Suppliers and logistics

Build-to-order

At DAF, trucks are only built when they have been sold, the "Build-to-Order" strategy. The logistic goals derive from the Build-to-Order strategy. 

DAF's logistic goals

The primary logistic goal is delivery reliability. When a customer sends his order to DAF he is given a delivery date for his truck; he then gears his business to this date, so it is of the utmost importance that this delivery date is in fact met.

The second logistic goal that we shall mention here is speed: throughput times along the entire chain must be short, both physically and administratively. Physical speed is achieved by such means as high transport frequencies, administrative speed by means of EDI communication, direct order entry, etc. On the one hand this is necessary because time to market is short, on the other hand because it contributes to greater flexibility.

A very important aspect, finally, is flexibility throughout the chain, since trucks are not built until they have been sold. In addition, the vehicles may have huge variations in design. This gives rise to erratic demand for capacity and materials.

Logistic development at DAF

In order to achieve its objectives, DAF is constantly concerned with process improvement. Important elements in this are: 

• low stock levels, 
• short administrative throughput times, 
• minimisation of unnecessary handling, 
• integration of DAF and supplier processes,   
• optimising transport runs,  
• optimising the size and spread of the supplier base, 
• standardisation of parts, etc. 

In addition, a great deal of effort is put into developing and implementing efficient systems for controlling all of these processes. The minimum total costs are always taken into account when deciding whether to implement the above process improvements.