Digital oil lubricates the operational gearbox

With the aim of increasing the efficiency of process performance in the contract logistics area, Schenker Deutschland has been using a decision support tool since 2016. This brings the logic and optimization possibilities of simulation into the day-to-day business of transport and warehousing.

Efficiency through data-based decisions

Decision support systems are software systems that determine, process and clearly compile relevant information within an operational or strategic task and help to evaluate it. The aim is to provide those responsible with a more objective basis for their decisions. Decision support systems include functions for sorting and filtering data, their clear presentation and mathematical evaluation options. Further functions allow the execution of model calculations (scenarios, forecasts) and, depending on the area of application, the use of optimization algorithms.

Decision support in the warehouse

Materialfluss spoke to Thomas Reppahn, Head of Central Logistics Product and Process Management at Schenker Deutschland AG, about the use of decision support tools in contract logistics. In this role, he and his team support and advise pilot projects within the company. He is also responsible for collaboration with the Fraunhofer Institute IML in Dortmund and is a speaker at scientific events on this topic. Most recently at the 5th "Resource-efficient production - added value digital factory" congress organized by the Fraunhofer Group for Production in Leipzig at the beginning of March 2017.

Material flow: A decision support tool needs to be fed. What data is required for use in contract logistics?Thomas Reppahn: It involves numerous input factors relating to daily planning, which are transferred to the decision support tool by the management of a branch or logistics center. These include shift planning, employee qualifications, information on route planning, ramp occupancy and much more.

MFL: How is the data entered? Manually? Via interfaces to existing systems?Reppahn: At the pilot site, some information is already taken electronically from the upstream systems - for example route planning - others, such as shift planning, can be added via Excel uploads.

"The tool provides facts where previously gut feeling played the decisive role."

Thomas Reppahn Head of Central Logistics Product and Process Management Schenker Deutschland AG

MFL: And then the system spits out the finished plan for the day?

No, the tool does not take the decision away from the colleagues, but prepares a decision by the person responsible. However, it does so very clearly and taking into account a large number of parameters and variables. In a first step, the Decision Support System runs the following planning stage - usually a shift or a day - through simulation routines and provides feedback on factors that are critical to success.

MFL: So the tool predicts where there may be real bottlenecks during the day and, if necessary, delays as a result.Reppahn: Yes, but that is only the first step. The final result can be optimized by re-entering planning parameters that have now been improved. This iterative process brings the person responsible closer to the optimum. The final decision for or against the use of appropriate resources is made by the operational manager himself. As I said, the system should support the decisions, not take the decision away."

"Enormous potential in terms of optimized use of resources and quality improvement"

MFL: But does it really oversee more than an experienced dispatcher or operations manager?

The tool provides a fact-oriented basis for decision-making, where previously "gut feeling" played the decisive role. In our business, experience is a valuable prerequisite for making the right decision. However, there are always new requirements or changing framework conditions where tried and tested decision-making and action patterns are no longer sufficient. In practice, it is clear that such a tool represents "new territory" for experienced users in established environments, which is met with a mixed feeling of skepticism but also curiosity. Once initial reservations have been overcome, there is enormous potential in terms of optimized use of resources, increased quality and risk avoidance.

MFL: Are you using standard software for this tool?Reppahn: The tool, which we are currently testing as a pilot, was developed and implemented by us together with specialists from the Fraunhofer Institute for Material Flow and Logistics in Dortmund. In particular, the supplementary warehouse assistance system, which controls the inputs into the simulation, complements the simulation system we set up perfectly. The system was introduced as a prototype in 2016 at a site in the consumer goods industry, which offered us extensive practical opportunities with its 200 employees. We are currently introducing the transfer to a site in Saxony, which will also enable us to incorporate Schenker services from the land transport division.

MFL: Have changes already been made to the tool based on practical experience?Reppahn: Yes, requirements were recorded in various on-site meetings and incorporated into either the simulation or assistance system. The pilot site provided valuable input here. This also applies to our partners at Fraunhofer IML, who work in a very practice-oriented manner and are curious about feedback from real applications.

MFL: Thank you very much for the interview.

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