Optimized inter-warehouse transportation resulted in transportation cost reduction
Continental Barum is a rubber tires manufacturer based in the Czech Republic that produces more than two tens of millions of rubber tires yearly. Therefore, the manufacturer wanted to minimize the inter-warehouse transportation required to collect all ordered items of a particular order dispatching.
We analyzed historical data (orders, dispatching, routes) and developed an intelligent new tire distribution algorithm and a web-based application. This smart application suggests where to store the produced items to minimize the future need for inter-warehouse transportation.
As a result, more orders can be dispatched from a single warehouse directly. The inter-warehouse transit is limited to a minimum, and inter-warehouse transportation costs have significantly decreased.
