Bakery - Supply Chain Optimization
Bakery with fresh product delivery had a hectic finished goods distribution process in which bakery was managing a number of subcontracting transport companies. Transport trucks and vans were working on a predefined schedule but due to various unforeseen delays in production they were forced to wait longer than planned which was causing other problems, including overcrowded terminal, further delays caused by traffic congestion,...
Bakeries’ logistic center required better information about production schedule state, better estimates about delays in production in order to organize piling vehicles. Some of which would be kept on hold if production was promising short delays, while others would be released if waiting times were too big. Production was unable to provide sufficient information on time.
Operations management decided to improve production visibility and introduced various checkpoints in production routes, where operators could get information about current production orders, and update it as situation changes, and this information was immediately available at logistic center so they could make decisions by themselves.
As it takes about 2 hours from the start to finish of the production, the real time system gave opportunity to logistics to make fine grade planning within this scope. If production was late, or insufficient raw material was detected, or too much waste was generated, and it would become clear that in the next 2 hours some finished goods would not come out of the production, logistics managers could opt to reorganize and reroute delivery vehicles.