| | DECEMBER 20219CIOReviewlocation is primarily determined by market requirementsand is consequentlyrather close to the customer's plant. In this way, just-in-time orders can be handled while transportation costs are reduced. Henkel also follows this approach, using a smart software called Supply Chain Guru to rebuild the grown warehouse structure. The tool creates a virtual image of the network, a so-called digital twin, which allows the team to simulate different scenarios. In addition, integrated algorithms are able to process complex mathematical tasks. It might for example calculate the optimal distribution network for a product, taking into accountlimited storage capabilities at specific sites,as well as customer requirements for lead times. These simulations are useful to discuss the pros and cons of different options and to plan roles and responsibilities. Since 2013, the data-based optimisation of material flows led to a shift in Henkel's warehouse landscape, with 70 new warehouseopenings and 120 closures. The new distribution centre in Bönen, Germany, is the latest milestone on the way to establish a network with maximum capacity utilization. It's Henkel's biggest warehouse worldwide, with an area of 57,000 square meters and 300 employees. On average, 70 trucks per day are handled, predominantlydelivering to customers in Germany and Western Europe.Transportation:Always on trackDaily transport logistics can also be further optimised with the help of intelligent software solutions. Henkel's supply chain specialists use a Transport Management System (TMS) for this purpose. The tool retrieves the delivery orders created in SAP and consolidates them as efficiently as possible. Algorithms are also used here, in order to calculate multi-pick ormulti-drop options, as well as a combination of both. The benefits are obvious: Transport planners optimise the consolidation of loads and achieve the best possible truck utilization, reducing CO2 footprint and costs. Moreover, the tool enhances cost transparency, assigning transportation costs to every single transport planned. In addition, Henkel is currently testing a track-and-trace solution for trucks in North America. With its live-tracking function, the tool allows employees across functionsto see the exact arrival times of each truck. This functionality helps to anticipate delays and, as a consequence, improves the customer experience through faster and more accurate information, as well as planning of potentially needed actions, such as the need for express shipments. Track-and-trace solutions also enable new data-based insights, providing planners with information about load-volumes and on-time performances by hour. Results: Significant cost savingsCombining multiple smart software solutions to modern planning tools, Henkel Adhesive Technologies realised both economic and ecological benefits across the global supply chain. Overall, logistics contributed with substantial productivity gains which helped to fully compensate inflation over several years.. Furthermore, Adhesive Technologies reduced its carbon footprint per ton sold by 24percent in 2019, compared to levels in 2015. Our efforts to optimise transport and warehouse logistics thus contribute significantly to Henkel's overall climate strategy. Henkel creates the basis to stay up to date with market trends, improve the service level
< Page 8 | Page 10 >