Truck Manufacturer Taps LeverX and SAP Yard Logistics to Improve Floor Transport Load Planning

⇨ The implementation of SAP Yard Logistics (YL) significantly improved operational efficiency for the truck manufacturer by automating yard management processes, real-time tracking of forklifts, and optimizing task distribution based on workload and availability.

⇨ Integration of various systems such as ERP and Transportation Management (TM) enhanced communication and streamlined shipping operations, leading to reduced downtime and improved adherence to shipment plans.

⇨ LeverX's customized mobile applications provided forklift drivers and managers with better visibility and control over task execution, further increasing productivity and enabling a systematic approach to yard logistics.

A large truck manufacturer whose employees daily transport thousands of spare parts on forklifts, from the warehouse to the long conveyor belt, and back, was unable to solve incidents rapidly (spare parts aren’t available for shipping, the forklift is out of order, etc.). The company used a time-consuming process to prepare shipping manifests, and lacked transparency in monitoring the movement of forklifts, and others.

Recent SAPinsider research shows a continuing focus on mitigating the rising complexities and risks within supply chains, with 53% of companies noting that increasing complexities and risks is the top driver of supply chain transformation projects. In the recent research report, Building Resilient and Agile Supply Chains via Data, Analytics and Automation, companies also recognized the significance of AI/ML in supply chain operations, with 43% of respondents highlighting its increasing prominence on the corporate agenda. External pressures also influence the need to enhance data, analytics, and automation capabilities. Evolving customer expectations and demand (37%) and the pressure to run more sustainable supply chains (36%) indicate a growing societal and environmental consciousness among supply chain leaders.

To successfully deal with these and other issues that arise when supplying production lines with materials, this truck manufacturer decided to implement a solution for floor transportation management. After a thorough analysis of internal workflow processes, SAP Global Strategic Supplier LeverX chose to implement, configure, and customize the SAP Yard Logistics (YL) solution, and integrate it with other SAP products and third-party software.

The project scope included integration with ERP systems, accounting for the fact that data about shipment orders would be sent from the ERP system to SAP YL, which is used to set up a logistics plan for forklifts. SAP YL would receive the real-time notification of a manifest document generated in SAP ERP and would create a shipment order. Also, the project included an integration of SAP YL with SAP Transportation Management (TM), which would ensure timely loading and unloading of trucks using several ramps within one freight order.

Integration of SAP YL with a third-party GPS tracking solution would also be necessary, to help track the real-time locations of transportation units. Finally, the LeverX team decided to move away from orthodox SAP Fiori apps and developed two customized mobile solutions with Xamarin. One mobile solution allowed forklift drivers to update task statuses, and the other allowed task managers to create tasks for drivers automatically, since the task managers were in charge of check-in and check-out shipment orders and creating tasks for forklift drivers.

The LeverX team also added a new transportation unit ‘’tare’’ to create an accounting system. The tare is now registered via orders, which allows the client to monitor its workload status in the system when accounting is required. Also, the team built an application for vehicle routes that connects different storage bins, enabled by a separate business object to maintain vehicle routes. The application offers an opportunity to edit, block, and join them in service areas.

An algorithm to choose a forklift for specific tasks was also required. To streamline the workflow of enterprise resources, LeverX built the algorithm to search for an appropriate forklift and services area. The system takes into account drivers’ availability, workload, and real-time location (due to the integration with GPS) and then assigns an available employee to a task based on the three criteria.

The project also included displaying route prompts in mobile applications for drivers. LeverX transferred the plant’s physical map into a digital space to enhance the training of new drivers. As a result, vehicle routes and a recommended sequence are displayed in mobile applications for forklift drivers. And the team also allowed the company to visualize a transfer platform according to an up-to-date positioning of storage bins. LeverX configured the plant’s map with SAP Visual Business, an out-of-the-box component included in SAP YL.

LeverX experts created a user-friendly report form that comprised the information about planned orders for tomorrow/next week/next month (or the specified time) based on the data collected from the ERP system. Thanks to the report, the manager can distribute forklift drivers within service areas and change positions based on their workload, optimizing the distribution of employees within the areas.

In totality, the solution LeverX built and deployed for this manufacturer leveraged SAP YL as the primary tool to solve for these primary challenges:

• Make the floor transport loading process more efficient by solving the following tasks:
  • Track and analyze historical and dynamic data about forklifts’ work during a shift;
  • Reduce waiting time while loading/unloading a vehicle.
• Improve shipping, loading, and unloading operations, as follows:
  • Prevent incidents, such as delays in loading materials;
  • Ensure efficient cooperation of managers and yard workers.
• Monitor the task execution status and vehicle availability, including:
  • Track vehicle locations in real-time;
  • Optimize vehicle routes.
• Streamline operations with shipping manifests and forklift workflow, in particular:
  • Fill in and keep electronic manifests;
  • Ensure efficient communication with yard workers (using mobile applications instead of phone calls).

And the most notable results from the project were as follows:

• An automated solution for yard management helps the company avoid unnecessary movements of forklifts and non-optimal routes.
• Instead of vehicle downtime or redundancy, the company received optimized task distribution and strict adherence to shipment plans.
• Due to integrated ERP and TM solutions, the customer has automated and boosted the transferring of shipment orders from third-party systems.
• The implemented solution also takes into account shipment incidents, as mobile applications perform shipment tasks and notify when repair or assistance is required.
• The GPS feature helps monitor shipping to a particular destination location, while an opportunity to select a forklift based on its workload and location ensures a systematic, optimized approach to task distribution.
• The customer can leverage the solution’s capabilities to improve performance resulting in increased business revenue. The client also plans to use the implemented system for driverless forklifts.

What this means for SAPinsiders

Participate in SAPinsider research. SAPinsider will be publishing a research report in December on AI in the Supply Chain that will explore the key drivers causing companies to adopt AI in supply chain, the primary strategies companies are deploying to operationalize AI in supply chain, the critical underlying capabilities that must be in place in order for AI to deliver durable outcomes, and the leading technology tools and providers companies are using to embed AI into supply chain processes and systems. Take the survey today and let your voice be heard!

Do a thorough assessment of all yard processes. Implementing automated check-in/check-out and gate processes reduces manual effort and speeds up vehicle flow. SAP Yard Logistics can automate yard check-in processes by generating gate passes and guiding drivers through the yard, cutting down on queuing and manual checks at entry points​. By using task scheduling and automated dispatch capabilities, SAP Yard Logistics can assign and prioritize tasks for drivers and yard operators. Automated task assignments based on vehicle proximity, availability, and load requirements can further improve operational efficiency and reduce idle time in the yard.

Look at all resources when optimizing schedules and loads. SAP Yard Logistics allows users to schedule and manage dock assignments dynamically, optimizing resource usage and avoiding conflicts. By aligning dock assignments with vehicle arrival times, companies can maximize dock utilization and reduce wait times for unloading/loading. This also ensures that high-priority loads are processed promptly​. Customers can use SAP Yard Logistics to optimize the loading and unloading process, ensuring that resources such as forklifts, loaders, and personnel are effectively allocated. This optimizes the handling of high-priority or time-sensitive goods, improving overall throughput and efficiency.