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Lemvigh-Müller, Reduction in number of vehicles

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Lemvigh-Müller

Automatic planning has resulted in greater capacity utilization and a reduction in mileage and vehicles. Lemvigh-Müller is the largest wholesaler within steel and technical installations in Denmark. Lemvigh-Müller employs 1,200 people and has a turnover of approximately 600 million euros. The company’s two primary business areas are technical installations as well as steel/metal and the product range consists of approximately 300,000 items.

Reduced average mileage per delivery

10

Increased utilisation per vehicle

25

Reduced number of vehicles

15

# Employees

1200

Route and transportation optimisation

Exponential technology is driving change in almost every industry, and business models are shifting. To stay competitive, the supply chain in your industry must be optimized, predictable and reliable all at the same time. At AMCS we are taking things to the next level. With AMCS Intelligent Optimization you can operate with the agility your customers need, and have come to expect. Achieve the highest level of customer engagement and continuously improve your margins with our superior forecasting, time slotting and price optimization capabilities.

Challenge

We wanted to improve our operational efficiency and we needed a new system to achieve this.

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Challenge

We wanted to improve our operational efficiency and we needed a new system to achieve this. We had the ambition of improving our capacity utilization and achieving higher profitability. It was important to us to become less dependent on key personnel and future-proof our organization IT-wise

Solution

Michael Lichtenberg Crone continues, “Planning steel distribution is very complex so, despite the fact that we now have a cutting-edge system, we will always have a need for skilled planners.

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Solution

Michael Lichtenberg Crone continues, “Planning steel distribution is very complex so despite the fact that we now have a cuttingedge system, we will always have a need for skilled planners.
Shapes and sizes vary tremendously and there are many rules regarding placement of products during distribution. In this respect, we work with so-called ‘difficulty codes’ which are assigned to the goods and shown in the system’s Gantt chart. The system automatically pairs products and vehicles according to qualifications, and with these ‘difficulty codes’ the planners can easily double-check the system’s planning and make necessary adjustments.”

Results

Michael Lichtenberg Crone adds, “It was a process where we had to dismiss the way we used to plan and embrace what could look like “chaos planning” at first glance.

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Results

Michael Lichtenberg Crone adds, “It was a process where we had to dismiss the way we used to plan and embrace what could look like “chaos planning” at first glance. Our drivers thought it was a crazy system in the beginning, but the numbers speak for themselves.”

Achieved results:

  • Number of vehicles reduced by 15%
  • Capacity utilisation per vehicle increased by 20%
  • Average mileage per delivery reduced by 10%

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Our drivers thought it was a crazy system in the beginning, but the numbers speak for themselves

Michael Lichtenberg Crone

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Reduced time spent from order deadline to delivery

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Schulstad Denmark dates back to 1880 and has since worked on improving the Danish consumer bread culture with an emphasis on traditional bakery craft. From 3 bakeries and distribution centers, more than 800 employees daily produce and distribute to 2,700 retail customers planned on 110 routes and handled on 80 trucks.

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