Kronospan
Kronospan is a leader in the production of materials for the furniture and woodworking industry, focusing on high quality and environmental care.
The company has more than 40 production plants in Europe, the United States, and China.
Packing Algorithm
Challenges
Kronospan serves a wide range of business customers, including architects, carpenters, and distributors (strefaplyt.pl). Each group requires an individual pricing approach due to their varied needs and purchase levels.
The main challenge was to accurately determine the dimensions and weight of orders, crucial for the correct allocation of packaging and calculation of transport costs.
Goals and tasks
- Accurate Calculation of Order Dimensions and Weight: Providing precise data for packaging process optimization.
- Transparent Shipping Costs Presentation: Displaying shipping costs clearly to customers at the checkout stage.
- Optimal Packaging Allocation Algorithm: Developing an algorithm to optimize packaging, minimizing packaging use, reducing human error, and lowering transport costs.
- Default Dimensions Assignment: Defining default dimensions for the entire product catalog to manage logistics efficiently.
- Integration with DB Schenker: Collaborating with the logistics provider for precise cost calculation and shipment tracking.
Benefits for Kronospan
- Cost Optimization: Automating the generation of waybills saves time and reduces labor costs.
- Faster Order Processing: Automating order processing speeds up logistical processes.
- Error Reduction: Automation minimizes the risk of errors, such as incorrect shipment addressing.
- Automatic Label Printing: Streamlines the packaging and shipping process.
- Delivery Form Optimization: Automatically selects the most cost-effective delivery form, like shipping two half-pallets instead of one full pallet.
Benefits for the Client
- Shipment Tracking: Customers can track their orders at every delivery stage, increasing trust and satisfaction.
- Transparent Delivery Options: The system presents all available delivery options, including costs and delivery times, aiding in informed decision-making.
- Choice Flexibility: Although the system suggests the cheapest delivery option, customers can select another method if they prefer a different form of transport or delivery time.
Implementing the packing algorithm at Kronospan significantly improved logistics processes, customer service, cost optimization, warehouse management, and order handling.
Integrating with DB Schenker allowed for precise and transparent delivery cost calculations, enhancing customer satisfaction by providing clarity and certainty about the costs associated with product delivery.
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