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Continental Barum

Smart Algorithm Significantly Reduces Inter-Warehouse Transportation Costs

Significant
Transportation cost reduction
More
Single-warehouse dispatches
The Challenge

Tires Stored Without a System Led to Costly Cross-Warehouse Transfers at Every Dispatch

Continental Barum, a Czech tire manufacturer producing over 20 million tires annually, needed to minimise inter-warehouse transportation costs during order fulfilment and dispatching operations. Manually deciding where to store produced tires led to suboptimal placement and costly cross-warehouse transfers.

Our Approach

Distribution Algorithm Recommends Optimal Storage Locations Based on Historical Order Patterns

Blindspot analysed historical data encompassing orders, dispatching logistics, and routes, then developed an intelligent tire distribution algorithm alongside a web-based application. The system recommends optimal storage locations for newly produced tires to reduce future inter-warehouse transportation needs.

Results

More Orders Dispatched from a Single Warehouse, Inter-Warehouse Transfer Costs Significantly Reduced

More orders can now be dispatched directly from single warehouses. Inter-warehouse transit was reduced to minimum levels, and transportation costs decreased significantly. The web application gives logistics teams clear, actionable recommendations at the point of storage assignment.

Next Steps

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