Supply Chain Optimization

A bakery with fresh product delivery had a hectic finished goods distribution process during which it managed a number of subcontracted transport companies. Transport trucks and vans worked on a predefined schedule, but various unforeseen production delays forced them to wait longer than planned, causing other problems, including an overcrowded terminal and further delays caused by traffic congestion.

The bakery's logistics center required better information about the production schedule state and better estimates about production delays to organize vehicle staging. Some vehicles would be kept on hold if production promised only short delays, while others would be released if waiting times were too long. Production was unable to provide sufficient information on time.

Operations management decided to improve production visibility and introduced various checkpoints in production routes. Operators could get information about current production orders and update it as the situation changed, and this information was immediately available at the logistics center, allowing them to make decisions independently.

As production takes about 2 hours from start to finish, the real-time system allowed logistics to perform fine-grained planning within this scope. If production was late, insufficient raw material was detected, or too much waste was generated, making it clear that some finished goods would not be ready in the next 2 hours, logistics managers could reorganize and reroute delivery vehicles.