Maximizing on-time performance while minimizing costs

In many sectors of the economy, the precise moment at which goods are delivered is paramount. On-time delivery determines whether a project stays on schedule, marketing campaigns can be successfully launched, and promises are kept.

Site logistics, manufacturing, and seasonal product sales are just a few examples of where this really comes into play. A number of questions must be answered to ensure that procurement logistics processes sync without delays: When exactly should the goods be ordered and from which supplier to ensure they can be routed through the logistics network without disruptions? How can the various requirements be aligned most efficiently? How can supplier, warehouse, and transport bottlenecks be managed before they become a problem? Cost plays a critical role in addressing each of these questions, of course.

Optimizing procurement processes does more than ensure that customers get their goods on time. It also pays for itself as reflected in purchasing prices and ordering costs and in the costs for transportation, storage, and distribution. That’s why a procurement optimization solution takes into account all costs. Some key features of the solution:

• Inventory and order data are collected and prepared.
• All data is validated. This includes plausibility checks of weight or packing dimensions for all articles through simulation of a full container packing.
• A solution model is designed and customized to the specific planning requirements.
• The raw results are fed into the solution’s agreed target structure, creating special views for the various departments (order proposal for purchasing, warehouse requirements planning for personnel planning, transport plan, etc.)

The customer gains a procurement optimization solution that integrates logistics and purchasing. Taking a holistic view of solution scenarios breaks down silos. This makes it possible to consider all cost parameters and minimize the congestion and disruption costs associated with container rentals as well as demurrage and berthing charges at ports. The flow of data is unimpeded, ensuring smooth operational processes. The procurement processes are reliable and all the goods flow smoothly, even when bottlenecks occur.

The solution also lets the customer plan warehouse and transport personnel deployment proactively to minimize the impact when demand spikes. This provides a solid foundation for strategic and operational planning of manufacturing and logistics processes. The solution automatically adapts to changing circumstances whenever capacity, demand, or production volumes fluctuate.