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.
