Optimised transport planning: reducing truck fleet costs and gate congestion: Karsten Horn, INFORM GmbH (Germany)

Filmed at Cemtech Asia 2015, 21-24 June, Grand Hyatt, Bangkok, Thailand

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Wow! That is amazing, people waiting and queuing in front of the store, having a big smile on their face when leaving. Unfortunately, products from our industry aren't as fancy as smart phones, so nobody is happy to wait, nobody is freaking out when leaving the plant. If waiting and queuing is part of your business module, I'm afraid I can't tell you anything new within my presentation, but if you don't like pictures like these from your plant, I think it's worth to join my presentation.

My name is Karsten Horn. I'm working as a Business Development Manager at Inform, and we're an optimization company, and I'd like to give you an impression what possible concepts, approaches, ideas of optimization could look like. So, if you look at tools like this, I'd say the main buzzwords of my presentation are management, organization, and tools, and tools like geographical information system, or ERP system, warehouse management systems, or systems for tracking and chasing, they're absolutely necessary to have in place, but they can't solve problems regarding those skate congestions alone on their own.

So, there're three other things that you'll need for that, that's on the one hand, the time slot management, means that you should give your customers, especially preferred customers certain time windows to appear at your plant, to receive the orders that they ordered. The second, tactical scheduling, this is about planning. So, you should know what tomorrow might happen at your plant, so doing a kind of pre-planning.

Planning is always good, but you also need to get in, or you also need to know about the changes and the incidence that happened during the day, so that is what real time optimization is for. What do I need this for? Why do I need this optimization thing for? From a producer's point of view, we're talking about lost sales, that is an example I figured out, so I simplified the figures a little to make it easier for me to calculate it through. So, let's assume we've a production capacity which's at 100%, we've 4 million tons per annum as an output, and 5% which's 200,000 tons lost due to waiting times. Then, we're talking about, that's why I made the figure so easy, let's assume that a ton is at $50, we are talking about 1 million ton of a loss just by queuing of trucks.

So, what kind of services shall we bring into as an industry? For example, if you look at or if you remember the first picture, what kind of people you would like to see in front of the line? Usually, you'd like to see those who want to buy the expensive smart phones. So, you should care for premium customers.

So, customers you're doing on going business with them or you should prefer your own truck fleet or if you have contract holiars, with them you're doing on-going constantly business instead of preferring maybe just one time shoppers. But also, expert deliveries and if you have specific product promotions, you should try to bring them up front and try to do kind of preference and prefer them to make sure that you get the right things up front.

Regarding safety, it's obvious, the less the better. Means, the less trucks or the less people are outside the trucks

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