Artelys Optimizes Toyota Motor Europe Vehicle Processing Using FICO Technology

Rhea-AI Summary

Artelys, using FICO optimization technology, has improved efficiency at Toyota Motor Europe's vehicle distribution hubs, reducing manual scheduling time from 3 hours to 20 minutes. The solution optimized post-production activities, increased distribution hub efficiency, minimized delivery times, and reduced carbon footprint.

Insights

Supply Chain Management Expert

Optimizing the post-production activity in vehicle distribution hubs is a significant advancement in supply chain management. The reduction from three hours to 20 minutes in manual scheduling per hub represents an approximate 90% decrease in time spent on this task. This efficiency gain is likely to translate into cost savings and increased throughput for Toyota Motor Europe, which could have a positive impact on their operational expenses and profitability. The ability to add options to vehicles and still maintain reduced delivery times is a competitive advantage, enhancing customer satisfaction and potentially increasing sales.

Moreover, the reduction in carbon footprint aligns with the growing trend of environmentally responsible business practices. This not only benefits the company's corporate social responsibility profile but could also lead to savings through reduced energy consumption and potential tax benefits associated with environmental initiatives. The combination of efficiency, customer satisfaction and environmental responsibility contributes to a strengthened brand image and can be a deciding factor for environmentally conscious consumers.

Environmental Sustainability Analyst

The integration of FICO optimization technology in reducing the carbon footprint of Toyota's vehicle logistics operations is a noteworthy example of how advanced analytics can contribute to environmental sustainability. The ability to optimize numerous operations daily while minimizing delivery time and reducing emissions is a testament to the potential of data-driven decision-making in achieving sustainability goals.

By addressing the environmental impact of logistics, Toyota Motor Europe is not only complying with increasingly stringent regulations but also appealing to the growing market segment that values eco-friendly business practices. This strategic move could lead to a stronger market position and potentially unlock new customer segments that prioritize sustainability. The emphasis on user acceptance of the optimization solution is crucial, as it ensures that the improvements are sustainable over the long term by fostering a positive reception among the workforce.

Automotive Industry Analyst

The use of FICO's Xpress Optimization technology in Toyota Motor Europe's distribution hubs is a clear indicator of the automotive industry's shift towards digital transformation. The implementation of such advanced optimization solutions is a strategic investment that can provide Toyota with a significant edge over competitors in terms of operational efficiency and agility.

The automotive sector is characterized by complex supply chains and the need for just-in-time delivery, making the ability to re-optimize on the fly a critical feature. This adaptability can help Toyota respond more effectively to market changes and unexpected disruptions, thereby maintaining a smooth supply chain operation. The partnership with FICO and the utilization of Artelys' expertise in mathematical optimization for supply chain applications may encourage other industry players to follow suit, potentially leading to a broader adoption of similar technologies across the sector.

Optimization solution improved efficiency, reduced delivery times and reduced carbon footprint

LONDON--(BUSINESS WIRE)-- FICO (NYSE: FICO):

Artelys, an independent company specializing in numerical optimization, modeling, and decision support, has used FICO optimization technology to build a solution that optimizes post-production activity in Toyota Motor Europe’s vehicle distribution hubs, organizing tens of thousands of operations on thousands of vehicles a day. The manual scheduling that used to take three hours per day for each hub is now done in 20 minutes.

A customer buying a vehicle from a Toyota retailer can add numerous options to a Toyota vehicle such as a navigation system, a towing bar or a parking assist system. To minimize delivery time, the solution has increased the efficiency of the distribution hubs of Toyota Motor Europe, ensured satisfactory delivery time to customers, and reduced the carbon footprint of vehicle logistics operations.

“The flexibility of FICO^® Xpress and Artelys Kalis was key to address the very specific scheduling needs of Toyota’s workshops,” said Nicolas Omont, VP Operations at Artelys.

More information: https://www.fico.com/en/products/fico-xpress-optimization and https://www.artelys.com/solvers/xpress/.

At the heart of Toyota Motor Europe’s supply chain are seven strategically located vehicle distribution hubs that handle both the European-built models and those shipped to Europe from overseas. These hubs ensure all vehicles get to their customers on time, performing final installations on the vehicles and a final inspection before shipping the vehicles to their retailer. Achieving on-time delivery while reducing lead times and CO2 emissions is critical.

The Artelys solution optimizes the work plan at each hub, maximizing the number of tasks that can be performed considering many technical and operational constraints. These constraints vary widely, from restricting vehicle movements within the facility to ensuring compliance with legal working hours for the team.

“It is particularly hard to design applications able to efficiently manage such heterogeneous constraints and objectives and prioritize them,” said Omont. “In addition, the software is able to manage optional flexibility by enabling potential overtime to finish highly prioritized tasks or diversify crews working on difficult tasks.”

User acceptance was also essential. Artelys developed the solution to show planners that they wouldn’t lose flexibility in their way of working, and they wouldn’t have a black box providing plans without being able to understand them. Planners can analyse the application output and understand differences with their current way of working.

The Toyota Motor Europe solution must solve the planning every day in a few minutes to allow sufficient time for the planners to validate it. In addition, it can re-optimize on the fly, based on end-user manual amendments.

“Thanks to Constraint Programming, the complex optimization problems are solved with the reliability and consistency with no room for failure,” concluded Omont. “We use advanced features of FICO Xpress to implement several heuristics. They provide distinct solutions among which the best one is selected.”

Strong Partnership with FICO

“Artelys has a strong partnership with FICO, having worked together for more than 15 years,” said Omont. “The solution we created for Toyota relies on FICO^® Xpress Optimization, as the problem is modelled with Xpress Mosel language and solved with Artelys Kalis, which is fully integrated into FICO^® Xpress. Artelys’ expertise in mathematical optimization applied to supply chain has enabled FICO to consolidate its position as one of the leading optimization solvers for supply chain applications in Europe.”

“This kind of optimization will only gain in importance as manufacturers worldwide look to reduce their carbon footprint while maximizing performance,” said Alexandre Graff, vice president of Global Partners & Alliances at FICO. “Artelys has demonstrated with this project and others the massive potential of using FICO optimization to solve incredibly challenging supply chain problems.”

About Artelys

Founded in 2000 in Paris, Artelys is an independent company specializing in numerical optimization, modelling and decision support. Artelys activities cover software edition and consulting services in optimization, data science and artificial intelligence. The company provides off-the-shelf software such as the Artelys Crystal suite or numerical optimization solvers and custom software solutions to tackle specific business problems. www.artelys.com/

About FICO

FICO (NYSE: FICO) powers decisions that help people and businesses around the world prosper. Founded in 1956, the company is a pioneer in the use of predictive analytics and data science to improve operational decisions. FICO holds more than 200 US and foreign patents on technologies that increase profitability, customer satisfaction and growth for businesses in financial services, insurance, telecommunications, health care, retail and many other industries. Using FICO solutions, businesses in more than 100 countries do everything from protecting 4 billion payment cards from fraud, to improving financial inclusion, to increasing supply chain resiliency. The FICO® Score, used by 90% of top US lenders, is the standard measure of consumer credit risk in the US and other countries, improving risk management, credit access and transparency. Learn more at www.fico.com.

FICO is a registered trademark of Fair Isaac Corporation in the U.S. and other countries.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240403611662/en/

FICO UK PR Team

Wendy Harrison/Parm Heer

ficoteam@harrisonsadler.com

0208 977 9132

Source: FICO

FAQ

How did Artelys improve efficiency at Toyota Motor Europe's vehicle distribution hubs?

Artelys used FICO optimization technology to reduce manual scheduling time from 3 hours to 20 minutes, optimizing post-production activities.

What impact did the solution have on delivery times at Toyota Motor Europe?

The solution minimized delivery times by increasing distribution hub efficiency and ensuring satisfactory delivery times to customers.

How did the solution reduce the carbon footprint of vehicle logistics operations at Toyota Motor Europe?

The solution reduced the carbon footprint by optimizing post-production activities, which in turn increased distribution hub efficiency and minimized delivery times.

What key technologies were used in the solution developed by Artelys?

The solution utilized FICO Xpress and Artelys Kalis technologies to address the specific scheduling needs of Toyota's workshops.

How did Artelys ensure user acceptance of the solution at Toyota Motor Europe?

Artelys developed the solution to show planners that they wouldn't lose flexibility in their work and provided a clear understanding of the optimization plans.