Optimization Solution for BMW Brilliance Transportation
Collaboration between BMW Brilliance and flexis has led to the development of an advanced tool that optimizes transportation. The solution displays the ideal routes for a given shipment and determines the best utilization of available transportation modes (sea, air, and land). By measuring and optimizing the basic capacitive load for all available modes of transport, BMW Brilliance is now able to ensure stable transport planning while minimizing transport cost and time.
The Objectives are:
- Right parts, in the right place, at the right time
- Optimize transport with a balance of available transportation modes
- Avoid unplanned expedites for covering supply shortages
- Reduce or eliminate waste generated from forecast inaccuracies
- Significantly reduce costs arising from logistics, obsolete parts, and warehousing
- Reduce air freight when parts can be shipped through alternate modes
BMW ships parts from Europe to China for use at their manufacturing facilities. Since there are different transportation mode possibilities, it was often unclear what the most effective mode might be for a given shipment. Due to the long-lead times related to the shipment mode and changes in demand streams, there was a high risk of having too many or too few parts available. In cases where there are too many parts at the manufacturing or warehouse facility, there is high risk of quality issues or obsolescence, often leading to added costs. In case of a shortage, there is the need to expedite in order to avoid any or further disruptions. In each scenario, there are added costs and risks. The most efficient and cost effective transportation mode can be determined by utilizing the correct planning solution, which takes into account all of the various parameters, constraints, and scenarios.