MUNICH, Germany,
Jan. 18, 2011
(Press Release) -
Avery Dennison, a worldwide leading supplier for self-adhesive materials, uses ORion-PI® by Axxom Software AG for the tactical and strategic optimization of its European supply chain. The company has implemented the software in order to further improve its service levels and effectively reduce its overall logistics costs. Numerous particularities of Avery Dennison's supply chain, like e.g. a multi-stage production process, non-linear transport costs or the consideration of different shift patterns in the various logistics centers put special challenges on this project.
Avery Dennison's strategic objective is to identify and regularly review the optimal number and location of its logistics centers. Key tactical objects include the optimized product distribution to the individual logistics sites. "ORion-PI® enables us to model, analyze and optimize different scenarios for our production and logistics network. This in turn allows us to significantly increase our supply chain's transparency, improve our service levels and to substantially reduce our overall logistics costs", says Sander de Leeuw, project manager at Avery Dennison.
Avery Dennison's complex supply chain structure is a special challenge during this project. The company manufactures some thousands of different products at eight production sites in Europe; mainly in form of large paper film rolls of self-adhesive label stock. In a second downstream production step, these rolls are cut to size according to incoming orders in 17 distribution centres and subsequently delivered to some thousands of customers. ORion-PI® enables the company to map this two-stage production system and include all relevant factors and constraints in the analysis and optimization of the supply chain. This includes e.g. sites, capacities, transport routes and methods, supply relationships and material flows. In addition, the software considers both the service requirements and the relevant costs, like freight rates as well as storage, handling and cutting costs.
