Kiessling-Spedition: Distribution Planning for In-Night Express
(8 pages of text)
Kiessling Spedition (Kiessling) was an international operating forwarder in Regenstauf (Eastern Bavaria), Germany, and a member of a large in-night express network. In April 2017, the company faced the problem of losing one of its major consigners. The consigner was a large wholesaler of automotive parts for the utility sector and had been feeding high volumes into Kiessling’s in-night system. This cancellation caused the volume and use of most of Kiessling’s in-night tours to drop significantly, by as much as 40 per cent in volume and 26 per cent in stops. Since the distribution costs were almost fully fixed, the contribution margin of all affected tours decreased. In order to adapt the Kiessling in-night operations to overcome this turmoil, the operations manager and his team needed to choose among several alternatives, and then make a plan to implement the solution quickly.
This case is intended for use in a logistics or operations management course at the undergraduate or graduate level. It can also be used in a supply chain management class with a strong operational focus on supply chain execution. After completing the case and assignment questions, students should be able to
- describe how courier, express, and parcel (CEP) service providers operate;
- analyze the productivity of distribution operations using key figures;
- differentiate between consistency and flexibility, and balance the two in the context of distribution planning; and
- give examples of good and bad districting solutions.
Transportation and Warehousing
Germany, Medium, 2017
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