Lufthansa Cargo has chosen supply chain planning and optimisation company Quintiq’s software system to improve production planning at two of its most relevant hubs in Frankfurt and Munich.
The Dassault Systems company said additional stations will be included in the future in carrier’s effort to set up a global supply chain system.
Quintiq said Lufthansa Cargo can look forward to improved business performance as the system will maximise capacity of workstations and improve the flow of freight between inbound and outbound processes.
Lufthansa Cargo chief operating officer, Sören Stark said: “We at Lufthansa Cargo are constantly looking for new ways to simplify operations and increase efficiency. Digitization is key. It adds to our competitive advantage and gives value to our partners.
“Our search for digitized processes led us to Quintiq. We are confident that Quintiq will enable us to offer better service to our customers and strengthen our market position.”
At the two Lufthansa Cargo hubs selected for this Quintiq implementation, cargo needs to be broken down and built up for delivery to its next destination, either by plane or truck.
Quintiq said the system will enable Lufthansa Cargo to make smarter decisions with regards to schedules and workstation locations for these breakdown and build-up activities.
And by providing the company with better visibility of inbound and outbound freight handling, the solution eliminates the need for long buffer time when reserving a workstation. The company can free up its workstation capacity, limit required space for storage and increase overall due date reliability for its customers.
Quintiq says the system is able to generate a production plan seven days in advance, based on forecasted orders. Closer to the day of operations, the solution will start to fill the plan with actual orders. Using rapid optimisation technology, it will manage even last-minute updates, as full information on orders may arrive just hours before the goods are scheduled for delivery.
It will also seamlessly integrate with Lufthansa Cargo’s iCargo and Forecast systems. The three-way feedback loop between Forecast, Quintiq and iCargo drives more accurate plans on breakdown and build-up activities, and enables iCargo to monitor on-ground progress.
Quintiq chief executive officer, Rob van Egmond said: “We are delighted to be chosen to transform Lufthansa Cargo’s production planning. Given its massive volume of production, the increased efficiency of breaking down and building up the cargo will make a great difference to its overall business performance.
“Our presence in the aviation industry is further strengthened by our expansion into the air cargo sector. Our optimized planning solution delivers value to any market leader, regardless of the industry and complexity of its operations.”