FTL/LTL Planner

We optimised inventory management and truck loads with mathematical optimization.

Baseline

Manual non-efficient transportation planning and ordering leads to high transportation costs and half-empty trucks

Weight and volume constraints in combination with FTL and LTL tariffs are hard to optimize for human planners

Storage and capital constraints make the problem even more challenging

Contracts allow the OEM limited changes in demands even for the tactical planning horizon

Approach

Mathematical modelling of the inventory and transportation problem

Focus on full truck load first

ERP system as single source of truth

Optimization tool as an external addon

Results are fed back into the ERP system

Development of a customized optimization algorithm tailored to customer-specific constraints

Stochastic demand model in combination with robust optimization

Expansion to further sites and transportation modes

Benefit

Truck utilization increased from 70-90% to >98.5%

Expected yearly savings: 5-figure EUR sum per site

Additional consolidation effects when integrating multiple sites