Logistics Planning at the Touch of a Button

In the current tense economic situation, cost-cutting measures are the order of the day for many companies. In manufacturing companies, logistics in particular – which can account for more than 20 percent of total product costs – is an important starting point. Internal logistics, i.e. supplying the production lines with a wide variety of materials and components, often plays a significant role in this. Materials and components have become much more complex in recent years, driven by increasing customer focus and individualisation. For example, the production of several models on one production line or many product variants elsewhere is now widespread in the automotive industry, mechanical engineering, the electrical industry or aircraft construction.

More than 5,000 material numbers on one production line are not uncommon and make supplying the assembly line a continuous, complex planning task. Take the automotive industry, for example: Where do fenders, steering wheels or tires arrive at the factory? Which route do they take within just-in-time production?  And how are they delivered to the assemblyinstallation site – on a moving transport trolley, in a small or large load carrier or with a driverless transport vehicle? What is the most cost-optimal conjunction? From incoming goods to the assembly line, there are up to 30 million options across all components. Determining the best option in each case is beyond the capabilities of human planners and also beyond those of current software programs.

A digital twin allows companiesyou to do just that – calculate and evaluate all conceivable scenarios at the touch of a button. With the help of a mathematical optimisation model, the tool performs complete overall process planning from goods receipt to the line-up at the assembly line, taking into account component quantity structures, logistics processes and the layout structure of the plant. In less than ten minutes, logistics planners obtain a result giving them the solution with the lowest total logistics costs. In addition to the optimisation of existing logistics processes, scenarios for new lines or various other changes can also be modelled and their costs calculated.

By using the digital twin, it is possible to significantly reduce internal logistics costs by up to 15 percent in addition to considerably accelerating planning and improving planning quality.