Arla

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The Challenge

At Arla, 300 vehicles deliver dairy products to approximately 3000 customers on a daily basis. Time windows to make these deliveries are extremely tight, due to strict customer agreements. Providing transparent delivery schedules to customers is a high priority.

How we create value

ORTEC Routing and Dispatch is used for daily operational planning and execution and provides the planner with an accurate and up-to-date planning overview. The ORTEC tactical module facilitates in creating master routes and calculating scenarios.

Benefits

Arla is now better able to meet their client and employee needs as well as strategic business goals with the support of an advanced planning and scheduling system.

Industries

Manufacturing

Logistics optimization produces tangible benefits for Arla

Arla is one of the largest dairy producers and distributors in the world ORTEC has helped Arla to drive efficiency in their supply chain by increasing transparency. Through our cooperation, Arla has been empowered to reduce its environmental impact and use its supply chain as a competitive enabler.

Transparency in a complex and demanding environment

At Arla, 300 vehicles deliver dairy products to approximately 3000 customers daily. Time windows to make these deliveries are extremely tight, due to strict customer agreements. Providing transparent delivery schedules to customers is a high priority within Arla.

Facts and figures

Arla Foods operates 5 large dairies in Denmark
Over 3,000 customers throughout the country
300 vehicles, which annually cover 28 million kilometers
Approximately 550 drivers
4.4 million pallets distributed annually

Tactical and operational route optimization

ORTEC Routing and Dispatch is used for daily operational planning and execution. Integration with both SAP and mobile solutions provides the planner with an accurate and up-to-date planning overview. The ORTEC Tactical Routing module facilitates in creating master routes and ‘what if’ scenarios. State of the art algorithms support the tactical user in the fast recalculation of master routes and other planning scenarios.

Tangible value and a better eco footprint

Arla is now better able to meet their client and employee needs as well as strategic business goals with the support of an advanced planning and scheduling system. This created tangible benefits:

Approximately 8% reduction in total kilometers driven after implementing new tactical routes
Clients experience a more reliable and accurate ETA
Time spent calculating a new tactical plan reduced by 50%
Delivery quality improved overall, resulting in less customer complaints and support hours

Additionally, a reduction of kilometers driven contribute to improving Arla’s eco-footprint. This initiative and other company policies, such as changes to the transport fleet, are helping Arla to achieve sustainability goals.