- Client FCA - Chrysler
- Project Optimisation of the siting of the FCA-Chrysler logistics hubs in Germany and Scandinavia
- Key Solution no
- Category Logistic and transport
The goal of the project is to provide the customer with a decision-support system for the siting of the distribution hubs located in Germany and Scandinavia starting from the production and collection centre in Volvera (Turin). Germany and Scandinavia have several thousand FCA Demand Points, to which large volumes of spare parts have to be shipped at very frequent intervals.
The need has therefore arisen for a number of sorting Facilities (1, 2 or more) in the target countries, in order to optimise the time, cost and quality of the spare part transfer service.
The project was set up in response to FCA’s need to distribute spares produced by MOPAR, an FCA Group company, to German and Scandinavian demand points.
By modifying the mapping bases it uses, the system could be exported for use in other areas, notably in Eastern Europe, the USA and China. GeneGIS GI used a “Proof of Concept” approach to demonstrate to FCA that the process it was using to identify the best sites could be automated, made faster and replicated, thanks to sophisticated logistics algorithms integrated in GIS technology.
The POC “hit the mark” and won GeneGIS GI a contract to provide the customer with a multi-country platform to support spare parts distribution, potentially in 5 continents.
FCA-SDSS (Spatial Decision Support System) is an interactive system consisting of a DSS and a GIS, designed to provide technical support for decisions over the most efficient siting of intermediate Fiat Chrysler facilities.
The system developed by GeneGIS GI analyses 4 delivery levels:
- Sources Pole (PS), the starting point of the distribution chain
- Regional Distribution Centres (RDC), the main warehouse facilities managed by FCA
- Hubs (HUB), sites owned by the customer or by external couriers
- Demand Points (DP), the distribution end points
The system results are computed with a complex algorithm, which considers a vector road network, based on the web services of the PTV group, and parameters including real distances, times between sites, average speed, load weight, cost per km, trip frequencies, etc., and, for each scenario, includes display of the map showing the best combination of routes from PS to each DP and related reports.
The assessment includes and computes indices such as:
- distance, time and cost for the global scenario and for each route
- performance indices for distance, time, cost, consisting trip frequencies between each level, site size, last mile, etc.
Logistics strategies, especially decisions concerning transportation, are key factors in improving the effectiveness of a supply chain.
The siting decision support system developed by GeneGIS GI provides FCA with a more efficient distribution network, reducing logistics costs and improving customer service by guaranteeing on-time delivery.