB)

    Raw source data (raw data) provided by customers—such as historical shipping data (CSV/Excel format), product masters, and destination masters—almost always contains mixed notation inconsistencies, duplicates, format mismatches, and non-standard characters. First, after organizing these inconsistencies (data cleansing), import them into a database (Access, SQL Server, etc.) adept at high-speed processing of large-volume data.

    Regarding Tera Calculation specifications, against a completely initialized (empty state) database environment, data is stored into the "T000_ShippingData" table based on a unified import format. At this stage, control totals (total count/quantity) of data row counts (record counts) are recorded to establish benchmark values for double-checking whether data omission or calculation inconsistencies occur in subsequent aggregation steps.

  2. Step 2: Linking Multiple Files (Relationships) in DB & Physical Unit Conversions

    Primary joining (relationships) is established between imported shipping data in the database and product masters (case pack quantities, pallet case stacking quantities, outer case volumes, case gross weights) or destination masters using key items (product code, destination code). By linking physical attributes such as dimensions and weight to mere order line item information, visualization of physical quantities necessary for logistics system engineering becomes possible for the first time.

    Through automated calculation processing in Tera Calculation, "Converted Case Values (piece quantity ÷ case pack quantity)," "Pallet (PL) Converted Values (converted case value ÷ PL stacking quantity)," "Converted Volume Values (converted case value × case volume)," and "Converted Weight Values (converted case value × case gross weight)" are calculated in batch per shipping line item record. Through this, order quantity (piece count) information is completely converted into spatial and weight volume quantities required to design warehouse space, storage racks, and material handling equipment.

  3. Step 3: Aggregation and Determination of Analysis Target Day (Design Benchmark Day)

    Utilizing database queries, multi-faceted volume aggregations (shipping line counts, case counts, PL counts, volume amounts, etc.) are executed across yearly, monthly, weekly, daily, and hourly time slot axes. This visualizes the swing width and peak characteristics of "shipping fluctuations (volatility)" driven by seasonal factors, end-of-month surges, weekend concentrations, and sale periods.

    The greatest point in design is not conducting facility design aligned with the annual maximum peak day. Determining equipment or square footage aligned with maximum peak days creates vast wasted space and excessive machine investment during off-peak periods, resulting in an extremely uneconomical distribution center. Therefore, Tera Calculation selects a leveled "weekly average day" or "standard high-load day (target day on a specific day of the week)" rather than weekly maximum peak days as the system design benchmark day. Regarding excess volume on peak days, company-wide agreements are formed to cover it via software aspects (operations), such as extending working hours, temporary staffing increases, spot utilization of external warehouses, and advanced shipping operations.

  4. Step 4: Creation of Logistics Flow Diagram and Verification of System Concept Flow

    Organize the series of physical operational lines in the target distribution center (inbound, inspection, put-away, storage, replenishment, picking work, sorting, packing, outbound staging, loading) and create a visual "Logistics Operational Flowchart."

    Visualize inbound packaging conditions (whether palletized or mixed-case inbound), automated replenishment routes from storage areas, and volume line branching passing through operational racks (flow racks or medium/light-duty shelving). Structuring this material flow in advance makes the system concept extremely clear regarding aggregation categories for the next EIQ analysis and which equipment should be placed in which process.

  5. Step 5: Creation of Future Vision Data (Target Day-Based Adjustments)

    Designing a new center based solely on raw historical volume data (current status data) prevents accommodating business growth or product handling shifts after startup. Therefore, target day data determined in Step 3 is multiplied by fluctuation parameters based on future business plans to generate "Future Vision Cargo Volume Data."

    Specifically, elements such as "annual shipping growth rate (%)" based on management plans, "expected increases in active item (SKU) counts," "fluctuations in destination (store/client) counts," and "seasonal product lineup shifts" are mathematically incorporated. Using this future adjustment data as the baseline for aggregation enables the design of a distribution center possessing scalability capable of withstanding business expansion 3 to 5 years later.

  6. Step 6: Execution of EIQ Matrix Analysis & Equipment Allocation for Target Days

    Against target day data incorporating future visioning, execute "EIQ Matrix Analysis," the core feature of Tera Calculation 1. Unlike conventional ABC analysis (3 rank classifications on a single axis), volume is aggregated and classified into a "25-block matrix table" intersecting item ranks (5 classifications) and destination ranks (5 classifications).

    【Detailed Mechanism of EIQ Matrix and Material Handling Equipment Allocation】

    • Decisive Advantage of 25-Block Division: Accurately captures two-dimensional flow lines such as "how much high-moving Item A1 flows to high-moving Destination A1." This enables shortening travel lines per zone and concentrating high-efficiency equipment placement.
    • Complete Automated Separation of Case and Piece Shipping: Because case operations and piece operations differ completely in distribution center operations, data is automatically separated into "Whole Case Shipping" and "Fractional Piece Shipping" for separate matrix aggregations.
    • Interactive Allocation of Equipment & Machinery: Optimal storage and operational equipment (AS/RS PL_AS/RS, mobile racks, flow racks, medium/light-duty shelving, automated sorters, etc.) are assigned to each item rank in the EIQ matrix table. Through this, volumes passing through each piece of equipment (case counts, pallet counts, picking line counts, volume) are directly calculated.
    • Clear Management via Rank Codes: Explicit naming conventions like "CケE_A1" (Case Shipping / Case Conversion Key / Destination Rank A1) or "B行I_A1" (Piece Shipping / Issue Frequency Key / Item Rank A1) allow unambiguous identification of attributes in complex aggregation tables.
  7. Step 7: Estimation of Inventory/Inbound Volumes & Time Schedule Verification

    From historical shipping data, back-calculate and estimate "theoretical inventory storage volume" and "daily appropriate inbound volume" required for the center based on mathematical logic.

    Inventory Volume During Stable Operation (Theoretical Storage Volume) = Safety Stock + (Fluctuating Inventory ÷ 2)
    * Fluctuating Inventory = Maximum Inventory - Safety Stock (Daily shipping volume uses average value of all historical data)

    【Inclusion of Dead Stock & Time Schedule Verification Details】

    • Remedial Correction for "Dead Stock (Non-moving Items)" Unlisted in Shipping Data: Low-moving, dormant inventory items (SKUs without allocations) with zero shipping history during analysis periods represent major factors squeezing storage area. Tera Calculation automatically calculates inventory by adding these non-moving items into "Rank D" of piece shipping, accurately estimating total center storage volume and required rack counts.
    • Bottleneck Verification via Operational Time Schedule Charts: Simulate hourly processing capacity for each process from inbound dock receipt to inspection, replenishment, picking, sorting, packing, and loading onto outbound trucks. Calculating backward from outbound truck departure times and accounting for time lags occurring between work start/end times of upstream processes (picking/replenishment), rigorously verify whether balances between required processing volume and equipment capacity break down.
  8. Step 8: Data Export and Customization to EIQ Analysis and EIQ Matrices

    Directly export various analysis results completed on Tera Calculation (simple shipping data aggregation, EIQ scatter plots, 25-block EIQ matrix tables, equipment allocation volume tables, inventory/inbound estimation tables, etc.) from the system into Excel format via DataGridViews.

    【Excel Export & Custom Charting/Tabulation Processes】

    Result data exported from Tera Calculation is organized not only as actual numbers (case counts, piece counts, volume m³, weight kg), but also as constituent percentage (%) data taking total volume as 100%. Based on this exported data, practitioners freely create presentation graphics and custom summary tables like the following:

    • Cargo Volume Fluctuation Graphs (Daily, Monthly, Hourly): Comparison graphs visually highlighting gaps between peak days and target days.
    • Pareto Charts (ABC / 5-Stage Cumulative Ratio Graphs): Cumulative curves indicating concentration levels (application of the 80/20 rule) of items or destinations.
    • 25-Block Heatmap Tables: Visualized tables color-coding volume concentration areas in EIQ matrices (A1×A1 zones, etc.) to convey insights intuitively.
    • Processing Capacity Pie Charts by Material Handling Equipment: Pie charts indicating volume ratios assigned to AS/RS, mobile racks, and flow racks.
  9. Step 9: Full Reflection into Proposal Documents (Preconditions & System Design Basis)

    Consolidate and publish the charts, tables, and numerical data beautifully visualized and structured in Excel in Step 8 into Chapter 1 "Precondition Settings" and Chapter 2 "System Design Basis (Equipment Selection & Required Area Calculation)" of the logistics system proposal document.

    To questions like "Why is this automated warehouse necessary?" or "Why does it require this number of shelf tiers / square meters?", presenting quantitative justification that is completely data-driven (fact-based) rather than intuitive or rule-of-thumb completes the highest quality proposal document offering overwhelming persuasiveness and trust to customer executive teams and logistics managers.