Background

Gerresheimer Bünder Glas is a leading manufacturer of primary packaging made of glass or plastic (droppers, syringes, bottles, etc.) for the pharmaceutical industry. The subsidiary generates sales of approximately €70 million per annum. As a result of the "Production Restructuring, New Construction/Expansion of Factory Facilities" project, the plant will be completely restructured and converted to production islands. Parts of the new proposed structure are:

• outsource the finished goods warehouse and the entire shipping process to a logistics service provider
• redesign the warehouse for raw materials and semi-finished products and relocate it to the production area

PI was commissioned to redesign the logistics and shipping process and implement the concept, including outsourcing to a logistics service provider.

Results

• Space savings through outsourced finished goods warehouse
• Increased efficiency in the shipping process through outsourcing to a logistics service provider and simple billing based on unit costs
• Increased efficiency through improved location and design of the warehouse for raw materials and semi-finished products
• Savings:
  • Costs approx. 15% annually,
  • Investments approx. €2.6 million (through conversion of vacant warehouse)

PI services

logistics planning

Concept design
analogous to VDI 5200, phases 1 to 3

• Detailed business process for shipping with external service providers; topics include
  • Handling and tracking of finished goods (barcode)
  • Transport scheduling
  • Service provider billing
• Interfaces to logistics service providers defined
• IT systems defined
• Logistics services (storage, order picking and transport) specified on the basis of unit prices, put out to tender and 8 bids prepared ready for award
• 3 logistics service providers audited
• Conversion measures for warehouse and conveyor technology (raw materials, semi-finished products) specified, put out to tender, bids obtained and prepared ready for award
• Detailed budget and implementation schedule

Detailing
analogous to VDI 5200, phases 4 and 5

• Warehousing and conveyor technology (raw materials, semi-finished products) specified
• Outsourcing logistics outbound (finished goods warehouse + order picking) specified, put out to tender and prepared for awarding
• Interfaces to logistics service provider defined
• Budget and schedule created, project controlling established

Implementation
analogous to VDI 5200, phases 6 and 7

• Supplier performance monitored and approved
  • Relocation/integration of existing systems
• Outsourcing of outbound logistics implemented 
• Budget (investments) tracked

Topics

Process design: Process cost calculation, make-or-buy, distribution network, outsourcing

Logistics planning: Material supply strategy by part, simulation of movements/inventories, load carrier design, conveyor technology: Warehouse technology/transport technology

Logistics consulting: Supply chain management