Increasing efficiency and sustainability by generating smart loads that combine inbound and outbound runs

Becoming a “data-driven business”

How can transport service providers streamline their operations, maximize payloads, cut emissions and generally get the most out of their transportation network? REICHHART Logistik (REICHHART), headquartered outside Munich, Germany, asked these questions when it was looking for a software solution to consolidate all its data in one place. It found answers with the help of Siemens Digital Logistics’ Supply Chain Suite.

REICHHART was concerned about sustainability long before it was fashionable: For instance, when they became early adopters of biodiesel, installed heat pumps in their administrative offices long before this technology became widespread and began using a carbon footprint calculator. They have a habit of tackling challenges before they become mainstream. REICHHART is now turning to biomethane made entirely from straw and other waste products to get a head start on decarbonizing its transports. To optimize routes and make better use of vehicle capabilities, REICHHART adopted Siemens’ Supply Chain Suite, which is part of the Siemens Xcelerator business platform of software, hardware and services.

“Using Chain Suite helped us to better use our capabilities and maximize payloads,” says Katja Gerads, team lead for transport logistics tender management at REICHHART. “This is how logistics has become a data-driven business.”

Data collection and consolidation

REICHHART had already begun embracing technology years ago with its in-house “motus” logistics platform for warehouse management and sequencing. To stay up to date and further streamline its operations, in 2021 REICHHART began looking for a transport logistics software solution that could consolidate all its data and provide a detailed simulation of the company’s supply chain network.

“We wanted a tool to consolidate all our data in a user-friendly interface,” says Gerads. “The goal was to strike a balance between financial and environmental considerations, enhance our efficiency and further professionalize our planning tools.” The tool had to be flexible to cover a wide range of activities and meet the needs of a diverse customer base representing industries ranging from automotive and baked goods to fashion.

In-depth market review

To find the right service provider, REICHHART divided all its requirements into clusters and weighted these clusters before searching the market for qualified software partners. “We had a lot of meetings in which we vetted providers and their solutions,” Gerads recalls. Ultimately,
Supply Chain Suite was the clear choice. It combines a strikingly user-friendly interface with benefits such as the structured data import from a wide variety of sources and the option for unlimited data export. REICHHART is using an on-premises version of Supply Chain Suite.

Fitting the need

“We were able to customize Supply Chain Suite to fit our needs perfectly,” explains Gerads. The tool is used to calculate precise cargo spaces and transport capabilities, for example, making it possible for REICHHART to optimize how the truck fleet is deployed. It also tracks any costs incurred right down to the last euro. By consolidating address data, the solution
also considers that address formats in different countries can vary significantly. This eliminates the problem of missing or incorrect address data and misdirected deliveries.

Making better use of capabilities to enhance sustainability

The Supply Chain Suite enables REICHHART to optimize routes and frequencies. Partial truckloads are automatically combined, resulting in significantly fewer empty runs. Many half-empty single trips were consolidated into efficient round trips using smart loads that combine outbound and inbound runs.

“Making better use of our existing capabilities helps us become more efficient and sustainable,” says Gerads, noting, for example, they only need to reduce the time spent at each supplier by five to 10 minutes to cut down on the required number of vehicles.

Reducing emissions by 22 percent

One specific customer project illustrates the impressive results REICHHART was able to achieve by implementing Supply Chain Suite: The use of cargo space was improved by 18 percent, transport costs fell 13 percent and emissions were slashed 22 percent. “The bottom line was we gained 10 percent in efficiency in a customer project thanks in part to the time savings provided by Supply Chain Suite,” Gerads concludes.

Fit for the future

Using Supply Chain Suite also lets REICHHART run risk-free simulations of future needs or plans, such as the opening of new hubs, by simulating various scenarios and evaluating the consequences with just a few clicks of the mouse. This helps the company stay up to date and adaptable, so it can plan early on for new developments and their impact, such as
adjustments to tolls or the expected discontinuation at year’s end of the exemption for biomethane vehicles.