Supply chain design network for reverse logistics

Structures and processes for cooperative reverse logistics for large load carriers within Europe

With Supply Chain Design, an integrated network was developed for the reverse logistics of large load carriers, in which transportation, storage and handling are carried out cooperatively. For this purpose, existing structures and processes of the participating companies were harmonized and supplemented with new locations and relations. The aim was to reduce overall costs and the resulting CO2 emissions.

Rothbaum’s methodical approach and analytical skills have decisively advanced our integrated logistics project.
Charlotte Röber, Managing Director EPPA

The companies of EPPA

Seven leading manufacturers of PVC-U window systems (Veka, Schüco, Rehau, Gealan, Salamander, Deceuninck, Aluplast)
Consolidated annual sales of over EUR 3 billion with more than 15,000 employees
Cooperation within the framework of the European Producers of PVC-U Window Systems Association (EPPA)

Services

Modeling the reverse logistics of the seven participating companies
Development of cooperative structures and processes for integrated logistics in a brownfield approach
Design of an optimal logistics network in terms of cost and service level using linear optimization in AnyLogistix

Results

Design of a cooperative logistics network that exploits synergies in transportation, storage and handling
Total logistics costs can be reduced by between 14 and 25 % compared to the status quo
Reduction of CO2 emissions by up to 28 %

Project description: Network design of integrated logistics for EPPA

PVC-U window systems are distributed in high-quality long goods racks in a closed loop. The seven participating companies each operate their own multi-stage reverse logistics system for returns. The costs of returns in these logistics networks amount to an annual sum in the double-digit millions. The industry association EPPA is therefore striving for more cooperation and commissioned Rothbaum to design the complex network and determine the savings in a valid way.

Procedure

First, Rothbaum conducted an extensive data analysis to create transparency about the status quo in the seven companies. Then the model was created, which could be approximated to within 0.4% of reality. Rothbaum then developed cooperative structures and processes, integrated these into the model, created the best possible setup of the logistics network in the supply chain design and evaluated the savings.

Results

Rothbaum developed a two-stage implementation plan to establish the network:

In stage 1, the transports and consolidation locations are used cooperatively. Rothbaum defined new collection areas and transport modes for this purpose. In some cases, new routes were created. Significant savings can already be achieved in this first stage. As implementation can be carried out by reallocating existing resources, only minimal investment is required.

In a second stage, new, dedicated network sites will be created at selected locations and integrated into the logistics network. This measure will create further synergy effects and significantly increase savings. The network can now be operated by a joint venture company.

Rothbaum-Success-Story-EPPA-Network-Design-Combined Logistics

Portrait of Kai Philipp Bauer, Managing Director at Rothbaum

Dr.-Ing. Kai Philipp Bauer

Senior Manager Supply Chain Management

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