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Optimizing Processes in Inbound Logistics

Objectives:

• Reduce operational costs (transport, handling, storage).
• Synchronize production between supplier and manufacturer.
• Change freight terms, if necessary.
• Achieve active management of the entire process, including transport.

Starting Point:

• Stock and transaction data for a representative operational period.
• Current procedures and personnel circumstances.
• Freight rates and SLAs with logistics service providers.

Method:

Analysis and design are done with software tools (Logistics Designer).

Keywords on procedure:

1. Set up a model covering all transport channels used in operation.
2. Calculate transport costs for door-to-door delivery.
3. Analyze channels (JIS, JIT, milk runs, FTL, LTL, KEP).
4. Optimize channel configuration (transport network, VMI, etc.), allocate channels according to items and frequencies.
5. Harmonize forwarder-related frequencies.
6. Switch to delivery ex works, if necessary.