Redesigning a physical distribution and logistics system: The Bebal Cucine case study’ by Nonino and Panizzolo examines logistics planning of Fabel Group, an important brand name in the area of high quality modular kitchen, involving transport carriers. The company has three…
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Customer service being vital ingredient of logistics, the quality, time, speed, punctuality and reliability of delivery become crucial components. The company utilizes ECOSELL using Extended Enterprises for enhanced logistic planning outcome.
Firm’s physical distribution and logistics management relies on capillary network of points of sale throughout the country where inventory is mostly brought by fleet of trucks but sometimes also using couriers or collected by point of sale. The kitchens are delivered to point of sale in three ways: 17 dedicated trucks are used for Italy and 13 trucks delivery kitchen abroad, on a once in a week basis; urgent deliveries are made through third party carrier firms; and sometimes, customers collect it directly from the production plant. To ensure smooth flow of logistics, the company uses percentage of cumulative volumes against total deliveries by dividing regions into three groups: group 1 absorbs 60% of total volume of products and 57% of deliveries; group 2 absorbs 30% of products’ volume and 33% of total deliveries; and third group absorbs lowest volume and least number of deliveries.
Orders sent by point of sales are segregated by regions and arranged by delivery dates to be delivered by trucks such that trucks are optimally used. Assemble to Order or ATO, using forecasts for parts and sub-assemblies to fill the truck which are later assembled to meet the demands. While ATO has many advantages, disadvantages like higher lead times, non-flexible manufacturing system and limited productive capacity of plants become major drawbacks. Consequently, firm uses its other brands to fill the trucks and save cost. Thus the redesigned system using EE are introduced which become highly effective mechanism to exploit the logistics and supply system in the meta value chain through dynamic assignment of orders. ECOSELL using EE applies superimposition of geographical
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