Transport is a key part of the industry value chain. It accounts for a large part of the total production costs for the process and manufacturing as well as building and construction industries. That means that if a flow is managed well, total production costs can be significantly reduced.
Transport journeys from a single production site (such as factory, mine, forest or harbour) to a single destination tend to be predictable; yet there are often unexplored potential to increase efficiency. Perhaps the vehicle combination could be longer, to maximise capacity and reduce the number of transports, and by that cutting the fuel consumption. Perhaps there may be bottlenecks in the production process that means the transport is waiting idle, wasting time and money. Other bottlenecks could be inefficient manual administration or stock levels that are insufficient to cover demand.
Scania is bringing logistics expertise to industries in several ways. Through close collaboration with companies in industries such as mining and forestry, Scania gains an in-depth understanding of the customer’s situation. The core of Scania’s approach to flows in industries, is seeing the vehicles we make not just as products, but as part of the production value chain itself. By applying our flow thinking and our approach to elimination of waste, we analyse the various industries’ logistical flows and the hidden waste and inefficiency that exists in all logistics systems can be identified. Scania can suggest actions to improve those processes and thus a solution for the overall logistical flow.
There is great potential for Scania’s tailor-made service offerings to contribute to a whole industry’s profitability, and with this in mind, the Scania owned company LOTS (Lean Optimised Transport Solutions) is developing its consultancy offering for customers.
Longer, heavier vehicles, such as in the construction or timber industries, make for a more efficient use of energy than vehicles of smaller size that have to make multiple trips; Sweden is one country that has recognised this, approving loads of up to 74 tonnes on certain roads. Making the vehicle more energy-efficient makes the overall production process more efficient, meaning lower production costs.
Digitalisation is another factor with the potential to have a great impact on flows in industries, as connectivity will enable the use of smart and safe autonomous or semi-autonomous technology in closed areas such as mines or container terminals. Scania’s testing of this technology is already well underway.