Finished Goods Logistics
Numerous manufacturers are facing delivery challenges due to a range of factors: the shift to e-commerce has made demand more uncertain and volatile. Customer expectations are on the rise, including a growing demand for sustainability. These challenges contribute to transport inefficiencies, such as suboptimal pallet and truck utilization.
ORTEC provides solutions to establish efficient and sustainable logistics for finished goods. The process begins with capacity planning for the upcoming period, taking into account forecasted demand, frequency, and delivery patterns. Efficient routes are then generated based on actual orders, utilizing integrated routing and loading optimization that considers various complex constraints. The goal is to maximize pallet and truck utilization while minimizing empty mileage. Accurate information is shared with customers, as well as when plans are re-optimized during execution based on real-time data. This actual data is utilized for learning, helping to refine stop times, driving times, and other master data.
The Challenges
- Continuously reduce distribution costs per unit (typically per carton)
- Manage the complexities arising from an increased number of SKUs, customer locations, and carrier partners, finding the balance between costs and service levels
- Provide predictable and accurate plans to facilitate efficient logistics execution through integrated routing and loading optimization
How We Add Value
- By optimizing palletization, routing, and loading for distributing products to distribution centers and customers
- By fostering collaboration between manufacturers, carriers, drivers, and consignees through a unified cooperation interface
- By establishing supply chain visibility and process standardization during both planning and execution phases
- By cultivating an environment of continuous improvement by leveraging insights from actual operations to identify opportunities
Benefits
- Realize substantial cost savings in terms of time, materials, and resources needed for planning and execution, typically ranging between 5-15%
- Increase customer service, by fulfilling delivery wishes and providing accuracy and transparency
- Reduce errors, minimize goods damage, and enhance partner satisfaction with streamlined automation
- Support strategic decision-making with access to analytical insights
