A supply chain diagnosis in an optimisation approach
From July to October 2020, Arkema wanted to assess part of its inter-factory flows between France, the US and China. The company used Safecube’s IoTrack solution to identify optimisation levers on their replenishment flows.
The project addressed a few specific issues:
Improving lead time reliability
- Reliability of the arrival time
- The efficiency of the route used (incl. efficiency of transhipments)
- Update lead times in ERP systems.
- Analyse waiting times in ports (departure and arrival)
Carrier reliability analysis
- Evaluate in real time the trajectory of flows
- Identify deviations and non-respect of deadlines
- Get data independently from shipping companies to assess carrier reliability
Stock level optimisation
The campaign enabled to optimise in-transit and safety stocks :
- A better control of the flows thus less stock in transit (optimisation of the waiting times at the ports, optimisation of the maritime times)
- The study enabled them to update safety stocks, with a more realistic replenishment leadtime (based on a 3-month tracking campaign). This enables to limit shortages and overstocks.
- On the US/France flows for instance, lead-times could be lowered because of good reliability of the carrier, with arrival times being on time.
- On the France/China flows, measured lead-times were much more erratic and higher than theoretical ones.
Identification of optimisation levers
The tool identified high waiting times at the port of departure. The company decided to tighten up its flows.
The company decided to switch a part of its aircraft flows to maritime on a given flow proved with IoTrack to be very reliable. The maritime lead time, efficient and being respected systematically, enabled to use container ships rather than the plane. This allows a modal transfer to be carried out with various benefits, particularly a significant reduction in the carbon footprint.
Better visibility for internal coordination of flows
Iotrack has allowed better control of flows and, therefore, of stock levels. This facilitated internal coordination of flows and decision-making for inventory replenishment.
Today, this major player in the chemical industry has chosen to use Track & Trace’s EasyTrack offer in addition to IoT for container tracking in a spot campaign. The objective is to use the tool to follow specific containers with critical raw material, inform quickly about the arrival at the port, and optimise these priorities flows.