Bottlenecks eliminated

No more traffic jams at the factory gate

The Upper Franconian automotive supplier Dr. Schneider has been optimizing its delivery logistics with software from Inform for two years. The throughput and dispatch of delivery traffic can now be seamlessly controlled and documented.

© Inform

Car manufacturers are launching new brand models on the market at ever shorter intervals. At the same time, the number of individualized configuration options is constantly increasing. This acceleration and diversification of production naturally has an impact on supply chains, which are becoming increasingly complex and intertwined, stretching across Europe and far beyond. For example, a single component of a car, such as the engine, can cross up to 15 national borders within the EU and go through 100 processing steps before final assembly. Truck traffic in Germany, which accounts for around 72 percent of freight transportation, has increased significantly in recent years, not least for this reason. The number of trucks registered in Germany alone has more than doubled since 1990 and now stands at around three million, according to the Federal Motor Transport Authority. In order to avoid constant traffic jams in front of factory gates when delivering goods, decision-intelligent algorithms can optimize the handling of trucks.

Interface between OEMs and suppliers
The Dr. Schneider Unternehmensgruppe, headquartered in Kronach-Neuses, was also faced with the challenge of balancing the growing delivery traffic. The automotive supplier manufactures high-quality components for vehicle interiors for installation in motor vehicles. The product range extends from highly integrated trims and modules for instrument panels and center consoles to ventilation systems, which are used in models from well-known car manufacturers such as BMW, Daimler, VW and Volvo. In his search for intelligent solutions, Dr. Schneider became aware of the Aachen-based software manufacturer Inform, which was already working successfully with partners and customers of the supplier in the area of process optimization for yard logistics. With the SyncroSupply optimization system developed by Inform, the Upper Franconian company can

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Today, the system can both regulate the flow of incoming trucks and flexibly control their movements on the factory premises. Due to the differentiation of production, almost every car is now equipped with different components. However, as the just-in-time principle means that components are only manufactured and delivered at the time and in the quantities required for production, the demands on logistics are enormous. Automotive suppliers are at the intersection of two supply chains: on the one hand, they themselves require materials to manufacture car parts, but at the same time they are part of the supplier network that supplies car manufacturers with components for the final assembly of vehicles. The resulting complexity of the flow of goods and the large number of trucks to be dispatched pose major challenges for medium-sized companies in particular: They have to organize delivery processes for their own production and deliver the required components to the car manufacturers - OEMs ("Original Equipment Manufacturers") for short - with pinpoint accuracy. Without decision-intelligent optimization solutions, this is virtually impossible.

Complex delivery logistics require smart solutions
To deliver material to Dr. Schneider for further processing or to collect finished components, up to 100 trucks and delivery vans pass through the factory premises in Kronach every day, which need to be loaded or unloaded as quickly as possible. Coordinating the delivery traffic proved to be a problem for the supplier over time. "On some days, the trucks would back up onto the nearby main road," explains Christopher Holzmann, project manager in the plant logistics department at Dr. Schneider. "That's why we optimized the truck access control with the algorithms from Inform." "The rush at the factory gate was enormous, especially between 11 a.m. and 1 p.m.," recalls the project manager. The increasingly complex and tightly timed logistics processes could hardly be managed using conventional means: "All incoming and outgoing tours have to be processed on the same day. We used to know which deliveries would reach our plant on a particular day, but we often didn't know the exact time. Incoming trucks first registered with the gatekeeper and received the vehicle registration form from him. The porter then called the relevant departments and announced the trucks there. They were then assigned a free loading point in the yard, which they were to drive to," explains Holzmann.

Both the porter and the loading supervisor were constantly on the phone, and the latter also had to check the outgoing freight. "Our most important tools were the telephone and Excel spreadsheets," says Holzmann. "We didn't have a consistent overview of where which truck with which freight was currently on the site." But if the handling of individual trucks is delayed, this can result in high demurrage charges from the freight forwarders and waiting customers. Inform's SyncroSupply solution helps to avoid this.

Time slot management and supply optimization
SyncroSupply, which the Dr. Schneider Unternehmensgruppe implemented in May 2016, enables effective and flexible time slot management: freight forwarders can book slots for the delivery or collection of materials online in advance and free of charge. This significantly reduces truck throughput times and makes better use of loading point capacities. Waiting times, traffic jams and bottlenecks in production are now a thing of the past.

Up to 100 trucks are loaded and unloaded at Dr. Schneider in Kronach every day. © Inform

Nevertheless, unforeseen events can turn the seamless time slot plan upside down at any time. "Some drivers speak neither German nor English and can barely communicate with our employees," notes Project Manager Holzmann. "It can happen that certain time stamps are not set correctly and consignments are not assigned to the right truck, or that registered trucks arrive at a different time than announced. The intelligent supply control system helps us to deal with such mishaps." The intelligent optimization algorithms then calculate a new schedule that guarantees the smooth processing of delivery traffic. At Dr. Schneider's request, the software was also supplemented with a warning function: if a truck that has been called automatically does not reach the intended loading point within a few minutes, a warning symbol appears in the system.

Seamless dispatch
Time slot management and supply control with SyncroSupply allow Dr. Schneider to control the entire truck dispatch process at the plant seamlessly and flexibly. Christopher Holzmann explains: "For non-recurring tours, freight forwarders have to secure free time slots in the schedule before delivery or collection at the plant. A route number is assigned, which the truck drivers use to register at the plant gate when they arrive in Kronach-Neuses. The trucks then go directly to the assigned ramp or to a parking lot to wait for their call via SMS. While trucks are automatically dispatched in the incoming goods and container management areas at Dr. Schneider, the loadmaster still calls the trucks himself in the dispatch area."

At the gate, the driver of the called truck receives a vehicle registration form with all the information relevant to the handling of the tour, such as the journey number, unless the carrier has already generated the form himself when booking the time slot. After arriving at one of the ten available loading points at the depot, the forklift drivers stationed there set time stamps to document loading or unloading. To complete the loading process, the forklift drivers take a photo of the fully loaded truck, which is archived in the system together with the journey number. This is to prove that the freight has been secured in accordance with regulations. In the case of automatic call-off, the system automatically triggers the call-off of the next truck in the schedule; in the case of dispatch, the loading foreman performs this step manually after handing over the shipping documents to the truck driver. Dispatched trucks can leave the premises or drive to the next station in the plant.

Process optimization that pays off
According to project manager Holzmann, Dr. Schneider has not regretted the decision to optimize its logistics processes with SyncroSupply: "We are now making the entire delivery process much more efficient. Waiting and throughput times have become significantly shorter. Traffic jams are no longer an issue for us. This has also enabled us to optimize our cooperation with the OEMs." The supply chains of the car manufacturers and Dr. Schneider now interlock much better than before, although just-in-time production leaves less and less leeway in terms of time.

Thanks to the central data collection, Dr. Schneider was also able to create complete transparency about its delivery relationships. This relieves the strain on employees: they now have to make far fewer phone calls than before and can get an overview of truck volumes, shipping volumes or upcoming tours in the system at any time. For the future, Holzmann is planning to further develop the system in close cooperation with Inform: "For us as a supplier, it would be a great advantage if we could merge our own ERP system with SyncroSupply. This would allow us to further optimize our internal processes."

The company Inform
...specializes in decision-intelligent IT systems. The company optimizes complex operational and logistical processes. This enables the right decision to be made from a vast number of alternatives, even under great time pressure. While data-managing software only provides information, Inform systems can, according to the company, analyze large amounts of data in a matter of seconds, calculate numerous decision variants and suggest the best possible solution to the user for implementation. Inform has been developing scientifically sound optimization algorithms for this purpose since 1969, thereby tapping into a broadly diversified market. From container terminals, commercial airports, financial service providers, industrial companies and wholesalers to storage and transshipment centers and transport companies - today over 750 employees support more than 1,000 customers worldwide.

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