Sustainable value network and reverse logistics configuration

The configuration of the sustainable value network and reverse logistics consists of three different services, as follows:

• Reverse logistic network configuration
• App to collect core information
• Reverse logistic route optimization

The overall objective is to provide reverse logistics services for remanufacturers which starts as early in the reverse supply chain as possible.

Based on the expected core income in the workshop, the service simulates transport flows in order to select the optimal locations for the collection points and to dimension the overall network, e.g. the number of transport units or the allocation of the workshops to the collection points.

A simulation-based approach allows to dynamically assess the network configuration. Calculated KPIs are lead time, truck utilization, emissions, transport costs, load factors etc. The simulation model also allows to tackle “what-if-questions” thus analyzing alternative network configurations, alternative number of transport resources, or alternative routing. And finally, the simulation may serve as a testbed for the route optimization.

• Network planning and simulation for reverse logistics.
• Optimized localization of the nodes of the reverse logistics network.

Based on a digital app, information on used car parts (cores) is collected from the last usage environment of an old part. This information is shared via the DigiPrime platform for optimizing the reverse supply chain and deciding on circular usage scenarios for the cores including incentive decisions.

A mobile app allows to collect information on the location and condition of used parts directly from its last usage environment (e.g. automotive workshop). The digital sensors of the device and AI can be used to simplify the process for end users and make data more reliable. The digital collection of information is linked to the ability of conducting physical reverse logistics for used parts so that an optimization can be achieved and a service offer can be provided to remanufacturers.

• Decision on circular usage scenario and granting of incentives possible before used part is transported.
• Access to specific information on product type, condition and failure protocol out of last usage environment (e.g. error codes and testing protocol from vehicle OBD test equipment) for reman producers.

The data collected by the digital app is used for AI-based calculation of the optimal transport processes. For this purpose, transports are bundled and assigned to means of transport, taking into account the pick-up periods, and the optimal route of the individual transports is also determined.

When optimizing the transports, an AI is used that takes into account both the restrictions of the drivers and vehicles (max. payload, loading volume, break times, etc.) and the general conditions of the individual consignments (weight, pick-up time at the workshop, etc.). The optimization goal is the minimum total distance travelled by the transports and, implicitly, the minimization of CO₂ emissions while complying with time restrictions. The expected arrival of cores at the reman plants can – similar to the current stock of cores – be used to schedule the reman processes.

• “Reverse last mile problem”: Optimized reverse logistics flow of used car parts from small locations such as automotive workshops.
• Bundling of reverse transport volumes of several product types and producers.