NUMBER 1 / ARTICLE 1 / 2020

PBG Same Day Express Implementation

In January 2020, PBG stopped using depots. Customer orders are now sent out from the central warehouse in Barneveld twice daily. Customers benefit from a broader selection of tires and rims and have the option to receive deliveries twice a day. For PBG, in addition to being able to offer a more extensive product range, this also means a change to the cost structure. Costs are now nearly 100% variable, replacing the previous structure with high fixed costs.

The LSC and Transportation department at Pon Logistics explored and calculated various scenarios. A tendering process led to Parts Express being selected to provide the service. They already take care of Same Day deliveries for Pon Logistics from Almere, Veenendaal, ‘s-Heerenberg and Leusden.

SDE1 and SDE2

With SDE1, PBG customers can place their orders until 10:15 AM. Parts Express sorts per route goods at their own locations, including the SDE stream from Leusden. Deliveries should take place by 2 PM at the latest.

SDE2 is a new type of service for Parts Express and Pon Logistics. Orders placed before 12:30 PM are delivered the same day, and even before 4 PM for most parts of the Netherlands.

Initial results

Right from the start in January, the SDE2 network’s performance has been very satisfactory, with an average >95% of deliveries occurring on time.

SDE1, however, is less gratifying. The assumption had been that with substantial preparations, adding stops to an existing network would not impact the performance. Unfortunately, this proved not to be true in practice.

Although the performance has improved, it isn’t quite there yet. PBG and Parts Express are working hard to achieve better performance at a viable cost. This will be worked out in more detail and implemented in the upcoming months.