Quintiq, a Dassault Systèmes company and global leader in supply chain planning and optimization (SCP&O), has been selected to improve Lufthansa Cargo’s production planning at two of its most relevant hubs in Frankfurt and Munich.
Additional stations will be included in the future in Lufthansa Cargo’s effort to set up a global supply chain system. Lufthansa Cargo can look forward to improved business performance with Quintiq, as the solution is set to maximize capacity of workstations and improve the flow of freight between inbound and outbound processes.
“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,” said Sören Stark, Chief Operating Officer at Lufthansa Cargo.
Lufthansa Cargo has great expectations for its high-volume operations. As the largest cargo airline in Europe, it transports over a million tons of cargo a year across approximately 100 countries. At the two 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 will enable Lufthansa Cargo to make smarter decisions with regards to schedules and workstation locations for these breakdown and build-up activities. 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.
“The Quintiq team impressed us with their experience and ability to find simple solutions for our complex challenges. They were able to translate them into a powerful software solution that will improve our cargo handling operations and resource usage,” said Tim Heppenheimer, Head of Supply Chain Management, Lufthansa Cargo.
The Quintiq solution 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 optimization technology, it will manage even last-minute updates, as full information on orders may arrive just hours before the goods are scheduled for delivery. The solution 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.
“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,” said Rob van Egmond, CEO at Quintiq. “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.”
About Lufthansa Cargo
Lufthansa Cargo ranks among the world’s leading air freight carriers. In the 2017 business year, the airline transported around 1.6 million tons of freight and mail and sold 8.9 billion revenue ton-kilometers. The company currently employs about 4,500 people worldwide. The cargo carrier serves around 300 destinations in more than 100 countries with its own fleet of freighters, the belly capacities of passenger aircraft operated by Lufthansa, Austrian Airlines and Eurowings, and an extensive road feeder service network. The bulk of the cargo business in routed through Frankfurt Airport. Lufthansa Cargo is a wholly owned Lufthansa subsidiary of Deutsche Lufthansa AG.
Every business has its supply chain planning challenges. Some of those challenges are large. Some are complex. Some seem impossible to solve. Since 1997, Quintiq has been solving each of those challenges with a supply chain planning and optimization software system. Today, approximately 12,000 users in over 80 countries rely on Quintiq software to plan and optimize workforces, logistics and production. Part of Dassault Systèmes, Quintiq has headquarters in the Netherlands and the USA, and offices around the world.