Lufthansa Cargo boosts handling performance with new production planning system

Lufthansa Cargo has finalised the implementation of its production planning and control (PPC) transformation project.

“An integrated production planning system has been part of our digitalization roadmap”, said Harald Gloy, the cargo airline’s chief operations officer and chief human resources officer.

“The new application enables us to make smarter and faster decisions to ensure on time performance. It gives us more flexibility in order to be better prepared for a high-speed changing environment and thus help us to further improve Lufthansa Cargo’s service to our customers.”

Based on DELMIA Quintiq software and Ab Ovo’s industry expertise, Lufthansa Cargo implemented a production planning application as one element of the PPC system that enables it to maximize capacity of workstations and improve the flow of freight and cargo through its Frankfurt hub.

Increasing planning quality and visibility with smart algorithms and KPI based planning, allows Lufthansa Cargo to handle more cargo in the same facilities with better on-time performance.

The new production planning system assists the planners in scheduling the break-down of incoming cargo and the build-up of outgoing freight for onward transport by truck or flight.

Additionally, it supports the cargo airline to spread the workload better between peak and off-peak hours, which increases average employee productivity and workstation utilization.

The performance of the hub is crucial for the global Lufthansa Cargo supply chain as approximately 80% of all transit cargo flows through Frankfurt.

Edwin Hageman, chief executive at the Ab Ovo Group, said: “We are proud to be part of Lufthansa Cargo’s digitilization journey and being able to provide and implement a production planning system that spurs efficiency and productivity to drive customer satisfaction, while contributing to Lufthansa Cargo’s strategic goals.”

Although the new production planning and control system has been implemented at the cargo airlines Frankfurt hub as a starting point, Lufthansa Cargo is looking to further digitize the supply chain processes to further increase the flexibility and optimize capabilities to steer the shipment flow globally.

Added Gloy: “Global freight demand is expected to continue to further grow. We would like to be prepared for that and ensure we have excellent production planning across the entire supply chain that allows us to keep improving our logistic capabilities.”