Summary for case study ( an engineering logistic (software) solution ) - Essay Example

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 production plants that supply kitchen furnishings and designs under three different brand names to meet varying demands of the customers across Italy and other parts of Europe. The company’s logistics and supply chain operations are integrated for meta-value chain that coordinate and supply demands from different value chains within the company.

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 areas where requirements of several point of sales could be met by two or more carriers. The ECOSELL exploits dynamic assignment to coordinate its production and market activities for all its kitchen furnishings including design, production, sales and distribution, trade fair participation etc. The dynamic assignment primarily puts together single list of orders from three brands on a real time basis and then re-balances the loads module for final shipment.

Dynamic carrier sorting and dynamic carrier loading optimizes the use of trucks, using cycle system that for expediting delivery. The ECOSELL toolset using EE therefore cuts product delivery time by using high-speed algorithm based on flexible distribution system. It creates meta-value chain that is distinct in its sale and distribution logistics planning from the beginning to the end which contributes to higher customer satisfaction and greater credibility of the firm. (words: 529)ReferenceResource as provided.

Nonino, Fabio and Panizzolo, Roberto. ‘Redesigning a physical distribution and logistics system: The Bebal Cucine case study’.