Appliance logistics: intelligent planning at European scale

How Decision Science transforms capacity planning and load management in a complex distribution network.

Markets

Logistics and supply chain

Solutions

Custom solutions

The challenge

The European distribution network of a major appliance manufacturer has to manage complex flows from more than 10 production centres (FDCs) to intermediate hubs and end customers. With an average of 6,000 units and 500 orders per day per single site, daily transport planning was handled entirely through manual processes. The challenge was to overcome the rigidity of a complex order-to-vehicle allocation process, governed by strict operational constraints: customer delivery deadlines, physical product availability, and loading rules for logistics families (limiting the product mix to one or two categories per load, to cut handling time and cost). All this while minimising the risk of penalties for cancelling fleets already booked on a weekly basis, and aiming to maximise the fill rate of the vehicles in operation.

How we create value

Optit developed a custom solution based on a Mixed Integer Linear Programming (MILP) mathematical model, embedding Decision Intelligence within the company’s information systems (SAP). The engineered architecture separates process management from algorithmic optimisation, operating on two integrated levels:

Shipment Proposal: an overnight batch process that processes the entire order book over a horizon of up to 15 days. It generates the executive load plan for the next 1-2 days and calculates the number of vehicles and containers needed to cover the following 13 days.
Fulfilment Proposal: an on-demand module that lets planners recalculate goods allocation across shipments for individual logistics routes within minutes, responding in real time to sudden changes such as stock shortages or resource unavailability.

The algorithm breaks the problem down by individual logistics route, ensuring fast calculations and full compliance with commercial constraints.

Impact

Introducing the automated decision-making system delivered concrete business benefits:

Maximum vehicle fill rates, thanks to optimal load combinations.
Drastically reduced calculation times, down to just a few minutes per distribution route.
Higher service levels, meeting delivery dates while assessing early or delayed replenishment to allow greater volume consolidation at distribution hubs.
A controlled digital transition, moving from manual processes to overnight batch planning and real-time on-demand planning, fully integrated with company systems.