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Philips Lighting optimizes transportation using SHORTREC
As of November 2003 Philips Lighting Distribution (PLD) in Eindhoven, The Netherlands has been using ORTEC’s route planning solution SHORTREC for its outbound distribution. SHORTREC automatically determines for each individual order whether it should be shipped using a courier, crossdock facility, or direct delivery in order to minimize cost.
Improved Efficiency
SHORTREC generates optimal transportation schedules taking into account the varying rates for different carriers and modes, agreed upon service levels and the impact of order picking in the warehouse. To obtain an integrated solution, SHORTREC has been implemented in conjunction with the MARC Global WMS solution. The combination of optimization based on different transportation rates for different modes and the integration with warehouse activities results in more efficient distribution schedules for PLD.
In 2002 Philips Lighting Distribution and ORTEC already signed a corporate agreement for the implementation of ORTEC’s advanced planning software. After the successful implementation of SHORTREC at the Acht location, ORTEC and PLD are now investigating opportunities in other departments to use SHORTREC.
Philips Lighting
Philips Lighting is world market leader in the global lighting market in four revolutionary and innovative areas: lighting, lighting electronics, lamps and automotive/special lighting. In 2003 Philips Lighting employed 48,000 employees and generated revenues of 4.9 billion Euro. Philips Lighting has its own distribution organization (PLD) to provide storage and transportation services to clients. Philips views these transportation services as an important and distinguishing factor in this market.