BUILDING MATERIALS


MANUFACTURING


ANNUAL SALES OF € 10 BILLION (2019)

 

 

Knauf

Sparing millions by better delivery and warehouse yard handling

Customer

A world leader in the building materials industry, Knauf Group runs 250 production plants globally and has annual sales of €10 billion (2019). In the UK, Knauf operates two factories and the company ships finished products and systems on a strict schedule to various destinations. As one of the UK’s largest manufacturers of plasterboard, Knauf UK places its transport orders with a broad pool of contracted carriers and, typically, each shipment must arrive on time. If there is an unexpected delivery delay, this can cause an entire construction project to stall.

The combination of Transporeon and Sixfold is the perfect match to achieve our goal of a fully transparent process from order to delivery.”


Brian Moran, Logistics Manager UK
Knauf UK

Challenges

On average, Knauf UK makes 42,000 shipments per year to 800 unique locations using various carriers. Delivery priorities for Knauf UK are:

  • Maintaining high levels of customer satisfaction by getting shipments to recipients on time, and to accurately measure and monitor carrier performance.
  • Knowing the exact location of transports across the network and be able to provide this information to customers.
  • Achieving full process transparency, from the order through to delivery, and create a multi-haulier solution which allows to lower individual carrier setup costs and to have competitive pricing in the market. Having multiple players allows lower pricing and competition for lane rates.
  • Lowering carrier waiting times, demurrage costs, and increased turnaround times due to trucks arriving at loading stations being controlled by one outbound haulier.
  • Reducing heavy communication traffic, due to the multiple transport planners involved and a lack of transparency during the loading and delivery process, impacting customer service.

Solution

  • Transport assignment via no-touch order: On the basis of previously agreed fixed contracts, the carrier gets an order directly and, if necessary, alternatives are searched automatically using an algorithm
  • Time slot management: Carriers book a digital time slot for loading or unloading at the ramp, giving Knauf UK control over incoming/outgoing trucks and trailers
  • Real-time visibility: Truck arrival times are calculated through pattern recognition, the interpretation of historical route data and a variety of external information (weather, traffic congestion, waiting times and more). Shipments are followed in real time and recipients are updated about arrivals. It’s proactive, fully automated and sustainable; if there’s a delay or early arrival, resources can be rescheduled

Results

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Cost savings

Lower freight costs by assigning individual carrier orders on a day-by-day basis. So far, Knauf UK has achieved £1.5 million savings in delivery and warehouse yard handling.

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Improved operations

Transparency allows automated handling of the carrier network and enables transport handling only by exception. Therefore, Knauf UK and its customers benefited from improved carrier efficiencies with truck turnaround times falling by 10 per cent.

Performance reporting

Reports, such as performance measures on delayed transports and tracking quality, enable more efficient transport planning and warehouse management, and inform databased negotiations with carriers.

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Better customer service – The future

With end-to-end visibility of most shipments in the network, Knauf UK is moving to keep customers informed, increasing satisfaction, with auto updates of shipment status. This will result in 80 per cent less check calls to carriers and end-customers.

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Predictive ETAs

Almost all ETA statuses are correctly predicted (97 percent rate), allowing early and accurate adjustment of arrival times – with a 6 min ETA accuracy on the last hour of the journey. All ETA and tracking statuses are shared with end-customers in real-time, keeping everyone up to speed and reducing check calls.