OPTANO Logistic - Plus

Coordinating time, space, capacity and costs to gain the optimum solution as a result – this is the logistics challenge which we are looking at more closely in our blog series OPTANO Logistics. We began by focusing on the aspects which greatly influence logistics work in our blog OPTANO Logistics – Part I . We are well aware that when we dealt with the various logistics concepts here, such as whether to use disposable or reusable load carriers, we only considered partial logistics aspects. The complexity of logistics becomes far greater once we take other influential factors into consideration –  delivery times, order and warehouse quantities, transport routes and the deployment of resources, for instance. The wide variety of product pallets, changes in the manufacturing process, perishable goods or obsolete technologies also call for increased flexibility in the logistics sector and thus increase complexity even further.

Managing complexity with mathematics and experience

At first glance, logistics often appears to be too complex for fast and clear decisions. In fact, the exact opposite is the case: It is this complexity that offers a great deal of leeway and a number of different approaches. However, these must be managed if we want to reach the best decision. This is where our blueprint OPTANO Logistics comes in: by evaluating  processes, data and cross-dependencies, complex logistics tasks can also be solved efficiently.

Optimization with OPTANO Logistics contains more than just recommendations on how to draw up cost-optimized logistics plans. Alongside suggestions on how to attain an optimum material flow, the logistics provider also receives sound recommendations along the lines of: “The supplier has to dispatch the shock absorber delivery in three days”. There is a reason why we have again chosen to cite an example from the automobile industry. For many years now, our team of experts has worked very successfully and gained valuable experience in this sector by  conducting a great deal of research into this extensive topic, most notably into cost-optimized material flows in operational supply logistics in the commercial vehicle industry. Furthermore, numerous projects over the last few years (e.g. Success Story: Optimizing global program planning at Daimler Trucks) have proven that our team knows how to handle mass data (we’re talking here about millions of values) and the automatic processing thereof. It also has experience in connecting to other applications, such as to ERP software like SAP (Read more on this in our blog OPTANO SAP Connection).

The “Plus” of OPTANO Logistics – decisions with added value

Many calculations are possible in planning but the figures and data which are needed and which have to make sense mainly depend on your planning objective.  You first have to establish whether the logistics provider’s plan is aimed at reliability (i.e. punctual delivery), cost reductions, high contribution or gross margins, short waiting times for clients and so on…

There are many conceivable goals and in many cases, these can be planned using OPTANO Logistics. As mentioned above, drawing up cost-optimized material flow plans  is not the only thing that OPTANO logistics has to offer. As well as the specific recommendations for action which we mentioned earlier, KPIs can also be stipulated based on the results yielded, cost accounting can be performed and pick-up sheets can be compiled. In addition, OPTANO’s scenario technology also allows you to study and compare purchase orders.

Key Performance Indicators (KPIs)

Warehouse efficiency and the utilization of vehicle capacity, the additional demand for load carriers, the costs per ton kilometer, the forecast times for when goods are required…. these are just some of the important KPIs in logistics.

OPTANO offers you the flexibility to display all the relevant KPIs and calculate the result based on the optimization. In this way, you can achieve the best goals possible and you are also able to get a detailed evaluation of the KPIs in planning.

Cost accounting

Logistics costs as overheads are assigned to the individual cost objects/units (components or products) in cost accounting. OPTANO Logistics allows you to consider various cost objects/units during transport. By citing yet another example from the automobile industry, one question could be: “How high are the logistics costs for an individual shock absorber if axles and wheel rims are also transported in the same truck?”Based on the results, the costs for manufacturing and the (net) cost prices can be calculated with the results, the final costs and internal costs can be evaluated, orders calculated and supplies assessed.

Pick-up sheet

A main source of information for the client – in our case the automobile manufacturer – and for his suppliers and forwarders is the pick-up sheet which serves as a delivery schedule and accompanies the delivery, thus making shipping documents, delivery notes and goods issue slips superfluous. It is sent as an external document from the client to the supplier and forwarders and gives the forwarder instructions on the delivery procedure showing him which supplier is to  be supplied and when. OPTANO Logistics can compile the pick-up sheet as a kind of “added vlaue for the client”. In this way the time needed to draft this and the other documents mentioned above is reduced and this also means a reduction in costs.

Scenarios  for transparency in procurement

To attain the goal of cost-optimized logistics plans OPTANO logistics can be deployed to support the purchasing department. Potential purchase orders can be checked and compared by performing what-if scenarios. Various scenarios can be depicted by changing input data and parameters. When comparing the scenarios, the effects of these changes become apparent immediately. Purchasers and logistics providers have a better basis on which they can make their decisions.

We are absolutely convinced of the possibilities OPTANO can offer in logistics. And not just for automobile manufacturers. OPTANO Logistics is a tool that makes complexity manageable and helps you to draw up optimum logistic plans which is why it is also a valuable tool for other industries, too. Not only that, it also offers added value; turning good planning into optimum planning.

Other topics you may find interesting….