Kuehne + Nagel improves planning capabilities with AMCS
Kuehne + Nagel Logistics has started the roll out of AMCS Fleet Planner to optimize route and resource planning with this Advanced Planning and Scheduling system (APS). “AMCS Fleet Planner offers us added value in our dynamic planning and in managing the multi-depot flows in the Netherlands”, says Vincent van der Meer, Business Unit Manager Transport at Kuehne + Nagel.
Kuehne + Nagel made a considered decision to combine the requirements of an advanced planning and scheduling (APS) from AMCS with the additional benefits of a transportation management system (TMS) from Kewill and roll them out simultaneously. “It is our goal to further improve service levels for our customers with these systems. We strive to go live this fall”, says Van der Meer. The new systems replace a transportation management system that was heavily customized and was developed on heritage Microsoft NAV technology.
Two-stage planning The AMCS APS provides powerful new options to the business according to Van der Meer. “We work with a two-stage multi-depot planning. The amount of variables increases continuously and now transcends human capacity. We need to deal with variables that have to do with congestion, time windows, material, product, driver and vehicle specifications and driving and resting hours. It is a real challenge to produce a proper plan whilst taking into account all these aspects and ensuring on-time delivery.
“We are extremely proud of Kuehne + Nagel’s choice for AMCS Fleet Planner. The implementation is a great step for the AMCS Routing division”, explains Martijn Schimmer, Regional Manager at AMCS. “We are also looking forward to the cooperation with TMS-supplier Kewill. I expect a good supplier match in this project and we will make every effort to optimize the planning of Kuehne + Nagel to make the service to customers even more reliable. "
Combining LTL and FTL planning The planners are combining route planning with LTL loads on day one and FTL loads on day two. “For Kuehne + Nagel it is important to be able to carry out route planning and resource planning non-simultaneously. Of all the suppliers we approached AMCS in particular showed that capability”, according to Van der Meer. Kuehne + Nagel will use AMCS Fleet Planner for distribution to and from their three own warehouses in the Netherlands. The logistics service provider handles about 700 drops per day, using 200 vehicles. Of these one hundred are owned by Kuehne + Nagel, fifty are subcontractors’ vehicles and another fifty execute a few trips on a charter basis.
‘Quick and clear overview’ AMCS Fleet Planner continuously calculates what the optimal result of planning are for Kuehne + Nagel, including changes during execution. “Our choice for AMCS was also based on the clear planning dashboard that is part of the solution. This offers our planners a quick overview of the trip status, the activities in execution and whether they are executed as planned. The planners themselves did have a say in the choice of the IT solution.”
Proactive communication Planned further improvement of customer service for Kuehne + Nagel means making additional steps in terms of quality and reliability. “Most important is to proactively communicate with customers and keep differentiating ourselves in a positive way so that we convince hauliers in the FMCG market to become and stay our customers.”
Added efficiency in terms of less empty miles and higher loading degree is a nice bonus according to Van der Meer.
* Image: Vincent van der Meer, Business Unit Manager Transport at Kuehne + Nagel and Rogier de Klein, Sales Executive at AMCS