Mercedes-Benz wants to reduce the cost of its logistics by twenty per cent per vehicle and has millions to spare. Therefore, it is going to completely overhaul its supply chain.
Logistics high cost
The cost of logistics would be higher because it has many assembly sites outside Germany, while parts still all come from Germany. This makes logistics a "very significant" cost. Logistics costs would sometimes even exceed production costs in low-wage countries. "With more than 30 model lines each made up of thousands of parts, the complexity is enormous," said Markus Schaefer, head of production at Mercedes.
Real-time information
It is working on a new supply chain system in which parts are unpacked in special sorting centres. They are then grouped and forwarded to the corresponding production line. Yet this too involves challenges. It is important to send the right part to the specific factory at the right time. In addition, care must be taken not to overstock, but meanwhile to have a sufficient buffer so as not to jeopardise the production process.
That is why new information technologies play an important role in the new supply chain strategy. Tools that work with real-time radio signals are being used.
Editorial LogistiekProfs
