Demand shaping for online B2B retail – Technische Unie

 Overview

Company Description

Technische Unie is a Dutch wholesaler of technical installation materials. The company operates 41 selling locations (sales offices, sales points and pick-up points) in The Netherlands as well as 3 distribution centers.

Project Description

Technische Unie has a policy of placing orders before 8:00 p.m. with a guarantee of next-day delivery. The bulk of orders is received between 3 p.m. and 5 p.m. This policy entails disproportionate workload, strain on automation, planning issues, risks and costs. Not only in the supply chain but companywide. Failure to deliver orders on time can either result in a tarnished reputation for Technische Unie. Overtime that may be incurred to ensure timely delivery of orders has a significant impact on costs and employee satisfaction.

Technische Unie is interested to validate financial and non-financial impact of  demand shaping methods (e.g. differentiated pricing, change default with next-day delivery as a service, dynamic pricing) approach an optimal workload balance, and what the impact would be on their logistical processes (e.g. buffers).

Goals of the Project

Assess impact of demand shaping methods for Technische Unie

Deliverables

• Understanding of the impact of different demand shaping methods on the costs, risks, performance and other logistical processes at Technische Unie.
• Propose improvement actions.

Essential Student Knowledge

• Understanding of cost management, capacity planning and basic demand models.
• Good communication skills
• Computer coding skills 

More information: escf@tue.nl