Algorithmic components for optimising distribution planning

Logistic &
Supply Chain

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Algorithmic components for optimising distribution planning

Leading Home
Appliance Company

Production all
across Europe

Real-time
planning

The company, a world leader in home appliance production, owns factories all across Europe. The products are distributed through regional stores. The challenge given to Optit was to reduce transportation costs by improving the load factor of the vehicles already in use, respecting operational constraints and the service level promised to the client. Furthermore, the execution time had to be compatible with a real-time planning process.

“Real-time optimisation services integrated in SAP”

man-at-work
Claudio Caremi,
COO

Our
solution

Optit generated algorithmic components able to create optimised “same-day” solutions in batch form, providing insights into the management of successive days (such as possible mismatches between the volume of goods to be transported and the capacity of the vehicles scheduled). The components allow the execution of planning processes in real time, when every planner must take into account the possible unavailability of merchandise, changes in order priority, and everything else that can happen at the last minute. Optit’s solution, integrated with SAP to allow ad hoc optimisation of planning processes, was deliberately made to be “scalable” to other processes with the insertion of additional optimisation models (such as bin packing).

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