Optimized Inventory Routing for GreenChem
GreenChem is one of Europe’s largest AdBlue® producers and distributors. Part of AGROFERT Holding, a large privately owned Czech company which employs more than 34.000 people divided over seven business units. The Chemical division, which is almost 35% of the business, contains amongst GreenChem and also has two large urea production companies, which supply the raw material for AdBlue® to GreenChem.
The company produces AdBlue® locally in more than 45 production facilities around Europe and Brazil. This provides a very flexible and reliable asset for the production of AdBlue®. AdBlue®, is a leading solution that is sprayed into the exhaust system of diesel engines, helping to reduce nitrous oxide emissions.
Inventory Routing meets Big Data Analytics
Since 2017, GreenChem has been using ORTEC Inventory Routing for the bulk downstream distribution of this product. About 30 sales representatives and planners, rely on the system to plan and dispatch 100+ vehicles from the control tower in Bratislava. In 2019, after two years of successfully using ORTEC Inventory Routing, GreenChem decided to expand the use of the system to benefit from its enhanced forecasting capabilities and further reduce stock-outs.
ORTEC Inventory Routing uses advanced mathematical models to analyze historical data about product usage to forecast demand for the future. This includes machine learning components to calculate optimized safety stock, seasonal patterns, and the best forecasting model. With the automatically optimized safety stock, delivery volumes are improved while reducing the risk of stock-outs. Thanks to ORTEC Inventory Routing, GreenChem identified a decrease of over 50% in stock-outs.
Scientific algorithms are also used to optimize the route schedule for the vehicles delivering products to the clients. A big benefit of the optimized routes is that fewer kilometers need to be driven to deliver the product. On top of this benefit, GreenChem has improved transport company agreements thanks to a more effective evaluation of their logistics service providers’ invoices. This is expected to yield a 2.5% decrease in transport costs and significantly better rates.
Powerful forecasting algorithms yield optimized inventory routing
To make use of these solutions data is key. GreenChem also wanted to gain more insight into the impact of the solution with a data analytics portal. So, they decided to use the ORTEC Big Data Portal to track KPIs and continuously improve the business. With the portal’s user-friendly dashboards, GreenChem can keep a closer eye on their KPIs. They can quickly identify areas requiring attention and can share reports across the business. The ORTEC Big Data Portal supports improved decision-making in the business by delivering better KPI management.
Planner satisfaction has increased as well, as the plan can be created with significantly less effort. Supported by the cooperation with ORTEC, GreenChem can plan the significantly increased AdBlue® volumes with the same workforce.
