How one Integrated Planning Tool Helped SNCB Logistics Improve Quality, Safety and Performance

CAPELLE AAN DEN IJSSEL, The Netherlands, November 18, 2013 /PRNewswire/ --

SNCB Logistics is an independent freight rail operator within the Belgian rail group SNCB. The freight activity was historically losing money, even before the economic crisis. To become a profitable and competitive private rail operator, it needed to restructure itself completely. The company was privatized on 1 Feb 2011. The firm had never invested in cutting-edge systems to improve the efficiency and quality of its services - that was of course until IRON. The implementation of an integrated planning tool, code-named "IRON," gave the firm's managers the ability to plan based on actual demand and get a precise and transparent view of required resources. IRON has improved profitability,  efficiency, productivity, quality and safety. Thanks to major cost-cutting measures and the benefits of tools like IRON, break-even is near and productivity and quality have structurally improved.

The rail-freight planning challenge

Rail-freight planning is a complex puzzle. It involves long- and short-term planning of locomotives, locomotive drivers and local personnel. Plus constraints such as maintenance rules, route knowledge, traction knowledge and different working time directives and regulations. Before SNCB Logistics introduced IRON, it used separate systems to handle locomotive and train driver management and planning. It used altogether different systems to plan local ground operators and rail paths.

SNCB Logistics wanted a single planning system to control its complete production chain. It would cope with all production resources (yard staff, train drivers, locomotives and rail paths) and all planning horizons, from long-term to day-of-execution.

After tendering the project, SNCB Logistics selected Quintiq and its implementation partner, Ab Ovo. Ab Ovo, a specialist in rail freight and in advanced planning and scheduling (APS) solutions, implemented the Quintiq software and modeled the solution to the customer's demand - a collaborative project which was called IRON.

One solution - many benefits

The solution allows SNCB Logistics planners to see the entire plan in one place. It integrates planning and scheduling of line locomotives, shunting machines, drivers and yard staff. It helps planners make the best decisions for scheduling and re-scheduling resources. The new system integrates existing planning methods with the new processes required for the operations of the new SNCB Logistics organization. It is easy to adjust and it improves communication between different planning teams. SNCB Logistics' unique constraints such as traction knowledge or work environment are modeled in the system, leading to safer and more secure working.

Because the system consolidates and controls a lot of data, it also makes it easier to align planning with key performance indicators (KPIs). This helps SNCB Logistics managers improve performance.   The results of the project include improved employee satisfaction, flexibility, punctuality, higher safety levels, better operational performance and optimized decision making, leading to reduced costs and increased profitability. Quintiq and Ab Ovo plan further work to improve the business results even more. They have scheduled regular updates that they can put in place very quickly.

More growth planned

Today 150 planners and 60 additional users are using the system every day. This will grow to 200 planners and 100 additional users. Working with Ab Ovo and Quintiq, SNCB Logistics has planned and organized training for all 300 users.

Partners in puzzle-solving

The Quintiq platform for planning, scheduling and optimization beats traditional solutions by integrating all processes and resources into a cohesive, flexible plan. Quintiq uses today's most sophisticated optimization engines and can be fully configured to fit the processes and constraints of the business. Covering multiple planning horizons and coordinating all planning parameters, Quintiq solves every planning puzzle.

As a long time Quintiq implementation partner, Ab Ovo has broad experience in modeling customer solutions using the Quintiq platform. It has in-depth knowledge of rail-freight business processes and puts that knowledge to use in various rail-freight companies throughout Europe. The company delivers advanced planning and scheduling solutions as well as an extensive back-office application, the Rail Cargo System, which is tailored to individual rail-freight operations.

"IRON is proving to increase our competitiveness and supports our mission to become the most reliable rail operator. This initiative is only one step in a line of measures that SNCB Logistics is undertaking to improve the safety, quality and productivity of its services," declares the CEO of SNCB Logistics, Geert Pauwels.

About SNCB Logistics

NMBS Logistics is an independent, high performing, international logistics group that is part of the SNCB group. Headquartered in Brussels, it is active in 12 countries. The group was created in 2008 by integrating all companies that were active in the NMBS freight division to bring strengths and complementary activities under one sound structure. On 1 February 2011, the company NMBS Logistics became operational as a rail operator and international group. Please visit http://www.sncblogistics.be for more information about our activities and relevant references.

About Ab Ovo

Ab Ovo is an innovative and independent business & software solutions provider. We provide business consultancy and interim management as well as highly specialized software solutions. Ab Ovo is a key player in the field of European logistics with extensive experience and expertise in supply chain management, logistic processes and advanced planning, scheduling & optimization solutions. We deliver unique software solutions based on in-house software development and specialist third party software from a select number of highly innovative partners. Offices are located in the Netherlands (Rotterdam and Amsterdam), Germany (Düsseldorf) and Sweden (Stockholm). Please visit www.ab-ovo.com for more information about our activities and relevant references.