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New, objective process for optimization in distribution

20.05.2009

inconso is the first independent partner for the Distribution

As the first independent solution provider, inconso AG supports customers and interested companies in the optimization of their distribution centers using the Distribution Center Reference Model (DCRM).

The leading provider of logistics IT and consulting solutions in Germany and the Institute for Conveing Technology and Logistics at the Karlsruhe University have entered into a partnership. In the scope of working together, inconso uses the DCRM developed in Karlsruhe for optimization consulting. The resulting anonymized customer data serves to extend the existing comprehensive benchmark database from IFL.

Since processes are normally to be viewed from a technical point of view and therefore normally not comparable, the efficiency of warehouses are often only determined on the top level and only partial compared. Through the order based view, a different starting point in the warehouse is set in order to measure and compare the processes, even on the operative level.

The operator of the distribution centers are put in a position to analyze their processes and operations in detail based on the scientific based procedure, use comparisons and initiate improvements. Logistics service providers and other companies who operate large warehouses can achieve internal performance comparisions, even if they have different goods for different industries.

Depending on the industry and the specific characteristics of the company, the costs for warehouse and distribution systems can sum up to 18% of the total revenue. With this, warehouse and distribution systems make up a considerable cost factor – on the other hand, they ensure especially the required delivery reliability and good reaction times, two central criteria for logistics quality in the eyes of the customer. With the Distribution Center Reference Model, a standardized, systematic procedure for comparing, analyzing and evaluating distribution centers is available for the first time. It offers assistance in the following main approaches:

  • Benchmarking of distribution center on different levels
  • Identification of Best Practices and analysis of maturity level of a
    distribution center
  • Compare the determined KPIs with analytic models
     

A central part of the DCRM is the cross-industry database which allows for the comparison of the determined results with the third parties and the ability to be able to perform deep level analyses.

As the leading consulting and software company in Germany, inconso AG has 350 employees with years of experience in the optimization of logistic processes and a broad base of reference customers. With this approach, it values the approach on the basis of scientific based works. Since 2007, inconso cooperates on an agreement basis with the department of mathmatics, data processing and natural sciences at the University of Applied Sciences Gießen-Friedberg and maintain contact with several logistics institutes and experts. In advance of the agreement with IFL, a number of inconso consultants were trained in the DCRM methodology.



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