Delivery logistics ensures good production planning – this is why
In many manufacturing companies, production planning still starts in the production department.
Capacity, shifts, batches and sequences are determined first – and then the internal freight forwarding or transportation planning department tries to get the goods delivered on time.
This approach creates unnecessary friction, extra handling and ultimately higher costs.
Experience shows that companies with their own internal transportation planning department and production to order or Just-in-Time (JIT) achieve significantly better results when planning is instead based on delivery logistics.
When production is planned without delivery logistics, waste occurs
If you have an internal transportation or freight forwarding department, you are already working at the intersection of order, production and delivery logistics. Yet delivery logistics often only has an impact once production has been fully planned. This means that delivery windows, routes and capacity constraints are only considered late in the process. For companies working with JIT or production to order, this is particularly critical.
Production simply cannot be optimally planned if it doesn’t know the actual delivery options. The result is rescheduling, rush deliveries, extra handling and sub-optimized routes. It’s not a question of a lack of skills – it’s a question of the sequence of planning. When delivery logistics is only involved after production, logistics becomes reactive and waste becomes a regular part of everyday life.
Give delivery logistics the first round of planning – and synchronize the flow
Companies that achieve leaner and more stable operations do one thing differently: they ensure that the internal transportation planning department gets the first round of planning.
This doesn’t mean that production loses control – quite the opposite. It means that production and delivery logistics plan together.
By first determining the delivery windows, routes, sequences and capacity of the delivery logistics, a realistic and executable basis for production is created. The production plan can then be optimized to support efficient loading, fewer shipments and a stable flow through the factory.
In this interplay between delivery logistics and production planning, there are a number of benefits:
Fewer last-minute changes and exceptions
Better utilization of transport capacity
Greater predictability in production
Lower risk of bottlenecks and production stops
Increased delivery reliability for customers
In a nutshell: When delivery logistics and production plan from the same reality, complexity decreases – and performance increases.
Less handling, lower costs and higher customer satisfaction
An important but often underestimated effect of this approach is minimal handling. When production is planned according to the actual delivery schedule, at best, goods can be loaded directly as they roll out of the factory. This reduces the need for internal movement, intermediate storage and re-handling – classic sources of both waste and error.
By linking the ERP system closely with delivery logistics, further benefits are achieved. Order data, production status and delivery schedules are shared, ensuring:
Minimize costs through fewer manual processes and better route utilization
Maximum customer satisfaction through stable deliveries, precise time windows and high OTIF
Digital documentation of the entire logistics process including scans, timestamps, photos and delivery status
A solid data foundation for quality assurance, deviation management and ESG reporting
When delivery logistics is integrated into the ERP flow, data is not just recorded – it becomes an active basis for decision-making. This gives management a clear overview of the connection between order, production and delivery and makes it possible to continuously optimize both operations and customer service.
Read more about how logistics can optimize production: LINK
References
Companies that have optimized their production by integrating delivery logistics early in their processes are fex:
- DS Steel profile
- Areco Profiles
- Lindab
- Ruukki / SSAB
- Arcelor Mittal
- Kingspan
- Tata Steel Europe
More about delivery logistics and production working together
Martin Christopher (LINK)
makes a clear distinction:
Transportation = physical relocation
Delivery logistics = planning, timing, sequencing and customer service
Delivery logistics includes:
Delivery windows
Route and capacity planning
Level of service (OTIF)
Synchronization with production
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