Reducing cycle times by 49% in balanced in- and outbound flow, China

LOTS helped inaugurate the client's first Chinese production facility

Fadi Said

Managing Director – LOTS China

The Situation

The client, a global leader within paper, packaging and biomaterials industries, inaugurated their first Chinese production facility in 2016 with a large-scale papermill in the southern parts of China.

The mill was initially planned to have a fully-integrated mechanical pulp production, using raw material sourced from its own managed eucalyptus plantations.

The Approach

As the decision was taken to source pulp from external suppliers rather than produce inhouse we redesigned our transport solution to an effective flow cycle, transporting pulp from port to mill and finished product back from mill to port.

To support an effective operation we set up our proprietary digital solutions using geo-fencing for accurate monitoring, control and cycle time measurement to drive our daily improvement meetings and resulting actions.

The Impact

A cycle time reduction during the first year of 49 %

A – fully realized – cost saving for the customer of 22 %

A fully digitalized operation, including a customer interface for live visualization of the flow of goods